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El Pollo Loco Reports Modest Revenue Growth in Q4 2024

El Pollo Loco Reports Modest Revenue Growth in Q4 2024

El Pollo LoCo Holdings ( (LOCO) ) has released its Q4 earnings. Here is a breakdown of the information El Pollo LoCo Holdings presented to its investors.

El Pollo Loco Holdings, Inc., a leading fire-grilled chicken restaurant chain, operates over 495 locations across the United States and internationally. The company is known for its flavorful Mexican-inspired menu items and commitment to inclusivity within its workforce.

In its fourth quarter of 2024, El Pollo Loco reported a slight increase in total revenue, reaching $114.3 million compared to $112.2 million in the same period the previous year. The company also saw a modest growth in system-wide comparable restaurant sales by 0.5% and an increase in net income to $6.0 million, up from $4.4 million in the fourth quarter of 2023.

Key financial highlights include an increase in income from operations to $9.0 million and a rise in restaurant contribution to $16.0 million, reflecting improved operating efficiencies and higher menu prices. Franchise revenue also grew by 2.5%, attributed to the opening of new franchise-operated restaurants. The company managed to reduce its outstanding debt to $71.0 million while repurchasing shares worth approximately $1.3 million.

Looking ahead, El Pollo Loco plans to open additional company-operated and franchised restaurants in 2025, with capital spending projected between $30.0 million and $34.0 million. The company aims to continue its profitable growth trajectory, supported by a strong culinary pipeline and brand re-launch initiatives.

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Questions or Comments about the article? Write to editor@tipranks.com
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