El Pollo Loco (NASDAQ: LOCO) reported Q1 EPS of $0.17, in-line with the analyst estimate of $0.17. Revenue for the quarter came in at $100.7 million versus the consensus estimate of $103.28 million.

• Total revenue, excluding franchise advertising fee revenue, increased 0.9% to $100.7 million compared to $99.8 million in the same period of 2017. Including $5.1 million of franchise advertising fee revenue related to franchise advertising fund contributions, required as part of new accounting guidance implementation, total revenue increased 6.0% to $105.8 million.
• System-wide comparable restaurant sales decreased 1.1%, including a 2.0% decrease for company-operated restaurants, and a 0.4% decrease for franchised restaurants.
• Net income was $2.5 million, or $0.06 per diluted share, a decrease compared to net income of $4.9 million, or $0.12 per diluted share in the same period of 2017. First quarter of 2018 included a $2.8 million pre-tax expense related to the closure of two restaurants in Texas and the decision not to move forward with the development of a third location in Texas.
• Pro forma net income(1) was $6.7 million, or $0.17 per diluted share, compared to $6.1 million, or $0.16 per diluted share in the same period of 2017.
• Adjusted EBITDA(1) was $14.6 million, compared to $16.0 million in the same period of 2017.

2018 Outlook

Based on current information, the Company is maintaining its earnings guidance for the fiscal year 2018.

The Company expects 2018 pro forma diluted net income per share ranging from $0.68 to $0.73. This compares to pro forma diluted net income per share of $0.63 in 2017. Pro forma net income guidance for fiscal year 2018 is based, in part, on the following updated annual assumptions:

• System-wide comparable restaurant sales growth of approximately flat;
• The opening of 6-8 new company-owned restaurants and 6-8 new franchised restaurants;
• Restaurant contribution margin of 18.7% to 19.3%;
• G&A expenses of between 8.2% and 8.4% of total revenue excluding CEO transition costs and legal fees related to securities related litigation, and reflecting our change in accounting for franchise advertising fees;
• Pro forma income tax rate of 26.5%; and
• Adjusted EBITDA of between $61.0 and $64.0 million.

For earnings history and earnings-related data on El Pollo Loco (LOCO) click here.