El Pollo Loco(LOCO)
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El Pollo Loco(LOCO) - 2019 Q3 - Earnings Call Transcript
2019-11-01 01:15
Financial Data and Key Metrics Changes - Total revenue for Q3 2019 was $112.1 million, slightly down from $112.2 million in Q3 2018 [18] - Company-operated restaurant revenue decreased to $99.1 million from $100 million year-over-year, impacted by the sale of 11 restaurants and closure of 5 [18] - GAAP net income was $6.4 million or $0.18 per diluted share, compared to $6.8 million or $0.17 per diluted share in the prior year [23] - Pro forma net income for the quarter was $7.2 million, down from $7.6 million in Q3 2018 [23] Business Line Data and Key Metrics Changes - Franchise revenue increased by 9.1% to $7.3 million, driven by a 0.6% increase in comparable restaurant sales and the transfer of company-operated restaurants to franchisees [19] - Company-operated comparable restaurant sales grew by 1.6%, with a 2.0% increase in average check offset by a 0.4% decrease in transactions [18] Market Data and Key Metrics Changes - System-wide comparable restaurant sales growth was 1.1% for the quarter, with a notable 4.2% growth in September [5][18] - The company reported a system-wide sales figure of $227.95 million for the quarter [55] Company Strategy and Development Direction - The company is focusing on culinary innovation and has prioritized building a robust product pipeline for 2020 [9] - Expansion of delivery capabilities through partnerships with Postmates and Uber Eats, in addition to DoorDash, is a key strategy [6][10] - The company is simplifying operations to enhance employee and franchisee experiences, including a new inventory management system and streamlined operating procedures [11][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about continued sales momentum into Q4, driven by successful promotions and operational improvements [5][10] - The company anticipates commodity inflation of 1% to 2% and labor inflation of 6% to 6.5% in 2020 [20][25] - Management is committed to community support initiatives, including food donations to local shelters [14] Other Important Information - The company completed the sale of 5 company-operated restaurants in Dallas to an existing franchisee, which is expected to provide a margin benefit [25][43] - The company plans to open 2 to 3 new company-operated restaurants and 2 to 3 franchised restaurants in 2019 [17][25] Q&A Session Summary Question: Performance in September and October related to $5 bundle - Management attributed sales momentum to the $5 Fire-Grilled Combos promotion, expanded delivery capabilities, and operational improvements [30] Question: State of company-owned stores in Houston - Management confirmed commitment to Houston, with ongoing performance improvements, and indicated opportunistic franchisee transfers [32][33] Question: Delivery menu pricing strategy - Management explained a bifurcated delivery pricing strategy, retaining higher margins on direct orders while offering curated menus through third-party marketplaces [39] Question: Impact of Dallas restaurant sale on P&L - Management confirmed a margin benefit of approximately 50 basis points from the sale of the Dallas restaurants [45] Question: New market development plans - Management indicated plans to enter at least one new market in 2020, with ongoing work on restaurant design [36][46] Question: Customer feedback on delivery pricing - Management noted positive customer reception to delivery pricing, emphasizing convenience as a key factor [41] Question: Labor efficiency and cooking procedures - Management clarified that new cooking procedures aim to improve product quality and ease of execution without reducing labor [68]
El Pollo Loco(LOCO) - 2019 Q2 - Quarterly Report
2019-08-02 19:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share LOCO The NASDAQ Stock Market LLC FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 26, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Com ...
El Pollo Loco(LOCO) - 2019 Q2 - Earnings Call Transcript
2019-08-02 01:36
El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) Q2 2019 Earnings Conference Call August 1, 2019 4:30 PM ET Company Participants Larry Roberts - Chief Financial Officer Bernard Acoca - President & Chief Executive Officer Conference Call Participants Matthew DiFrisco - Guggenheim Jake Bartlett - SunTrust Andy Barish - Jefferies Sharon Zackfia - William Blair David Tarantino - Baird Operator Greetings. And welcome to El Pollo Loco Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a ...
El Pollo Loco(LOCO) - 2019 Q1 - Earnings Call Transcript
2019-05-03 00:32
Financial Data and Key Metrics Changes - For Q1 2019, total revenue increased by 3% to $109 million from $105.8 million in Q1 2018, driven by a 2.7% increase in company-operated restaurant sales to $97.2 million [19] - Pro forma EPS for the quarter was $0.15, compared to $0.17 in the prior year period [24] - GAAP net income was $913,000 or $0.02 per diluted share, down from $2.5 million or $0.06 per diluted share in the prior year [23] Business Line Data and Key Metrics Changes - Company-operated comparable restaurant sales increased by 1.5%, with a 4.6% increase in average check and a 3.1% decrease in transactions [19] - Franchise revenue increased by 5.5% to $6.4 million, driven by a 3.2% increase in franchise comparable restaurant sales [20] Market Data and Key Metrics Changes - The company experienced adverse weather conditions in California, impacting sales, with an estimated weather impact of slightly over one percentage point on comparable sales [34] - The company closed two restaurants while franchisees opened two new restaurants in California during the quarter [18] Company Strategy and Development Direction - The company is focused on a transformation agenda consisting of four key strategies: developing a people-first culture, differentiating the brand, simplifying operations, and growing the business responsibly and profitably [6][7] - A brand relaunch was initiated in early March, including a new logo and advertising campaign, with plans for a new mobile app and e-commerce site in Q3 [12][13] - The company aims to enter one or two new markets by 2020 and has sold four company-operated restaurants to franchisees to enhance growth in those areas [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in regaining traffic momentum with new promotions, despite challenges faced in Q1 [5][40] - The company expects systemwide comparable restaurant sales growth of approximately 2% to 4% for the full year [26] - Management noted that operational improvements from menu simplification are expected to enhance overall execution and customer experience [42][44] Other Important Information - The company had $6.7 million in cash and equivalents and $71.1 million in debt as of March 27, 2019 [25] - Capital expenditures for 2019 are expected to total between $14 million and $19 million [25] Q&A Session Summary Question: Can you discuss the traffic decline and its relation to menu simplification? - Management indicated that there was no degradation in transactions due to the menu simplification, which was tested extensively prior to rollout [30] Question: What was the impact of weather on sales? - Management estimated that weather had a slightly over one percentage point impact on comparable sales during the quarter [34] Question: How does refranchising affect margins? - Management confirmed that selling company-operated stores to franchisees would be accretive to margins [36] Question: What are the sales trends following weather issues? - Management noted that sales were flattish year-over-year entering April, with expectations for improved momentum as new promotions were launched [40][41] Question: What operational benefits have been seen from menu simplification? - Management reported improved food scores and better execution metrics as a result of reduced complexity in operations [44] Question: Is refranchising a broader strategy moving forward? - Management stated that while there are no immediate plans for further refranchising, they would consider opportunities if they arise [46]
El Pollo Loco(LOCO) - 2019 Q1 - Quarterly Report
2019-05-02 21:43
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share LOCO The NASDAQ Stock Market LLC FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 27, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Co ...
El Pollo Loco(LOCO) - 2018 Q4 - Annual Report
2019-03-08 22:31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 26, 2018 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36556 | --- | --- | |--------------------------------------------------------|------------------------------------------| | | | | LOC ...
El Pollo Loco(LOCO) - 2018 Q4 - Earnings Call Transcript
2019-03-08 00:51
El Pollo Loco Holdings (NASDAQ:LOCO) Q4 2018 Earnings Conference Call March 7, 2019 5:00 PM ET Company Participants Larry Roberts - CFO Bernard Acoca - President and CEO Conference Call Participants Jake Bartlett - SunTrust Robinson Humphrey Matthew DiFrisco - Guggenheim Securities David Tarantino - Robert W. Baird Sharon Zackfia - William Blair Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to El Pollo Loco Fourth Quarter 2018 Earnings Conference Call. At this time, all par ...