Core Insights - The article discusses the expertise of a specialized equity analyst in the restaurant sector, focusing on various dining segments in the U.S. market [1] Group 1: Company Overview - The company, Goulart's Restaurant Stocks, is dedicated to analyzing restaurant stocks across multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Group 2: Industry Engagement - The analyst actively participates in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions include columns on monetary policy, financial education, and financial modeling aimed at making these subjects accessible to a broader audience [1]

Revenue and Sales Performance - For the thirteen weeks ended March 26, 2025, total revenue was $119.2 million, with company-operated restaurant revenue at $98.4 million and franchise revenue at $20.8 million[153][154]. - For the thirteen weeks ended March 26, 2025, total revenue increased by $3.0 million, or 2.6%, to $119.2 million compared to $116.2 million for the same period in 2024[179]. - Company-operated restaurant revenue rose by $1.2 million, or 1.2%, primarily due to a 4.6% increase in average check size, despite a 3.8% decrease in transactions[180]. - Franchise revenue increased by $1.8 million, or 16.2%, driven by the rollout of a new Point of Sale (POS) system and the opening of four franchise-operated restaurants[181]. - System-wide sales reached $269.453 million for the quarter ended March 26, 2025, compared to $267.890 million for the same period in 2024, indicating a growth of approximately 0.6%[201]. Restaurant Operations - As of March 26, 2025, the company operated 174 company-operated restaurants and 325 franchised restaurants, totaling 499 locations[156]. - The company plans to complete 60-70 restaurant remodels in fiscal 2025, with an average investment of $0.3 million to $0.4 million per restaurant[157]. - The company opened two new company-operated restaurants in Nevada and two new franchised restaurants in California and Texas during fiscal 2024[151]. - Comparable restaurant sales for franchised restaurants decreased by 1.3% for the thirteen weeks ended March 26, 2025[155]. - Comparable restaurant sales growth was not explicitly stated, but the company operated 484 comparable restaurants as of March 26, 2025, compared to 478 a year earlier, suggesting a slight increase in the number of comparable locations[203]. Costs and Expenses - Labor costs are expected to increase due to California's new minimum wage law, which raises the minimum wage for fast food workers to $20 per hour starting April 1, 2024[145]. - The company anticipates ongoing inflationary pressures affecting food, labor, and construction costs, which may impact financial results[148][149]. - Food and paper costs decreased by $0.9 million, or 3.4%, with costs as a percentage of company-operated restaurant revenue at 25.2%, down from 26.4% in the prior year[183]. - Labor and related expenses increased by $1.6 million, or 5.2%, with labor costs as a percentage of company-operated restaurant revenue rising to 32.7% from 31.5%[184][185]. - Occupancy and other operating expenses increased by $1.8 million, or 7.6%, with these costs as a percentage of company-operated restaurant revenue at 26.1%, up from 24.6%[186][187]. - General and administrative expenses decreased by $0.7 million, or 5.6%, resulting in a percentage of total revenue of 9.5%, down from 10.3%[188][189]. - Franchise expenses rose by $1.8 million, or 17.4%, primarily due to IT pass-through expenses related to the new POS system[191]. Financial Performance - Net income for the quarter was $5.5 million, down from $5.9 million in the prior year, reflecting a decrease of $431,000 or 7.3%[179]. - EBITDA for the thirteen weeks ended March 26, 2025, was reported at $12.859 million, down from $13.530 million for the same period in 2024, reflecting a decrease of approximately 5%[215]. - Adjusted EBITDA for the same period was $13.925 million, compared to $15.699 million in the prior year, representing a decline of about 11.3%[215]. - The effective tax rate for the quarter ended March 26, 2025, was 29.7%, up from 27.1% for the quarter ended March 27, 2024[196]. Cash Flow and Financing - Net cash provided by operating activities decreased by approximately $6.4 million to $4.735 million for the thirteen weeks ended March 26, 2025, compared to $11.163 million in the prior year[221]. - For the thirteen weeks ended March 26, 2025, net cash used in investing activities increased by $0.7 million compared to the prior year, primarily due to increased purchases of property and equipment related to restaurant remodeling[222]. - Net cash used in financing activities changed by $5.7 million from the prior year, with share repurchases totaling $1.8 million compared to $1.2 million in the previous year[225]. - As of March 26, 2025, the company had $73.0 million in outstanding borrowings under the 2022 Revolver, with $66.7 million in borrowing availability[230]. - The interest rate range under the 2022 Revolver was 5.65% to 7.75% for the thirteen weeks ended March 26, 2025, compared to 6.92% to 6.96% for the same period in the prior year[229]. Market Conditions and Risks - Inflation has impacted costs related to food, labor, and general administrative expenses, although the company has managed to offset some increases through menu price adjustments[238]. - The company is exposed to market price fluctuations in food product prices, particularly chicken, which can materially impact food and beverage costs[239]. - The company recognized one-time costs of approximately $0.6 million related to the restructuring of certain positions in the organization[224].

Core Insights - El Pollo Loco is launching a comprehensive brand refresh on May 15, 2025, focusing on its Fire-Grilled Chicken offerings while enhancing its visual identity and customer experience [1][4][6] Brand Strategy - The brand refresh is part of a three-year turnaround strategy initiated by CEO Liz Williams since March 2024, which includes strengthening the leadership team and engaging a new creative agency, Innocean USA [2][6] - The new tagline "Let's Get Loco™" aims to connect with both new and existing customers, emphasizing the brand's heritage and passion [3][4] Customer Experience Enhancements - Updated consumer touchpoints will feature new color schemes, fonts, and layouts, creating a unified experience across digital and in-store platforms [4][5] - Over 200 restaurants have introduced kiosks for a more autonomous digital ordering experience, alongside traditional cashier services [5] Restaurant Design - A new restaurant prototype was unveiled in October 2024, showcasing a modern design while retaining key brand elements, aimed at enhancing visual identity and operational efficiency [5][6] Market Position - El Pollo Loco is recognized as the leading fire-grilled chicken restaurant in the U.S., with over 495 locations across seven states and international presence in the Philippines [7]

El Pollo Loco Holdings (LOCO) reported $119.18 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 2.6%. EPS of $0.19 for the same period compares to $0.22 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $118.46 million, representing a surprise of +0.61%. The company delivered an EPS surprise of -5.00%, with the consensus EPS estimate being $0.20.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

El Pollo Loco Holdings (LOCO) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5%. A quarter ago, it was expected that this Tex-Mex fast food chain would post earnings of $0.13 per share when it actually produced earnings of $0.20, delivering a surprise of 53.85%.Over the last four qu ...

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $119.2 million, up from $116.2 million in Q1 2024, representing a 1.7% increase [19] - Company-operated restaurant revenue increased by 1.2% to $98.4 million, driven by a 0.6% increase in comparable restaurant sales and additional sales from two new restaurant openings [19] - The effective price increase was approximately 4.4% compared to 2024 [20] - GAAP net income for Q1 2025 was $5.5 million, or $0.19 per diluted share, compared to $5.9 million, or $0.19 per diluted share in the prior year [26] Business Line Data and Key Metrics Changes - Franchise revenue increased by 16.2% to $13.2 million, driven by IT pass-through revenue related to a new point of sale system and new franchise openings [20] - Comparable restaurant sales decreased by 1.3% for franchise-operated restaurants [20] Market Data and Key Metrics Changes - System-wide comparable store sales decreased by 1.2% in Q2 to date, with a 0.1% decrease in company-operated restaurants and a 1.8% decrease in franchise restaurants [21] Company Strategy and Development Direction - The company is focused on a brand turnaround, emphasizing long-term sustainable growth without shortcuts [5] - Upcoming initiatives include a brand relaunch and menu innovations, such as the launch of Fresca wraps and salads, and quesadillas [6][8] - The company aims to open at least 10 new restaurants in 2025, marking the largest system-wide unit growth since 2022 [14][15] - Remodeling efforts are ongoing, with plans to remodel 60 to 70 restaurants in partnership with franchisees [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging consumer environment but remains confident in the brand's long-term potential [6] - The company expects sequential quarterly acceleration in comparable sales trends in Q3 and Q4, driven by the brand relaunch and new product launches [22] - Wage inflation is anticipated to be between 4% to 5% for the year, with Q1 experiencing a 12% increase [23][24] Other Important Information - The company has transitioned to a new distribution partner, which is expected to enhance margins and support future growth [14] - The restaurant contribution margin for Q1 was 16%, down from 17.6% in the previous year, primarily due to labor inflation and occupancy costs [24][25] - General and administrative expenses decreased to 9.5% of total revenue, aided by prior year restructuring costs [26] Q&A Session Summary Question: Expectations for Q2 same store sales - Management noted that consumer pullback is real and expects headwinds to continue into Q2, but is focused on brand relaunch and value innovation [32][33] Question: Impact of new product launches on comp trends - The Mango Habanero product drove initial trial, and upcoming launches of Fresca wraps and quesadillas are expected to attract different consumer segments [36][38] Question: Timing of kitchen equipment rollout and labor cost impact - Equipment rollout is ongoing, with expectations of improved labor efficiency as new systems are implemented [41] Question: Regional differences in consumer behavior - Management observed similar consumer pullback across markets, with particular pressure on the Hispanic consumer segment [50][51] Question: Menu pricing expectations for the year - The company expects menu price increases to be around 3% for the year, with variations across quarters [52] Question: Development pipeline momentum - Management expressed optimism about the development pipeline, with confidence in opening at least 10 new units this year and potential for more in the following year [59][60]

Exhibit 99.1 El Pollo Loco Holdings, Inc. Announces First Quarter 2025 Financial Results COSTA MESA, CA – May 1, 2025 – El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended March 26, 2025. Highlights for the first quarter ended March 26, 2025 compared to the first quarter ended March 27, 2024 were as follows: -------------------- (1) System-wide comparable restaurant sales, restaurant contribution, adjusted net income and adjusted EBITDA are not presente ...

Core Insights - El Pollo Loco Holdings, Inc. reported financial results for the first quarter of 2025, indicating challenges in sales and store-level profit despite some positive developments in brand initiatives [4][8]. Financial Performance - Company-operated restaurant revenue increased to $98.4 million in Q1 2025, up from $97.2 million in Q1 2024, driven by a 0.6% rise in comparable restaurant revenue and additional sales from two new restaurant openings [5]. - Franchise revenue rose by 16.2% to $13.2 million, primarily due to IT pass-through revenue from a new Point of Sale system and four new franchise-operated restaurant openings [6]. - Total revenue for the first quarter was $119.2 million, compared to $116.2 million in the previous year [8]. - Net income was $5.5 million, or $0.19 per diluted share, down from $5.9 million, also $0.19 per diluted share, in Q1 2024 [10]. Operational Metrics - System-wide comparable restaurant sales decreased by 0.6% [8]. - Restaurant contribution was $15.8 million, representing 16.0% of company-operated restaurant revenue, down from 17.6% in the previous year, largely due to increased labor costs from a minimum wage hike in California [7][8]. - Adjusted EBITDA for the quarter was $13.9 million, compared to $15.7 million in Q1 2024 [8]. Cost Structure - General and administrative expenses decreased to $11.3 million from $11.9 million, attributed to lower restructuring costs and a legal settlement [9]. - Labor and related expenses increased to $32.2 million, accounting for 32.7% of total revenue, compared to 31.5% in the previous year [34]. Future Outlook - The company plans to open 10 to 11 new restaurants in 2025, with capital spending projected between $30 million and $34 million [15]. - The estimated effective income tax rate for 2025 is expected to be between 29.0% and 29.5% [15].

Core Viewpoint - El Pollo Loco Holdings, Inc. will host a conference call to discuss its first quarter 2025 financial results on May 1, 2025, at 4:30 PM Eastern Time, led by CEO Liz Williams and CFO Ira Fils [1]. Group 1: Conference Call Details - The conference call can be accessed live by dialing 201-493-6780, with a replay available until May 15, 2025, by dialing 412-317-6671 using passcode 13752366 [2]. - The conference call will also be webcast live on the company's corporate website under the "Events & Presentations" page, with an archive available shortly after the call [3]. Group 2: Company Overview - El Pollo Loco is a leading fire-grilled chicken restaurant in the U.S., known for its flavorful and healthier offerings, with a menu featuring innovative meals made daily using quality ingredients [4]. - The company operates over 495 company-owned and franchised restaurants across seven U.S. states and has eight licensed locations in the Philippines, reflecting its successful expansion since 1980 [4].

Shares of El Pollo Loco Holdings, Inc. (LOCO) have declined 23.5% over the past six months compared with the Zacks Retail – Restaurants industry’s fall of 8.7%. The stock has underperformed the Zacks Retail-Wholesale sector’s and the S&P 500’s decline of 9% and 13.5%, respectively.Investor sentiment surrounding El Pollo Loco has been weighed down by escalating macroeconomic uncertainty, including concerns over new tariff impacts, recession risks and margin pressures across the restaurant industry.LOCO's 6-M ...