Core Points - El Pollo Loco is celebrating National Burrito Day with a three-day event called the Burrito Block Party from April 2 to April 4, 2025, offering exclusive deals and giveaways for Loco Rewards members [1][4] Group 1: Event Details - On April 2, exclusive promo codes will be shared on Instagram Stories for Loco Rewards members to redeem in the app [2] - On April 3, Loco Rewards members can enjoy a buy one, get one free deal on select Fire-Grilled Chicken Burritos [3] - On April 4, the celebration will conclude with a Loco Friday Drop and giveaways, including a chance to win limited-edition items [4][7] Group 2: Promotions and Offers - The first 100 members to redeem will receive a free burrito, followed by discounts for the next 300 (50% off), 2,000 (20% off), and 10,000 members (15% off) [6] - $0 delivery is available on all orders placed through the Loco Rewards app or website with a minimum purchase of $15 on April 4, 2025 [7] Group 3: Company Overview - El Pollo Loco is recognized as the leading fire-grilled chicken restaurant in the U.S., known for its flavorful and healthier offerings [5] - The company operates over 495 restaurants across seven U.S. states and has expanded internationally with locations in the Philippines [8]

Pollo Loco’s ( LOCO ) double beat sent its stock soaring. But the flight was soon interrupted. It was a chicken flight! The stock soon returned to its decliningI am an Equity Analyst and Accountant specializing in restaurant stocks, with a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans mult ...

Restaurant Operations - As of December 25, 2024, the company operated 498 locations across seven states, with two new company-operated restaurants opened in fiscal 2024[248]. - The company plans to open one to two new company-operated restaurants and eight to nine new franchised restaurants in 2025[249]. - The company completed eight company-operated restaurant remodels and 44 franchise remodels in fiscal 2024, with plans for 30-40 remodels in fiscal 2025[256]. - The company opened new restaurants during the reporting period, contributing to initial higher sales volumes before stabilizing[311]. - The company licensed 10 restaurants in the Philippines as of December 25, 2024, expanding its international presence[395]. Sales Performance - Comparable restaurant sales system-wide increased by 3.2% in fiscal 2024, compared to a decrease of 0.3% in fiscal 2023[250]. - For company-operated restaurants, comparable sales increased by 2.8% in fiscal 2024, driven by a 7.9% increase in average check size, partially offset by a 4.7% decrease in transactions[251]. - Comparable restaurant sales at franchised restaurants increased by 3.5% in fiscal 2024, following a decrease of 0.7% in fiscal 2023[252]. - Comparable restaurant sales growth included a 2.8% increase for company-operated restaurants and a 3.5% increase for franchised restaurants, driven by a 7.9% rise in average check size[299][305]. Financial Performance - Total revenue for fiscal 2024 was $473.0 million, compared to $468.7 million in fiscal 2023, indicating a slight increase[304]. - Net income for fiscal 2024 was $25.7 million, a slight increase of $130, or 0.5%, compared to $25.6 million in fiscal 2023[276]. - Basic net income per share rose to $0.86 from $0.75, indicating a growth of 14.7%[386]. - Franchise revenue increased to $45.6 million in fiscal 2024, compared to $41.0 million in fiscal 2023, alongside franchise advertising fee revenue of $31.2 million[304]. - The restaurant contribution for fiscal 2024 was $69.1 million, reflecting an increase from $61.9 million in fiscal 2023, with a contribution margin of 17.4%[310]. Cost Management - The company has experienced inflationary pressures affecting food, labor, and construction costs, which are anticipated to continue into fiscal 2025[244]. - Food and paper costs decreased by $7.5 million, or 7.0%, in fiscal 2024, with food and paper costs as a percentage of company-operated restaurant revenue at 25.4%, down from 27.2% in fiscal 2023[280]. - Labor and related expenses decreased by $0.1 million, or 0.1%, due to a $5.8 million reduction from sold restaurants, offset by a $12.3 million increase from higher wage rates[281]. - Occupancy and other operating expenses decreased by $2.1 million, or 2.1%, with occupancy costs as a percentage of company-operated restaurant revenue at 25.1%, down from 25.4% in fiscal 2023[283]. Capital Expenditures and Investments - Total capital expenditures for 2024 were $19.1 million, with approximately $4.3 million spent on new restaurant development and $14.8 million on existing restaurant investments[341]. - The company expects to incur between $30.0 million and $34.0 million in total capital expenditures for 2025, with $3.0 million to $5.0 million for new restaurant construction[341]. Share Repurchase and Debt Management - In fiscal 2024, the company repurchased shares of common stock totaling $20.6 million, a decrease from $59.2 million in fiscal 2023[333]. - The company announced a share repurchase program authorized to repurchase up to $20 million of common stock, set to terminate on March 31, 2025[344]. - As of December 25, 2024, the company had outstanding borrowings of $71 million under the 2022 Revolver, with a margin of 1.5%[367]. - A 1% increase in the effective interest rate on the 2022 Revolver borrowings would result in a pre-tax interest expense increase of $0.7 million annually[367]. Compliance and Regulatory Factors - Labor and regulatory compliance costs are expected to increase due to California's AB 1228, which raises the minimum wage to $20 per hour starting April 1, 2024[243]. - The company was in compliance with financial covenants under the 2022 Credit Agreement as of December 25, 2024[340]. Cash Flow and Liquidity - In fiscal 2024, the company recorded net cash provided by operating activities of $46.8 million, an increase of $6.1 million compared to fiscal 2023[330]. - Cash and cash equivalents at the end of the period were $2,484 million, down from $7,288 million in 2023, marking a decrease of 65.9%[394]. - As of December 25, 2024, the company's total debt was $71.0 million, with available cash of $2.5 million to meet liquidity needs for the next twelve months[398]. Membership and Loyalty Programs - The Loco Rewards loyalty program had over 4.2 million members as of December 25, 2024, with $0.8 million in revenue allocated to unredeemed loyalty points[258]. - The performance obligation related to loyalty points is satisfied when points are redeemed or expire[430]. Miscellaneous - The company does not currently use financial instruments to hedge commodity price risks, which may impact operational results[370]. - The company had one supplier accounting for 19.7% of accounts payable as of December 25, 2024, and 15.1% as of December 27, 2023[406].

Core Insights - El Pollo Loco Holdings, Inc. (LOCO) reported strong fourth-quarter fiscal 2024 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were 20 cents, surpassing the Zacks Consensus Estimate of 13 cents by 53.9%, compared to an adjusted loss per share of 16 cents in the prior-year quarter [3]. - Total revenues reached $114.3 million, slightly above the consensus mark of $113 million, reflecting a 1.9% year-over-year increase [3]. - Comparable restaurant revenues increased to $95.6 million from $94 million year over year, with a system-wide comparable restaurant sales growth of 0.5% [4]. Operating Highlights - Total expenses rose to $105.3 million from $104.8 million year over year, but as a percentage of total revenues, expenses decreased to 92.1% from 93.4% [5]. - Operating income improved to $9 million from $7.5 million year over year [5]. Annual Overview - For fiscal 2024, total revenues increased to $473 million from $468.7 million in fiscal 2023, while company-operated restaurant revenues declined to $396.3 million from $398.4 million [6]. - The annual adjusted EPS rose to 86 cents from 74 cents reported in fiscal 2023 [6]. Financial Position - As of December 25, 2024, cash and cash equivalents were $2.5 million, down from $7.3 million at the end of fiscal 2023, while total debt decreased to $71 million from $84 million [7]. Market Reaction - Following the announcement of the results, LOCO stock increased by 5.7% during after-hours trading [2]. Zacks Rank - El Pollo Loco currently holds a Zacks Rank 2 (Buy) [8].

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $114.3 million, up from $112.2 million in Q4 2023, representing a year-over-year increase [36] - Company-operated restaurant revenue increased by 1.8% to $95.6 million from $94 million in the same period last year, driven by a 1.6% increase in comparable restaurant sales [36] - Restaurant contribution margin for Q4 was 16.7%, compared to 15.8% in the prior year, indicating a 90 basis point improvement [40] - GAAP net income for Q4 was $6 million, or $0.20 per diluted share, compared to $4.4 million, or $0.14 per diluted share in the prior year [41] Business Line Data and Key Metrics Changes - Franchise revenue increased by 2.5% to $11.2 million during Q4, driven by new franchise openings, despite a 0.1% decrease in comparable restaurant sales [37] - Average check size increased by 9%, while transactions decreased by approximately 6.8% during Q4 [37] - Food and paper costs as a percentage of company restaurant sales decreased by 180 basis points year-over-year to 25.1% [38] Market Data and Key Metrics Changes - System-wide comparable same-store sales increased by 0.6% year-to-date through February 26, 2025, with a 2.3% increase in company-operated restaurants and a 0.4% decrease in franchise restaurants [37] Company Strategy and Development Direction - The company is focused on a brand transformation to modernize its image and enhance customer experience, aiming to become the national fire-grilled chicken brand [7][19] - A new advertising campaign is set to launch, emphasizing the quality and value of its food offerings [13] - The company plans to open 10 new restaurants in 2025, primarily outside California, and is leveraging restaurant closures in the industry to convert locations into El Pollo Loco restaurants [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the brand's growth potential, citing improvements in unit economics and operational efficiencies [24][34] - The company anticipates commodity inflation to be in the 1.5% to 2.5% range for 2025, with wage inflation expected to be between 5% and 6% [38][39] - Management highlighted the importance of customer satisfaction and operational consistency as key focuses for 2025 [22] Other Important Information - The company completed 8 company-operated remodels and 44 franchise remodels in 2024, with plans to remodel 60 to 80 restaurants in 2025 [43][30] - The company has a robust product calendar for 2025, focusing on culinary innovation and value [32][34] Q&A Session Summary Question: Can you provide insights on the impact of remodels on same-store sales? - Management noted that while they do not have enough data yet, initial consumer reactions to remodels have been positive, and they expect good returns from the remodel program [50][52] Question: What is the status of the franchisee pipeline? - Management indicated that interest from franchise partners is growing, with more meetings and discussions taking place, reflecting the brand's improved performance [53][56] Question: What factors contribute to confidence in margin expansion for 2025? - Management highlighted improvements in supply chain efficiency and labor productivity as key areas driving confidence in further margin expansion [60][62] Question: Can you clarify the build costs for the new restaurant prototype? - Management stated that while the goal is to keep costs around $1.8 million, actual costs may vary based on location and market conditions, with opportunities for lower costs through conversions of closed restaurants [68][72] Question: What is the impact of the L.A. wildfires on operations? - Management reported minimal impact from the wildfires, with no physical losses and only temporary closures due to power outages [75] Question: How is the Mango Habanero product performing? - Management confirmed that the Mango Habanero has driven trial among both existing and new customers, positively impacting sales [78][82]

Core Insights - El Pollo Loco Holdings reported revenue of $114.28 million for the quarter ended December 2024, marking a year-over-year increase of 1.8% and a surprise of +1.00% over the Zacks Consensus Estimate of $113.15 million [1] - The company achieved an EPS of $0.20, which is an increase from $0.16 a year ago, resulting in an EPS surprise of +53.85% compared to the consensus estimate of $0.13 [1] Financial Performance Metrics - Franchise advertising fee revenue was reported at $7.43 million, exceeding the three-analyst average estimate of $7.36 million, with a year-over-year change of +1.4% [4] - Franchise revenue reached $11.23 million, slightly above the estimated $11.17 million, representing a +2.5% change compared to the same quarter last year [4] - Company-operated restaurant revenue was $95.62 million, surpassing the average estimate of $94.62 million, reflecting a +1.8% year-over-year change [4] Stock Performance - Over the past month, shares of El Pollo Loco have returned -14.9%, in contrast to the Zacks S&P 500 composite's -3.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [3]

El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) Q4 2024 Earnings Conference Call March 6, 2025 4:30 PM ET Company Participants Ira Fils - CFO Liz Williams - CEO Conference Call Participants Todd Brooks - The Benchmark Company Larson Rice - Truist Tania Anderson - William Blair Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the El Pollo Loco Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded today, March 6, 2 ...

分组1 - El Pollo Loco Holdings reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.16 per share a year ago, resulting in an earnings surprise of 53.85% [1] - The company achieved revenues of $114.28 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1%, and up from $112.25 million year-over-year [2] - El Pollo Loco has outperformed consensus EPS estimates for four consecutive quarters and has topped consensus revenue estimates three times in the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 8.8% since the beginning of the year, compared to the S&P 500's decline of -0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $117.08 million, and for the current fiscal year, it is $0.95 on revenues of $491.64 million [7] - The Retail - Restaurants industry, to which El Pollo Loco belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance - Company-operated restaurant revenue for Q4 2024 increased to $95.6 million, up from $94.0 million in Q4 2023, reflecting a 1.6% increase in comparable restaurant revenue[5] - Total revenue for Q4 2024 was $114.3 million, compared to $112.2 million in Q4 2023, representing a year-over-year increase of 1.9%[6] - Net income for Q4 2024 was $6.0 million, or $0.20 per diluted share, compared to $4.4 million, or $0.14 per diluted share in Q4 2023, marking a 36.4% increase in net income[11] - Adjusted EBITDA for Q4 2024 was $14.3 million, an increase from $13.6 million in Q4 2023[6] - Total revenue for the thirteen weeks ended December 25, 2024, was $114,284,000, an increase from $112,247,000 for the same period in 2023, representing a growth of 1.8%[35] - Net income for the thirteen weeks ended December 25, 2024, was $5,953,000, up from $4,351,000 in the same period of 2023, indicating a growth of 37.0%[39] - Adjusted EBITDA for the thirteen weeks ended December 25, 2024, was $14,339,000, compared to $13,570,000 in the prior year, representing an increase of 5.7%[39] - The adjusted net income for the fifty-two weeks ended December 25, 2024, was $26.801 million, up from $24.526 million in 2023, reflecting a growth of 9.2%[45] Sales and Revenue Growth - System-wide comparable restaurant sales increased by 0.5% in Q4 2024, driven by a 9.0% increase in average check size, despite a 6.8% decrease in transactions[6][7] - Franchise revenue in Q4 2024 rose by 2.5% to $11.2 million, attributed to the opening of four new franchise-operated restaurants[8] - Comparable restaurant sales growth was 2.8% for the fifty-two weeks ended December 25, 2024, compared to 0.3% in the previous year[36] - Franchise revenue increased to $11,232,000 for the thirteen weeks ended December 25, 2024, from $10,956,000 in 2023, marking a growth of 2.5%[38] - System-wide sales for the thirteen weeks ended December 25, 2024, reached $262,248,000, compared to $257,619,000 in the same period of 2023, reflecting a growth of 1.0%[38] Expenses and Debt - General and administrative expenses for Q4 2024 were $11.1 million, up from $10.6 million in Q4 2023, primarily due to increased labor-related costs[10] - As of December 25, 2024, the company's outstanding debt was $71.0 million, with $2.5 million in cash and cash equivalents[12] - Total debt decreased to $71,000,000 as of December 25, 2024, down from $84,000,000 as of December 27, 2023[36] Restaurant Operations and Expansion - The company plans to open one to two new company-operated restaurants and eight to nine new franchised restaurants in 2025[13] - The number of company-operated restaurants at the end of the period increased to 173 from 172 in the previous year[36] - El Pollo Loco operates over 495 company-owned and franchised restaurants across seven U.S. states and has ten licensed locations in the Philippines[27] Strategic Focus and Risks - The company aims to expand its digital business, delivery orders, and catering services to enhance customer engagement[29] - The company is subject to various risks, including inflationary pressures and changes in consumer spending, which could impact financial performance[29] - The company faces challenges in opening new restaurants, including site selection and lease negotiations[29] Financial Reporting and Measures - El Pollo Loco utilizes non-GAAP financial measures such as System-wide sales and Adjusted EBITDA to evaluate operational performance[32] - The company is committed to transparency in its financial reporting, providing reconciliations of non-GAAP measures to GAAP measures[33] - El Pollo Loco's financial measures may not be directly comparable to those of other companies, highlighting the importance of context in financial analysis[33] Other Financial Details - The restaurant contribution margin for the thirteen weeks ended December 25, 2024, was 16.7%, compared to 15.8% in the same period of 2023, showing an improvement of 0.9 percentage points[46] - During the year ended December 25, 2024, the company recognized non-cash impairment charges of $0.1 million, primarily related to two restaurants in Nevada[41] - The company completed the sale of one restaurant in California for cash proceeds of $0.1 million during the year ended December 25, 2024, resulting in a net loss of less than $0.1 million[40] - In the year ended December 27, 2023, the company sold 18 restaurants for cash proceeds of $7.7 million, resulting in a net gain of $5.0 million[40] - Restructuring charges incurred in the year ended December 25, 2024, amounted to $551,000, while the previous year saw restructuring costs of $1.055 million[45] - The company recorded a loss on disposal of assets of $40,000 for the thirteen weeks ended December 25, 2024, compared to a loss of $226,000 for the same period in 2023[46]

Core Insights - El Pollo Loco Holdings, Inc. reported financial results for the 13- and 52-week periods ended December 25, 2024, highlighting a foundational year with significant progress and a positive outlook for 2025 [4][5]. Financial Performance - Company-operated restaurant revenue for Q4 2024 increased to $95.6 million, up from $94.0 million in Q4 2023, driven by a $1.5 million increase in comparable restaurant revenue (1.6%) and $0.5 million from new restaurant openings [5][9]. - Franchise revenue rose by 2.5% to $11.2 million, attributed to the opening of four franchise-operated restaurants and the sale of one company-operated restaurant to franchisees [6]. - Total revenue for Q4 2024 was $114.3 million, compared to $112.2 million in Q4 2023, with system-wide comparable restaurant sales increasing by 0.5% [9]. - Net income for Q4 2024 was $6.0 million ($0.20 per diluted share), compared to $4.4 million ($0.14 per diluted share) in Q4 2023 [10][9]. - Adjusted EBITDA for Q4 2024 was $14.3 million, an increase from $13.6 million in the previous year [9]. Operational Metrics - Income from operations in Q4 2024 was $9.0 million, up from $7.5 million in Q4 2023, with restaurant contribution at $16.0 million (16.7% of company-operated restaurant revenue) compared to $14.8 million (15.8%) in the prior year [7][9]. - General and administrative expenses increased to $11.1 million in Q4 2024 from $10.6 million in Q4 2023, primarily due to higher labor-related costs [8]. Debt and Shareholder Actions - As of December 25, 2024, the company had an outstanding debt balance of $71.0 million, with $2.5 million in cash and cash equivalents. The company repurchased 103,702 shares for approximately $1.3 million during the fourth quarter [11]. Future Outlook - The company anticipates opening one to two new company-operated restaurants and eight to nine new franchised restaurants in 2025, with capital spending projected between $30.0 million and $34.0 million [16].