El Pollo Loco Holdings Gears Up for Q4 Earnings: What's in Store?

Core Viewpoint - El Pollo Loco Holdings, Inc. is set to report its fourth-quarter 2024 results on March 6, 2025, with expectations of a mixed performance in earnings and revenue compared to the previous year [1][3]. Earnings Performance - The Zacks Consensus Estimate for fourth-quarter earnings is 13 cents per share, reflecting an 18.8% decrease from 16 cents reported a year ago [3]. - The company has consistently surpassed earnings estimates in the last four quarters, with an average beat of 26.1% [2]. Revenue Expectations - The consensus estimate for quarterly revenues is $113.2 million, indicating a slight increase of 0.8% from the prior-year figure [3]. - Revenue from company-operated restaurants is estimated at $95 million, up 1.1% year-over-year, while franchise revenues are pegged at $11.2 million, implying a 1.9% increase [5]. Factors Influencing Results - The anticipated revenue growth is attributed to menu innovation, competitive pricing, and marketing efforts, alongside a flexible unit expansion plan and remodeling initiatives [4]. - However, lower transaction volumes in December may have negatively impacted the company's top line [4]. Cost Considerations - Increased general and administrative expenses, particularly from labor-related costs and franchise expenses, are expected to adversely affect the bottom line [6]. - The company's cost-saving initiatives are anticipated to provide some benefits while maintaining food quality and enhancing guest experience [6]. Earnings Prediction Model - The current model does not predict an earnings beat for El Pollo Loco Holdings, with an Earnings ESP of 0.00% [7]. - The company holds a Zacks Rank of 2 (Buy), indicating a positive outlook despite the earnings prediction [8].