Revenues up at El Pollo Loco
El Pollo Loco's Q2 revenues were up 8.3 percent, to $105.6 million, compared to $97.5 million for the 13-week period ended June 28, 2017.
"During the second quarter, we achieved solid results, including system-wide comparable store sales growth of 2.9 percent and a return to positive transaction growth," Steve Sather, president and CEO, said in a press release on the earnings news. "Our core business continues to perform well, driven by our strategy to highlight our authentic brand, our differentiated offerings, and our QSR+ positioning.
"Additionally we made progress against new technology initiatives focused on driving convenience and loyalty, rolling out delivery and launching our all-new Loco Rewards loyalty program."
Other highlights included:
- System-wide comparable restaurant sales increased 2.9 percent, including a 2.4 percent increase for company-operated restaurants, and a 3.2 percent increase for franchised restaurants.
- Net income increased to $7.8 million, or $0.20 per diluted share, compared to $7.3 million, or $0.19 per diluted share in the prior year.
- Pro forma net income was $8.2 million, or $0.21 per diluted share, compared to $7.6 million, or $0.19 per diluted share.
- Adjusted EBITDA was $19.7 million, compared to $17.9 million.
"While we're pleased with the performance of our core business, our sales in Houston and Dallas remain challenged," Sather said. "We continue to reevaluate our marketing and operations programs in order to generate sustained momentum in these very competitive Texas markets."
Based on current information, the company expects 2017 pro forma diluted net income per share ranging from $0.64 to $0.67. This compares to pro forma diluted net income per share of $0.66 in 2016. Pro forma net income guidance for fiscal year 2017 is based, in part, on the following updated annual assumptions:
System-wide comparable restaurant sales growth of 1.0 percent to 2.0 percent;
The opening of 17 to 19 new company-owned restaurants and nine to 11 new franchised restaurants;
Restaurant contribution margin of 20.3 percent to 20.7 percent;
G&A expenses of between 8.5 percent and 8.7 percent of total revenue excluding legal fees related to securities class action litigation;
Pro forma income tax rate of 39.5 percent; and
Adjusted EBITDA of between $66.5 and $68.5 million.
Topics: Trends / Statistics
Companies: El Pollo Loco