News

El Pollo Loco struggles through Q2

August 3, 2018

El Pollo Loco's Q2 financial results indicated that the QSR chicken chain struggled the first part of this year, with net income down $5.1 million or 13 cents per diluted share compared to 20 cents during the same period last year or $7.8 million, a news release said. 

System-wide comparable sales were also down at total of 0.9 percent, including a 1.6 drop at company-operated stores and a 0.3 percent decrease for franchised restaurants.

Other results included: 

• Adjusted EBITDA fell to $17.5 million, compared to $19.7 million in the same period of 2017.
• Company-operated restaurant grew 0.8 percent to $99.6 million, compared to $98.9 million in Q2 2017. 
• Comparable company-operated Q2 restaurant sales fell 1.6 percent.
• Franchise revenue dropped 2 percent to $6.6 million, versus $6.7 million last year. 

El Pollo Loco President and CEO Bernard Acoca said the result were "In line with our expectations," and reaffirmed the company's full-year guidance. 

"While our results match our guidance, it is important to call out that we are not satisfied with them and are working hard to drive performance in the second half of the year," he said in the release. "During the quarter, we made progress on many facets of our Transformational Agenda, which is focused on developing a people-first culture, differentiating the brand by accentuating and building upon our strengths, and growing the business responsibly and profitably for the long term."

Acoca said the brand has launched a leadership program that will serve as a foundational element of the culture by emphasizing authentic, transparent leadership with humility. The brand is also making strides toward expanded delivery and a bigger loyalty program footprint.