El Pollo Loco Q2 2021 Earnings Report
Key Takeaways
El Pollo Loco Holdings, Inc. announced strong second quarter results with a 22% increase in top line and a system-wide comparable restaurant sales growth of 14.8% compared to Q2 2019. The company leveraged sales improvements and labor efficiencies to achieve a 20.8% restaurant contribution margin.
Total revenue increased to $122.0 million from $99.6 million.
System-wide comparable restaurant sales increased by 21.0%.
Net income rose to $8.8 million, or $0.24 per diluted share, compared to $5.5 million, or $0.16 per diluted share.
Pro forma net income was $10.7 million, or $0.29 per diluted share, compared to $6.9 million, or $0.20 per diluted share.
El Pollo Loco
El Pollo Loco
El Pollo Loco Revenue by Segment
Forward Guidance
Due to the uncertainty surrounding the COVID-19 pandemic, the company is not yet providing a financial outlook for the year ending December 29, 2021. However, the company is reiterating the following expectations for 2021:
Positive Outlook
- The opening of three to five new company-owned restaurants
- The opening of four to six new franchised restaurants.
- Pro forma income tax rate of 26.5%.
Challenges Ahead
- Increased commodity costs during the second half of the year due to continuing supply chain challenges.
- Increased labor costs during the second half of the year due to continuing restaurant staffing challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income