News

El Pollo Loco's 3Q practically stagnant

November 14, 2010

EPL Intermediate Inc., parent company of El Pollo Loco Inc., reported results for its third quarter ended Sept. 29.

Total operating revenue -- including company-operated and franchise units -- was $68.2 million, which is a slight decrease of 0.4 percent from the same period 2009.

The drop was mostly attributed to a 2.2 percent decrease in system-wide same-store sales. Steve Sather, acting president and CEO of El Pollo Loco Inc., cited the challenging economy and high level of unemployment in the chain's core markets, in particular among Hispanics, a key demographic for the brand, for the decline.

Also, third quarter operating income increased by 3.3 percent, to $4.9 million, mostly due to lower restaurant asset impairment charges and a decrease in product costs.

Third quarter results, however, painted a much brighter picture than the first part of 2010, in which El Pollo Loco dropped 2 percent in the second quarter from 2009, and 4 percent in the first quarter, which was its first negative same-store sales report in a decade.

The third quarter included the launch of the Queso Crunch Burrito, served with either chicken or steak, and the Double Your Chicken for $5 offer with the purchase of any eight, 10 or 12-piece meal.

"We believe that the key to driving sales in this challenging environment is to remain keenly focused on striking the right balance between value and check performance while continuing our system-wide focus on operational excellence and exceptional guest service," Sather said. "With the economy continuing to negatively impact consumer spending, we are taking this time to align our entire team, company members and franchisees around a sharpened focus on quality, service and cleanliness as a platform to strengthen our position for momentum when the economy turns around."

El Pollo Loco is based in Costa Mesa, Calif. The chain includes 170 company-owned units and 242 franchises.