For El Pollo Loco, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LOCO going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> El Pollo Loco is a member of th ...

El Pollo Loco Holdings, Inc. (LOCO) is benefiting from expansion efforts, same-store sales growth and operational efficiencies. However, commodity inflation and concern regarding traffic remain woes for the company. Factors Aiding LOCO's Growth Increased competition in the quick-service restaurant space, particularly from national brands offering aggressive discounting and promotions, puts pressure on LOCO's ability to maintain market share. Customers have been more price-sensitive, impacting transaction vo ...

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]