El Pollo Loco(US:LOCO)2025-10-30 20:08Revenue Performance - Company-operated restaurant revenue for Q3 2025 was $100.7 million, a decrease of 0.5% from $101.2 million in Q3 2024[3] - Total revenue increased to $121.5 million, up from $120.4 million year-over-year[3] - System-wide comparable restaurant sales decreased by 0.8%[3] - Total revenue for the thirteen weeks ended September 24, 2025, was $121.52 million, a slight increase from $120.40 million for the same period in 2024, representing a growth of 0.9%[33] - Company-operated restaurant revenue was $100.72 million, accounting for 82.9% of total revenue, compared to $101.18 million (84.0%) in the prior year[33] - Franchise revenue increased to $12.86 million (10.6% of total revenue) from $11.33 million (9.4%) year-over-year[33] - Total revenue for the thirty-nine weeks ended September 24, 2025, reached $366,531,000, compared to $358,724,000 for the same period in 2024, indicating a 2.2% growth[41] Net Income and Earnings - Net income for Q3 2025 was $7.4 million, or $0.25 per diluted share, compared to $6.2 million, or $0.21 per diluted share in Q3 2024[8] - Adjusted net income was $7.8 million, or $0.27 per diluted share, compared to $6.3 million, or $0.21 per diluted share in the prior year[8] - Net income for the thirteen weeks ended September 24, 2025, was $7.36 million, up from $6.19 million in the same period last year, reflecting a growth of 18.9%[33] - Adjusted net income for the thirty-nine weeks ended September 24, 2025, was $21,588,000, compared to $20,898,000 for the same period in 2024, a 3.3% increase[40] Operational Metrics - Restaurant contribution was $18.5 million, representing 18.3% of company-operated restaurant revenue, up from 16.7% in Q3 2024[6] - Comparable restaurant sales growth for company-operated restaurants was 0.2%, a decline from 3.2% in the prior year[34] - Adjusted EBITDA for the thirteen weeks ended September 24, 2025, was $17,418,000, compared to $15,452,000 for the same period in 2024, representing a 12.7% increase[37] - Restaurant contribution margin for the thirteen weeks ended September 24, 2025, was 18.3%, compared to 16.7% in the same period of 2024, showing an improvement of 1.6 percentage points[41] Debt and Cash Position - As of September 24, 2025, the company's outstanding debt was $61.0 million, with $10.9 million in cash and cash equivalents[9] - Total debt decreased to $61.00 million from $71.00 million, reflecting a reduction of 14.1%[34] - Cash and cash equivalents as of September 24, 2025, were $10.87 million, significantly higher than $2.48 million as of December 25, 2024[34] Future Plans and Expansion - The company plans to open at least ten new system-wide restaurants in 2025[11] - Capital spending is expected to be between $28.0 million and $30.0 million for the remainder of 2025[11] Challenges and Risks - Forward-looking statements indicate potential risks including competition, economic conditions, and supply chain challenges[26][27] - The company faces challenges related to labor costs and regulatory compliance impacting its operations[28] - Risks include potential liabilities from environmental laws and the impact of government regulations[28] Company Overview - El Pollo Loco operates over 495 company-owned and franchised restaurants across seven U.S. states and has eight licensed locations in the Philippines[25] - The company emphasizes inclusivity with a workforce of over 4,000 employees[25] - The company aims to expand its digital business, delivery orders, and catering services[27] - El Pollo Loco's financial performance is subject to fluctuations due to seasonality and economic factors[28] - There is a focus on achieving social and environmental sustainability goals[28] - The company has a commitment to transparency regarding its financial condition and operational results[30] - Non-GAAP financial measures such as System-wide sales and Adjusted EBITDA are used to evaluate operational performance[30][31]