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Sep 29, 2021

El Pollo Loco Q3 2021 Earnings Report

Announced financial results, demonstrating revenue growth and comparable restaurant sales increase.

Key Takeaways

El Pollo Loco Holdings, Inc. reported a revenue of $115.7 million, a system-wide comparable restaurant sales increase of 9.3%, and a net income of $10.2 million for the third quarter of 2021.

Total revenue was $115.7 million compared to $111.0 million.

System-wide comparable restaurant sales increased 9.3%.

Income from operations was $14.2 million compared to $12.2 million.

Net income was $10.2 million, or $0.28 per diluted share, compared to net income of $9.9 million, or $0.28 per diluted share.

Total Revenue
$116M
Previous year: $111M
+4.3%
EPS
$0.27
Previous year: $0.28
-3.6%
System-Wide Comp Sales
9.3%
Gross Profit
$27.5M
Previous year: $27.9M
-1.2%
Cash and Equivalents
$24.7M
Previous year: $29.5M
-16.4%
Free Cash Flow
$11.8M
Previous year: $20.6M
-42.4%
Total Assets
$604M
Previous year: $622M
-2.8%

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, but is updating expectations for accelerating costs and development delays.

Challenges Ahead

  • Accelerating commodity and labor costs will further pressure margins in the fourth quarter of 2021 relative to the third quarter of 2021.
  • Due to permitting and equipment delivery delays, we are lowering our 2021 development expectations to two to three company-owned and one to three franchise new restaurant openings versus our previous guidance of three to five new company-owned restaurants and four to six new franchised restaurants.
  • Pro forma income tax rate of 26.5%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income