El Pollo Loco 2024 Financial Report Highlights and Insights
El Pollo Loco Holdings, Inc. Reports Financial Performance
El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) has recently shared its financial results for the year ending December 25, 2024. This announcement highlights the performance of the popular fire-grilled chicken chain in a competitive market environment.
Fourth Quarter Financial Highlights
During the fourth quarter, El Pollo Loco achieved total revenue of $114.3 million, marking an increase from the $112.2 million generated in the same quarter of the previous year. This growth in revenue reflects the brand's popularity and operational strategies put in place to attract customers.
Sales Performance
The system-wide comparable restaurant sales grew by 0.5%, underscoring the brand's resilience amid market fluctuations. The company-operated restaurant revenue also saw an increase, totaling $95.6 million, up from $94.0 million in the prior year. This was driven by a combination of higher average ticket prices and additional sales generated from new restaurant openings.
Operational Efficiency and Profitability
Investors will be pleased to note the improvements in operational efficiency. The income from operations was reported at $9.0 million in Q4, significantly higher than the $7.5 million achieved in Q4 2023. The restaurant contribution reached $16.0 million, equivalent to 16.7% of company-operated revenue, reinforcing the effectiveness of cost management strategies.
Net Income Growth
Net income also saw a commendable rise, coming in at $6.0 million or $0.20 per diluted share, compared to $4.4 million or $0.14 per diluted share a year prior. This signifies a robust growth trajectory for El Pollo Loco.
General and Administrative Expenses
General and administrative expenses increased to $11.1 million, primarily due to higher labor costs and management bonuses. However, the overall financial health of the company remained strong, enabling continued investment in critical operational areas.
Market Position and Future Outlook
Looking ahead, El Pollo Loco has ambitious plans for 2025. The company aims to open one to two new company-operated restaurants and eight to nine new franchised locations. This expansion is set alongside a capital spending forecast of $30 million to $34 million and G&A expenses between $48 million to $51 million for the year.
Key Financial Measures
El Pollo Loco utilizes several non-GAAP financial measures to provide a clearer picture of its operational performance. The Adjusted EBITDA for Q4 2024 was reported at $14.3 million compared to $13.6 million, further reflecting operational improvements and cost control efforts.
Significance of the Company’s Approach
According to Liz Williams, Chief Executive Officer, 2024 was a foundational year for the brand, with significant strides being made to strengthen its market position. The focus on culinary innovation and enhancing the customer experience remains a priority as the company aligns its goals for future growth.
Frequently Asked Questions
What were the main financial highlights for El Pollo Loco in 2024?
El Pollo Loco reported total revenue of $114.3 million and net income of $6.0 million or $0.20 per share in 2024, showing strong growth compared to 2023.
How did the restaurant contribution perform in the fourth quarter?
The restaurant contribution for Q4 was $16.0 million, representing 16.7% of revenue, indicating an improvement in operational efficiency.
What are the company’s plans for 2025?
El Pollo Loco plans to open up to two new company-operated restaurants and up to nine franchise locations while maintaining strong capital spending.
What factors contributed to increased operational income?
Increased average check sizes and operational efficiencies resulting in lower costs contributed to a rise in income from operations.
What is the outlook for El Pollo Loco in the current market?
The company is optimistic about its growth strategies, emphasizing culinary innovation and customer experience while expanding its restaurant footprint.
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