El Pollo LoCo Holdings ( (LOCO) ) has released its Q3 earnings. Here is a breakdown of the information El Pollo LoCo Holdings presented to its investors.
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El Pollo Loco Holdings, Inc. is a prominent chain in the fast-casual restaurant sector, known for its fire-grilled chicken and Mexican-inspired meals, operating over 495 locations primarily in the United States and a few in the Philippines.
In its third quarter of 2024 earnings report, El Pollo Loco Holdings announced maintaining steady total revenue of $120.4 million compared to the previous year. The company highlighted a 2.7% increase in system-wide comparable restaurant sales and improvements in restaurant-level margins.
Key financial metrics showed mixed results, with income from operations decreasing from $13.7 million to $10.1 million, while net income also saw a decline to $6.2 million from $9.2 million. However, there was a notable increase in restaurant contribution margin to 16.7% from 14.4%, attributed to higher menu prices and operating efficiencies. Franchise revenue rose by 10.5%, driven by increased comparable restaurant sales and strategic franchise expansions.
Despite the dip in net income, the company’s adjusted EBITDA improved slightly to $15.5 million, reflecting effective cost management and strategic initiatives. The company also managed to reduce its debt, with significant share repurchases indicating confidence in its financial health.
Looking ahead, El Pollo Loco is poised to continue its growth trajectory, with plans to open new company-owned and franchised restaurants in the remainder of 2024, setting a strong foundation for future expansion into 2025 and beyond.
