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El Pollo Loco Holdings, Inc. Announces First Quarter 2025 Financial Results
LOCOEl Pollo Loco(LOCO) GlobeNewswire·2025-05-01 20:05

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 98.4millioninQ12025,upfrom98.4 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 13.2million,primarilyduetoITpass−throughrevenuefromanewPointofSalesystemandfournewfranchise−operatedrestaurantopenings[6].−Totalrevenueforthefirstquarterwas13.2 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 116.2millioninthepreviousyear[8].−Netincomewas116.2 million in the previous year [8]. - Net income was 5.5 million, or 0.19perdilutedshare,downfrom0.19 per diluted share, down from 5.9 million, also 0.19perdilutedshare,inQ12024[10].OperationalMetrics−System−widecomparablerestaurantsalesdecreasedby0.60.19 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 13.9million,comparedto13.9 million, compared to 15.7 million in Q1 2024 [8]. Cost Structure - General and administrative expenses decreased to 11.3millionfrom11.3 million from 11.9 million, attributed to lower restructuring costs and a legal settlement [9]. - Labor and related expenses increased to 32.2million,accountingfor32.732.2 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].