LOCO

EL POLLO LOCO HOLDINGS INC

Consumer Cyclical | Small Cap

$0.25

EPS Forecast

$122.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-07-01

El Pollo Loco Clucks Up Strong Fourth Quarter Results

March 5, 2020

Fourth Quarter Financial Overview

El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) has served up a hearty plate of financial results for the fourth quarter of 2019, showcasing a robust performance that caught the attention of investors and analysts alike. The company reported a total revenue of $107.5 million, marking a modest increase from the $106.3 million reported for the same period in 2018. This growth is more than just a drop in the bucket; it's indicative of a focused strategy that appears to be resonating well with customers.

Net Income and Earnings Per Share

In a striking turn of events, El Pollo Loco achieved net income of $3.5 million, translating to earnings per share (EPS) of $0.10. This is a remarkable turnaround from a net loss of $23.4 million?or $0.60 per diluted share?recorded in the fourth quarter of the previous year. Notably, the prior year?s figures were marred by a hefty $36.3 million pre-tax expense linked to legal settlements, which added a layer of complexity to the year-over-year comparison.

Comparable Sales and Revenue Forecast

The company?s system-wide comparable restaurant sales climbed by 3.9%, driven by a 4.3% increase in company-operated restaurants and a 3.6% uptick in franchised locations. This earnings surprise has led analysts to reconsider their EPS consensus for the upcoming quarters. El Pollo Loco's performance not only reflects its operational resilience but also highlights a potential trend within the fast-casual dining sector, which has been grappling with broader market challenges.

Pro Forma and Adjusted EBITDA Insights

Pro forma net income for the quarter stood at $6.2 million?or $0.18 per diluted share?compared to $6.1 million?or $0.16 per diluted share?during the same quarter in 2018. Adjusted EBITDA remained steady at $14.5 million, signaling that El Pollo Loco is not just riding the waves but is also maintaining its financial footing in a turbulent industry landscape. These metrics provide a clearer picture of the company's financial health beyond standard GAAP measures, which can often obscure the underlying performance.

CEO Commentary and Future Outlook

Bernard Acoca, President and CEO of El Pollo Loco, expressed optimism about the company's trajectory, stating, "We closed 2019 on a high note, with our strongest system-wide comparable restaurant sales growth of the year at 3.9% during the quarter." His comments suggest that the company is not just looking back at a successful quarter but is also gearing up for future growth. As the restaurant industry continues to evolve, the strength of El Pollo Loco's brand and its operational strategies will be crucial in navigating the challenges that lie ahead.

In conclusion, El Pollo Loco's fourth quarter results paint a promising picture not just for the company but also for its peers in the fast-casual dining sector. As the company continues to build on its momentum, investors will be keenly watching how it manages to sustain its earnings growth and navigate the complexities of the market.