El Pollo Loco (LOCO) Tops Q3 EPS by 6c
El Pollo Loco (NASDAQ: LOCO) reported Q3 EPS of $0.28, $0.06 better than the analyst estimate of $0.22. Revenue for the quarter came in at $111 million versus the consensus estimate of $112.18 million.
System-wide comparable restaurant sales increased 1.8%, including a 0.2% increase for company-operated restaurants, and a 3.0% increase for franchised restaurants.
Bernard Acoca, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “Our third quarter results included a return to positive system-wide comparable sales and a continuation of improved operational efficiencies resulting in a 40% increase in pro forma diluted EPS and the highest restaurant contribution margin in over two years. I’d like to express how appreciative I am of the extraordinary efforts of our employees and franchisees, whose resilience and passion for our brand have been instrumental in navigating this unprecedented environment.”
Acoca continued, “While the COVID crisis will likely continue to present challenges, we remain excited about the progress we’ve made against our Transformation Agenda. Our culture and brand fundamentals are now well established and we are driving against our off-premise strategies. Our new product pipeline has never been stronger and our operations continue to improve as we institute systems and processes to ensure our guests have an exceptional experience at our restaurants. Lastly, as we finalize and test our new “restaurant of the future” during the fourth quarter, we believe we are laying the foundation for future sales and unit growth in our existing and new markets as we seek to expand in the years ahead.”
While market and economic conditions continue to be challenging due to the COVID 19 pandemic, based on current information, the Company provided the following limited outlook for the fourth quarter of 2020:
- System same store sales of approximately 1% - 2%.
- Restaurant contribution margin of 18.0% to 18.5%, which includes an estimated 60 bp negative impact from this year’s 53rd week.
- G&A spend of $9.6 million to $10 million excluding legal costs associated with the securities class action lawsuit.
For earnings history and earnings-related data on El Pollo Loco (LOCO) click here.