News

El Pollo Loco reports modest Q3 sales gain, revenue losses

November 1, 2019

El Pollo Loco Holdings Inc. turned in relatively lackluster financial results, for the third quarter that ended Sept. 25, showing total revenue and net income both down slightly, but an increase in system-wide comparable sales of 1.1 percent, according to a report released late Thursday. 

Q3 company-operated restaurant revenue fell from $100 million during last year's quarter to $99.1 million this year, attributed to the closure of five restaurants and sale of 11 company stores to franchisees earlier this year, which the company said led to a $4.4 million drop in revenue. 

That loss was partially offset by a 1.6% increase in company-operated comparable restaurant sales, as well as the six new restaurants opened during, and subsequent to, the third quarter of 2018 and $0.5 million from increased revenue from the brand's loyalty points program.

Other key highlights include: 

• Total revenue fell to $112.1 million from $112.2 million last year.
• 1.6% increase in company-operated system-wide comparable restaurant sales.
• 0.6% increase in franchisee-operated system-wide comp sales.
• $6.4 million in net income from $6.4 million (18 cents per diluted share) compared to $6.8 million and 17 cents last year's quarter. 
• Pro forma net income was $7.2 million, or 20 cents per diluted share, compared to $7.6 million, or 19 cents per diluted share.
• Adjusted EBITDA was $15.9 million, compared to $16.3 million.

"Our third quarter results were highlighted by accelerating sales momentum as our Transformation Agenda continues to gain traction," President and CEO Bernard Acoca said in the report. "Despite a slow start to the quarter, the expansion of our delivery capabilities, focus on value and improved company operations drove system-wide comparable restaurant sales growth of 1.1%, representing our fifth straight quarter of positive system-wide comp growth."

Acoca said in terms of sales September was the strongest month of the year due to an upswing in traffic.