El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced
financial results for the 13-week period ended
December 28, 2022.
Highlights for the fourth quarter ended
December 28, 2022 compared to the fourth quarter ended
December 29, 2021 were as follows:
- Total revenue was
$115.9 million compared to $109.0 million.
- System-wide comparable
restaurant sales(1)
increased 4.7%.
- Income from
operations was $9.5 million compared to $8.4 million.
- Restaurant
contribution(1) was $14.7 million, or
14.7% of company-operated restaurant revenue, compared to $14.7
million, or 15.7% of company-operated restaurant revenue.
- Net income was
$6.5 million, or $0.18 per diluted share, compared to net
income of $6.2 million, or $0.17 per diluted share.
- Adjusted net
income(1) was $6.0
million, or $0.16 per diluted share, compared to $6.1
million, or $0.17 per diluted share.
- Adjusted
EBITDA(1) was $13.3
million, compared to $12.7 million.
(1) System-wide
comparable restaurant sales, restaurant contribution, adjusted net
income and adjusted EBITDA are not presented in accordance with
accounting principles generally accepted in the United States of
America (“GAAP”) and are defined below under “Key Financial
Definitions.” A reconciliation of these non-GAAP financial measures
to the most directly comparable GAAP financial measure is included
in the accompanying financial data. See also “Non-GAAP Financial
Measures.”
Larry Roberts, Chief Executive Officer of El
Pollo Loco Holdings, Inc., stated, “We are pleased with our
fourth quarter results, driven by the improvement in both our
Company-operated and franchise restaurant operations and the
success of our Stuffed Quesadilla promotion. These resulted in a
system-wide comparable sales increase of 4.7%, with solid
comparable sales growth at both company-owned and franchise
restaurants. We are especially pleased by the continued improvement
in both our brand tracker and internal customer service metrics,
which achieved their highest levels during 2022 in the fourth
quarter. While unfavorable weather is proving to be a headwind in
the first quarter of 2023, we remain confident that the sales
building initiatives we are implementing in 2023 will be successful
in delivering higher revenues and profits. These include the
continued improvement in system restaurant operations, a marketing
calendar featuring innovative new products, a new advertising
campaign that will drive our differentiation with new energy, the
launch of a revamped app and loyalty program and the development of
new sales platforms including catering and desserts. In addition,
we continue to attract new franchisees into our system and look
forward to partnering with them and our existing franchisees as we
continue our asset light expansion into new markets.”
Fourth Quarter 2022 Financial Results
Company-operated restaurant revenue in the
fourth quarter of 2022 increased to $99.6 million, compared to
$93.6 million in the fourth quarter of 2021, primarily due to an
increase in company-operated comparable restaurant revenue of $6.0
million, or 6.5%. The company-operated comparable restaurant sales
increase consisted of an approximately 7.3% increase in average
check size due to increases in menu prices, partially offset by a
0.8% decrease in transactions. In addition, company-operated
restaurant revenue was favorably impacted by $1.7 million of
additional sales from restaurants opened during or after the fourth
quarter of 2021. This company-operated restaurant sales increase
was partially offset by a $1.2 million decrease in revenue from the
closure of three restaurants and
from three company-operated restaurants sold by the
Company to existing franchisee during or subsequent to the fourth
quarter of 2021.
Franchise revenue in the fourth quarter of 2022
increased 6.3% to $9.4 million, compared to $8.8 million in the
fourth quarter of 2021. This increase was primarily due to a
franchise comparable restaurant sales increase of 3.5%, the
Company’s sale of three company-operated restaurants to an existing
franchisee and the opening of eleven restaurants, in each case,
during or subsequent to the fourth quarter of 2021. This franchise
revenue increase was partially offset by the closure of two
franchise locations during or subsequent to the fourth quarter of
2021.
Income from operations in the fourth quarter of
2022 was $9.5 million, compared to $8.4 million in the fourth
quarter of 2021. Restaurant contribution was $14.7 million, or
14.7% of company-operated restaurant revenue, compared to $14.7
million, or 15.7% of company-operated restaurant revenue in the
fourth quarter of 2021. The decrease in restaurant contribution as
a percentage of company-operated restaurant revenue was largely due
to the impact of wage increases, commodity inflation and higher
operating costs, partially offset by higher menu prices.
General and administrative expenses in the
fourth quarter of 2022 were $9.6 million, compared to $9.5 million
in the fourth quarter of 2021. The increase for the quarter was
primarily due to a $0.3 million increase in legal settlement
expense, $0.1 million increase in recruiting expenses and a $0.2
million increase in other general and administrative expenses,
offset by a $0.5 million decrease in labor related costs, primarily
related to a decrease in management bonus expense.
Net income for the fourth quarter of 2022
was $6.5 million, or $0.18 per diluted share,
compared to net income of $6.2 million, or $0.17 per
diluted share, in the fourth quarter of 2021. Adjusted net income
was $6.0 million, or $0.16 per diluted share, during the
fourth quarter of 2022, compared to $6.1 million,
or $0.17 per diluted share, during the fourth quarter of
2021.
During the fourth quarter, after drawing $46.0
million on its five-year senior-secured revolving credit facility
the Company’s outstanding debt balance was $66.0 million with $20.5
million in cash and cash equivalents as of
December 28, 2022.
Subsequent Events
Subsequent to year-end, the Company paid down
$8.0 million on its 2022 Revolver and outstanding borrowings as of
March 9, 2023 were $58.0 million.
2023 Outlook
The Company is providing the following expectations for
2023:
- The opening of four to six new
company-owned restaurants and eight to twelve new franchised
restaurants.
- Capital spend of $27.0 - $31.0 million.
- G&A expense between $42.0 and $45.0 million.
- Adjusted income tax rate of
26.5%.
Definition of Non-GAAP and other Key Financial
Measures
System-wide sales are neither
required by, nor presented in accordance with, GAAP. System-wide
sales are the sum of company-operated restaurant revenue and sales
from franchised restaurants. The Company’s total revenue in the
consolidated statements of income is limited to company-operated
restaurant revenue and franchise revenue from the Company’s
franchisees. Accordingly, system-wide sales should not be
considered in isolation or as a substitute for our results as
reported under GAAP. Management believes that the presentation of
system-wide sales provides useful information to investors because
it is a measure that is widely used in the restaurant industry,
including by our management, to evaluate brand scale and market
penetration.
Comparable restaurant sales
reflect the change in year-over-year sales for the comparable
company, franchised and total system restaurant base. The
comparable restaurant base is defined to include those restaurants
open for 15 months or longer and excludes restaurants that
were closed during the applicable period. At
December 28, 2022, there were 184 restaurants in our
comparable company-operated restaurant base and 460 restaurants in
our comparable system restaurant base. Because other companies may
calculate this measure differently than we do, comparable
restaurant sales as presented herein may not be comparable to
similarly titled measures reported by other companies. Management
believes that comparable restaurant sales is a valuable metric for
investors to evaluate the performance of our store base, excluding
the impact of new stores and closed stores.
Restaurant contribution and
restaurant contribution margin are neither
required by, nor presented in accordance with, GAAP. Restaurant
contribution is defined as company-operated restaurant revenue less
company restaurant expenses, which includes food and paper costs,
labor and related expenses, and occupancy and other operating
expenses. Restaurant contribution therefore excludes franchise
revenue, franchise advertising fee revenue and franchise expenses
as well as certain other costs, such as general and administrative
expenses, franchise expenses, depreciation and amortization, asset
impairment and closed-store reserves, loss on disposal of assets
and other costs that are considered corporate-level expenses and
are not considered normal operating costs of our restaurants.
Accordingly, restaurant contribution is not indicative of overall
Company results and does not accrue directly to the benefit of
shareholders because of the exclusion of certain corporate-level
expenses. Restaurant contribution margin is defined as restaurant
contribution as a percentage of net company-operated
restaurant revenue. Additionally, because other companies may
calculate these measures differently than we do, restaurant
contribution and restaurant contribution margin as presented herein
may not be comparable to similarly titled measures reported by
other companies. Management uses restaurant contribution and
restaurant contribution margin as a supplemental measure of
restaurant performance. Management believes restaurant level
operating margin is useful to investors to highlight trends in our
core business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures.
EBITDA and adjusted
EBITDA are neither required by, nor presented in
accordance with, GAAP. EBITDA represents net income before interest
expense, provision for income taxes, depreciation, and
amortization, and adjusted EBITDA represents EBITDA before items
that we do not consider representative of our underlying operating
performance, as identified in the reconciliation table included
under “Unaudited Reconciliation of Net Income to EBITDA and
Adjusted EBITDA” in the accompanying financial tables at the end of
this release. Because other companies may calculate these measures
differently than we do, EBITDA and adjusted EBITDA as presented
herein may not be comparable to similarly titled measures reported
by other companies. Management uses EBITDA and adjusted EBITDA as
supplemental measures of our operating performance. Management
believes these measures provide useful information to investors
about our operational performance by highlighting trends in our
core business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures and enabling investors to
more effectively compare the Company’s performance to prior and
future periods.
Adjusted net income is
neither required by, nor presented in accordance with, GAAP.
Adjusted net income represents net income adjusted for
(i) costs (or gains) related to loss (or gains) on disposal of
assets or assets held for sale and asset impairment and closed
store costs reserves, (ii) amortization expense and other
estimate adjustments (whether expense or income) incurred on the
Tax Receivable Agreement (“TRA”) completed at the time of our IPO,
(iii) legal costs associated with securities class action
litigation, (iv) extraordinary legal settlement costs,
(v) insurance proceeds received related to securities class
action legal expenses and (vi) provision for income taxes at a
normalized tax rate of 26.5% for the thirteen and fifty-two
weeks ended December 28, 2022 and
December 29, 2021, which reflects our estimated long-term
effective tax rate, including both federal and state income taxes
(excluding the impact of the income tax receivable agreement and
valuation allowance) and applied after giving effect to the
foregoing adjustments. Because other companies may calculate these
measures differently than we do, adjusted net income as presented
herein may not be comparable to similarly titled measures reported
by other companies. Management believes adjusted net income is an
important supplement to GAAP measures that enhances the overall
understanding of our operating performance and long-term
profitability, and enables investors to more effectively compare
the Company’s performance to prior and future periods.
Conference Call
The Company will host a conference call to
discuss financial results for the fourth quarter of 2022 today at
4:30 PM Eastern Time. Larry Roberts, Chief Executive Officer, and
Ira Fils, Chief Financial Officer, will host the call.
The conference call can be accessed live over
the phone by dialing 201-493-6780. A replay will be available after
the call and can be accessed by dialing 412-317-6671; the passcode
is 13735810. The replay will be available until Thursday, March 23,
2023. The conference call will also be webcast live from the
Company’s corporate website at investor.elpolloloco.com under the
“Events & Presentations” page. An archive of the webcast
will be available at the same location on the corporate website
shortly after the call has concluded.
About El Pollo Loco
El Pollo Loco (Nasdaq:LOCO) is the nation’s
leading fire-grilled chicken restaurant chain renowned for its
masterfully citrus-marinated, fire-grilled chicken and handcrafted
entrees using fresh ingredients inspired by Mexican recipes. With
more than 485 company-owned and franchised restaurants in Arizona,
California, Nevada, Colorado, Texas, Utah, and Louisiana, El Pollo
Loco is expanding its presence in key markets through a combination
of company and existing and new franchisee development. Visit us on
our website at ElPolloLoco.com.
Forward-Looking Statements
This press release contains forward-looking
statements that are subject to risks and uncertainties. All
statements other than statements of historical fact included in
this press release are forward-looking statements. Forward-looking
statements discuss our current expectations and projections
relating to our financial condition, results of operations, plans,
objectives, future performance and business. You can identify
forward-looking statements because they do not relate strictly to
historical or current facts. These statements may include words
such as “aim,” “anticipate,” “believe,” “estimate,” “expect,”
“forecast,” “outlook,” “potential,” “project,” “projection,”
“plan,” “intend,” “seek,” “may,” “could,” “would,” “will,”
“should,” “can,” “can have,” “likely,” the negatives thereof and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events. They appear in a number of places
throughout this press release and include our 2023 outlook and
statements regarding our ability to improve growth and
profitability in the current challenging macroeconomic environment,
as well as our ongoing business intentions, beliefs or current
expectations concerning, among other things, our results of
operations, financial condition, sales levels, liquidity,
prospects, growth, strategies and the industry in which we operate.
All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those that we expected.
While we believe that our assumptions are
reasonable, we caution that it is very difficult to predict the
impact of known factors, and it is impossible for us to anticipate
all factors that could affect our actual results. All
forward-looking statements are expressly qualified in their
entirety by these cautionary statements. You should evaluate all
forward-looking statements made in this press release in the
context of the risks and uncertainties that could cause outcomes to
differ materially from our expectations. These factors include, but
are not limited to: the impacts of the ongoing COVID-19 pandemic or
any future pandemic, epidemic or public health emergency on our
company, our employees, our customers, our partners, our industry
and the economy as a whole, as well as our franchisees’ ability to
maintain operations in their individual restaurants; global
economic or other business conditions that may affect the desire or
ability of our customers to purchase our products such as
inflationary pressures, high unemployment levels, increases in gas
prices, rising interest rates, and declines in median income
growth, consumer confidence and consumer discretionary spending;
our ability to open new restaurants in new and existing markets,
including difficulty in finding sites and in negotiating acceptable
leases; our ability to open new restaurants, establish new markets
or compete successfully with other quick-service and fast casual
restaurants; vulnerability to changes in consumer preferences and
political and economic conditions; our ability to attract, develop
and retain employees; vulnerability to conditions in the greater
Los Angeles area and to natural disasters given the geographic
concentration and real estate intensive nature of our business; our
ability to effectively identify and secure appropriate sites for
new restaurants; the possibility that we may continue to incur
significant impairment of certain of our assets, in particular in
our new markets; changes in food and supply costs, especially for
chicken; social media and negative publicity, whether or not valid,
and our ability to respond to and effectively manage the
accelerated impact of social media; our ability to continue to
expand our digital business, delivery orders and catering; and
other risks set forth in our filings with the Securities and
Exchange Commission from time to time, including under
Item 1A, Risk Factors in our annual report on Form 10-K
for the year ended December 29, 2021, as such risk
factors may be amended, supplemented or superseded from time to
time by other reports we file with the Securities and Exchange
Commission, all of which are or will be available online at
www.sec.gov.
We caution you that the important factors
referenced above may not contain all of the factors that are
important to you. In addition, we cannot assure you that we will
realize the results or developments we expect or anticipate or,
even if substantially realized, that they will result in the
consequences we anticipate or affect us or our operations in the
ways that we expect. The forward-looking statements included in
this press release are made only as of the date hereof. We
undertake no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as required by law. If we do update one
or more forward-looking statements, no inference should be made
that we will make additional updates with respect to those or other
forward-looking statements. We qualify all of our forward-looking
statements by these cautionary statements.
Non-GAAP Financial Measures
To supplement our consolidated financial
statements, which are prepared and presented in accordance with
GAAP, we use the following non-GAAP financial measures that are
supplemental measures of the operating performance of our business
and restaurants: System-wide sales, Restaurant contribution and
restaurant contribution margin, EBITDA and adjusted EBITDA, and
Adjusted net income. Our calculations of these non-GAAP financial
measures may not be comparable to those reported by other
companies. These measures have limitations as analytical tools, and
are not intended to be considered in isolation or as substitutes
for, or superior to, financial measures prepared and presented in
accordance with GAAP. We use non-GAAP financial measures for
financial and operational decision-making and as a means to
evaluate period-to-period comparisons and to evaluate our
restaurants’ financial performance against our competitors’
performance. We believe these measures they provide useful
information about our operating results, enhance understanding of
past performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. These non-GAAP financial
measures may also assist investors in evaluating our business and
performance relative to industry peers and provide greater
transparency with respect to the Company’s financial condition and
results of operation.
Additional information about these non-GAAP
financial measures (System-wide sales, Restaurant contribution and
restaurant contribution margin, EBITDA and adjusted EBITDA, and
Adjusted net income) is provided under “Definitions of Non-GAAP and
other Key Financial Measures” above. For a reconciliations of each
of these non-GAAP financial measures to the most directly
comparable GAAP financial measure, see “Unaudited Reconciliation of
System-Wide Sales to Company-Operated Restaurant Revenue and Total
Revenue,” “Unaudited Reconciliation of Net Income to EBITDA and
Adjusted EBITDA,” “Unaudited Reconciliation of Net Income to
Adjusted Net Income” and “Unaudited Reconciliation of Income from
Operations to Restaurant Contribution” in the accompanying
financial tables at the end of this press release.
Investor Contact:Jeff
PriesterICRInvestors@elpolloloco.com
Media Contact:Carmen Hernandez
EdibleEPL.Media@Edible-Inc.com
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME(in thousands, except share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 28, 2022 |
|
December 29, 2021 |
|
December 28, 2022 |
|
December 29, 2021 |
|
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated restaurant revenue |
|
$ |
99,633 |
|
|
85.9 |
|
|
$ |
93,616 |
|
|
85.9 |
|
|
$ |
403,218 |
|
|
85.8 |
|
|
$ |
394,733 |
|
86.9 |
Franchise revenue |
|
|
9,363 |
|
|
8.1 |
|
|
|
8,810 |
|
|
8.1 |
|
|
|
38,225 |
|
|
8.1 |
|
|
|
33,729 |
|
7.4 |
Franchise advertising fee
revenue |
|
|
6,926 |
|
|
6.0 |
|
|
|
6,531 |
|
|
6.0 |
|
|
|
28,516 |
|
|
6.1 |
|
|
|
25,901 |
|
5.7 |
Total revenue |
|
|
115,922 |
|
|
100.0 |
|
|
|
108,957 |
|
|
100.0 |
|
|
|
469,959 |
|
|
100.0 |
|
|
|
454,363 |
|
100.0 |
Costs of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Food and paper cost (1) |
|
|
28,188 |
|
|
28.3 |
|
|
|
25,423 |
|
|
27.2 |
|
|
|
117,774 |
|
|
29.2 |
|
|
|
104,394 |
|
26.4 |
Labor and related expenses (1) |
|
|
31,807 |
|
|
31.9 |
|
|
|
30,248 |
|
|
32.3 |
|
|
|
130,773 |
|
|
32.4 |
|
|
|
120,308 |
|
30.5 |
Occupancy and other operating expenses (1) |
|
|
24,946 |
|
|
25.0 |
|
|
|
23,269 |
|
|
24.8 |
|
|
|
101,543 |
|
|
25.2 |
|
|
|
97,557 |
|
24.7 |
Company restaurant expenses (1) |
|
|
84,941 |
|
|
85.2 |
|
|
|
78,940 |
|
|
84.3 |
|
|
|
350,090 |
|
|
86.8 |
|
|
|
322,259 |
|
81.6 |
General and administrative
expenses |
|
|
9,605 |
|
|
8.3 |
|
|
|
9,498 |
|
|
8.7 |
|
|
|
39,093 |
|
|
8.3 |
|
|
|
39,852 |
|
8.8 |
Franchise expenses |
|
|
8,854 |
|
|
7.6 |
|
|
|
8,374 |
|
|
7.7 |
|
|
|
36,169 |
|
|
7.7 |
|
|
|
32,831 |
|
7.2 |
Depreciation and
amortization |
|
|
3,673 |
|
|
3.2 |
|
|
|
3,637 |
|
|
3.3 |
|
|
|
14,418 |
|
|
3.1 |
|
|
|
15,176 |
|
3.3 |
Loss on disposal of assets |
|
|
36 |
|
|
0.0 |
|
|
|
95 |
|
|
0.1 |
|
|
|
165 |
|
|
0.0 |
|
|
|
289 |
|
0.1 |
(Gain) loss on disposition of
restaurants |
|
|
(848 |
) |
|
(0.7 |
) |
|
|
— |
|
|
— |
|
|
|
(848 |
) |
|
(0.2 |
) |
|
|
1,534 |
|
0.3 |
Impairment and closed-store
reserves |
|
|
154 |
|
|
0.1 |
|
|
|
(5 |
) |
|
(0.0 |
) |
|
|
752 |
|
|
0.2 |
|
|
|
1,087 |
|
0.2 |
Total expenses |
|
|
106,415 |
|
|
91.8 |
|
|
|
100,539 |
|
|
92.3 |
|
|
|
439,839 |
|
|
93.6 |
|
|
|
413,028 |
|
90.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
9,507 |
|
|
8.2 |
|
|
|
8,418 |
|
|
7.7 |
|
|
|
30,120 |
|
|
6.4 |
|
|
|
41,335 |
|
9.1 |
Interest expense, net of interest
income |
|
|
720 |
|
|
0.6 |
|
|
|
425 |
|
|
0.4 |
|
|
|
1,677 |
|
|
0.4 |
|
|
|
1,824 |
|
0.4 |
Income tax receivable agreement
(income) expense |
|
|
(91 |
) |
|
(0.1 |
) |
|
|
126 |
|
|
0.1 |
|
|
|
(436 |
) |
|
(0.1 |
) |
|
|
58 |
|
0.0 |
Income before provision
for income taxes |
|
|
8,878 |
|
|
7.7 |
|
|
|
7,867 |
|
|
7.2 |
|
|
|
28,879 |
|
|
6.1 |
|
|
|
39,453 |
|
8.7 |
Provision for income taxes |
|
|
2,342 |
|
|
2.1 |
|
|
|
1,688 |
|
|
1.5 |
|
|
|
8,078 |
|
|
1.7 |
|
|
|
10,332 |
|
2.3 |
Net income |
|
$ |
6,536 |
|
|
5.6 |
|
|
$ |
6,179 |
|
|
5.7 |
|
|
$ |
20,801 |
|
|
4.4 |
|
|
$ |
29,121 |
|
6.4 |
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.18 |
|
|
|
|
$ |
0.17 |
|
|
|
|
$ |
0.57 |
|
|
|
|
$ |
0.81 |
|
|
Diluted |
|
$ |
0.18 |
|
|
|
|
$ |
0.17 |
|
|
|
|
$ |
0.57 |
|
|
|
|
$ |
0.80 |
|
|
Weighted average shares
used in computing net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
36,442,572 |
|
|
|
|
|
36,104,828 |
|
|
|
|
|
36,350,579 |
|
|
|
|
|
35,973,892 |
|
|
Diluted |
|
|
36,651,471 |
|
|
|
|
|
36,409,186 |
|
|
|
|
|
36,575,904 |
|
|
|
|
|
36,446,756 |
|
|
(1) Percentages for line items relating to cost of operations
and company restaurant expenses are calculated with
company-operated restaurant revenue as the denominator. All
other percentages use total revenue.
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED SELECTED BALANCE
SHEETS AND SELECTED OPERATING DATA(dollar amounts
in thousands)
|
|
|
|
|
|
|
|
|
As of |
|
|
December 28, 2022 |
|
December 29, 2021 |
Selected Balance Sheet
Data: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
20,493 |
|
$ |
30,046 |
Total assets |
|
|
597,218 |
|
|
613,786 |
Total debt |
|
|
66,000 |
|
|
40,000 |
Total liabilities |
|
|
316,070 |
|
|
303,163 |
Total stockholders’ equity |
|
|
281,148 |
|
|
310,623 |
|
|
|
|
|
|
|
|
|
|
Fifty-Two Weeks Ended |
|
|
|
December 28, 2022 |
|
December 29, 2021 |
|
Selected Operating
Data: |
|
|
|
|
|
|
|
Company-operated restaurants at
end of period |
|
|
188 |
|
|
189 |
|
Franchised restaurants at end of
period |
|
|
302 |
|
|
291 |
|
Company-operated: |
|
|
|
|
|
|
|
Comparable restaurant sales growth |
|
|
3.7 |
% |
|
7.6 |
% |
Restaurants in the comparable base |
|
|
184 |
|
|
187 |
|
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED RECONCILIATION OF
SYSTEM-WIDE SALES TO COMPANY-OPERATED RESTAURANT REVENUE AND TOTAL
REVENUE(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
(Dollar amounts in thousands) |
|
December 28, 2022 |
|
December 29, 2021 |
|
December 28, 2022 |
|
December 29, 2021 |
Company-operated restaurant revenue |
|
$ |
99,633 |
|
|
$ |
93,616 |
|
|
$ |
403,218 |
|
|
$ |
394,733 |
|
Franchise revenue |
|
|
9,363 |
|
|
|
8,810 |
|
|
|
38,225 |
|
|
|
33,729 |
|
Franchise advertising fee
revenue |
|
|
6,926 |
|
|
|
6,531 |
|
|
|
28,516 |
|
|
|
25,901 |
|
Total
Revenue |
|
|
115,922 |
|
|
|
108,957 |
|
|
|
469,959 |
|
|
|
454,363 |
|
Franchise revenue |
|
|
(9,363 |
) |
|
|
(8,810 |
) |
|
|
(38,225 |
) |
|
|
(33,729 |
) |
Franchise advertising fee
revenue |
|
|
(6,926 |
) |
|
|
(6,531 |
) |
|
|
(28,516 |
) |
|
|
(25,901 |
) |
Sales from franchised
restaurants |
|
|
154,468 |
|
|
|
145,745 |
|
|
|
635,819 |
|
|
|
578,497 |
|
System-wide
sales |
|
$ |
254,101 |
|
|
$ |
239,361 |
|
|
$ |
1,039,037 |
|
|
$ |
973,230 |
|
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED RECONCILIATION OF NET
INCOME TO EBITDA AND ADJUSTED EBITDA(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 28, 2022 |
|
December 29, 2021 |
|
December 28, 2022 |
|
December 29, 2021 |
Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
|
$ |
6,536 |
|
|
$ |
6,179 |
|
|
$ |
20,801 |
|
|
$ |
29,121 |
Provision for income taxes |
|
|
2,342 |
|
|
|
1,688 |
|
|
|
8,078 |
|
|
|
10,332 |
Interest expense, net |
|
|
720 |
|
|
|
425 |
|
|
|
1,677 |
|
|
|
1,824 |
Depreciation and amortization |
|
|
3,673 |
|
|
|
3,637 |
|
|
|
14,418 |
|
|
|
15,176 |
EBITDA |
|
$ |
13,271 |
|
|
$ |
11,929 |
|
|
$ |
44,974 |
|
|
$ |
56,453 |
Stock-based compensation expense (a) |
|
|
685 |
|
|
|
284 |
|
|
|
3,491 |
|
|
|
3,220 |
Loss on disposal of assets (b) |
|
|
36 |
|
|
|
95 |
|
|
|
165 |
|
|
|
289 |
(Gain) loss on disposition of restaurants (c) |
|
|
(848 |
) |
|
|
— |
|
|
|
(848 |
) |
|
|
1,534 |
Impairment and closed-store reserves (d) |
|
|
154 |
|
|
|
(5 |
) |
|
|
752 |
|
|
|
1,087 |
Income tax receivable agreement (income) expense (e) |
|
|
(91 |
) |
|
|
126 |
|
|
|
(436 |
) |
|
|
58 |
Securities class action legal expense (f) |
|
|
— |
|
|
|
239 |
|
|
|
443 |
|
|
|
495 |
Legal settlements (g) |
|
|
— |
|
|
|
— |
|
|
|
(541 |
) |
|
|
— |
Special legal expenses (h) |
|
|
— |
|
|
|
— |
|
|
|
350 |
|
|
|
— |
Pre-opening costs (i) |
|
|
46 |
|
|
|
39 |
|
|
|
326 |
|
|
|
259 |
Adjusted
EBITDA |
|
$ |
13,253 |
|
|
$ |
12,707 |
|
|
$ |
48,676 |
|
|
$ |
63,395 |
(a) Includes non-cash, stock-based compensation.(b) Loss on
disposal of assets includes the loss on disposal of assets related
to retirements and replacement or write-off of leasehold
improvements or equipment.(c) During the year ended
December 28, 2022, we completed the sale of our three
restaurants within Orange County area to an existing franchisee.
This sale resulted in cash proceeds of $1.0 million and a
net gain on sale of restaurants of $0.8 million for the year
ended December 28, 2022. During the year ended
December 29, 2021, we completed the sale of our eight
restaurants within Sacramento area to an existing franchisee. This
sale resulted in cash proceeds of $4.6 million and a net
loss on sale of restaurants of $1.5 million for the year
ended December 29, 2021.(d) Includes costs related to
impairment of long-lived and right-of-use (“ROU’) assets and
closing restaurants. During the quarter and year ended December 28,
2022, we recorded non-cash impairment charges of $0.1 million and
$0.5 million, respectively, primarily related the long-lived assets
of two restaurant in California. During the quarter and year ended
December 29, 2021, we recorded non-cash impairment charges of less
than $0.1 million and $0.7 million, respectively, primarily related
to the carrying value of the ROU assets of one restaurant in Texas
closed in 2019, the ROU assets of one restaurant in California
closed during the year, and the long-lived assets of three
restaurants in California. During the quarter and year ended
December 28, 2022, we recognized $0.1 million and $0.3 million,
respectively, of closed-store reserve expense related to the
amortization of ROU assets, property taxes and common area
maintenance (“CAM”) payments for our closed locations. During the
quarter and year ended December 29, 2021, we recognized less than
$0.1 million and $0.4 million, respectively, of closed-store
reserve expense related to the amortization of ROU assets, property
taxes and common area maintenance (“CAM”) payments for our closed
locations. (e) On July 30, 2014, we entered into the TRA. This
agreement calls for us to pay to our pre-IPO stockholders 85% of
the savings in cash that we realize in our taxes as a result of
utilizing our net operating losses and other tax attributes
attributable to preceding periods. During the quarter and year
ended December 28, 2022 and December 29, 2021,
income tax receivable agreement (income) expense consisted of the
amortization of interest expense and changes in estimates for
actual tax returns filed, related to our total expected TRA
payments.(f) Consists of costs and recoveries related to the
defense of securities lawsuits. During the year ended December 29,
2021, we received $0.5 million in insurance proceeds, net of legal
expenses, related to the derivative complaint.(g) Includes $0.5
million in legal settlement, net of legal expenses. (h) Consists of
costs related to a special dividend declaration. On October 11,
2022, the Board of Directors declared a special dividend of $1.50
per share on the common stock of the Company. The special dividend
was paid on November 9, 2022, to stockholders of record, including
holders of restricted stock, at the close of business on October
24, 2022.(i) Pre-opening costs are a component of general and
administrative expenses, and consist of costs directly associated
with the opening of new restaurants and incurred prior to opening,
including management labor costs, staff labor costs during
training, food and supplies used during training, marketing costs,
and other related pre-opening costs. These are generally incurred
over the three to five months prior to opening. Pre-opening
costs also include occupancy costs incurred between the date of
possession and the opening date for a restaurant.
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED RECONCILIATION OF NET
INCOME TO ADJUSTED NET INCOME(dollar amounts in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 28, 2022 |
|
December 29, 2021 |
|
December 28, 2022 |
|
December 29, 2021 |
Adjusted net
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
|
$ |
6,536 |
|
|
$ |
6,179 |
|
|
$ |
20,801 |
|
|
$ |
29,121 |
|
Provision for taxes, as reported |
|
|
2,342 |
|
|
|
1,688 |
|
|
|
8,078 |
|
|
|
10,332 |
|
Income tax receivable agreement (income) expense |
|
|
(91 |
) |
|
|
126 |
|
|
|
(436 |
) |
|
|
58 |
|
Loss on disposal of assets |
|
|
36 |
|
|
|
95 |
|
|
|
165 |
|
|
|
289 |
|
(Gain) loss on disposition of restaurants |
|
|
(848 |
) |
|
|
— |
|
|
|
(848 |
) |
|
|
1,534 |
|
Impairment and closed-store reserves |
|
|
154 |
|
|
|
(5 |
) |
|
|
752 |
|
|
|
1,087 |
|
Securities lawsuits related legal expenses |
|
|
— |
|
|
|
239 |
|
|
|
443 |
|
|
|
495 |
|
Legal settlements |
|
|
— |
|
|
|
— |
|
|
|
(541 |
) |
|
|
— |
|
Special legal expenses |
|
|
— |
|
|
|
— |
|
|
|
350 |
|
|
|
— |
|
Provision for income taxes |
|
|
(2,154 |
) |
|
|
(2,205 |
) |
|
|
(7,622 |
) |
|
|
(11,373 |
) |
Adjusted net
income |
|
$ |
5,975 |
|
|
$ |
6,117 |
|
|
$ |
21,142 |
|
|
$ |
31,543 |
|
Adjusted weighted-average
share and per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.58 |
|
|
$ |
0.88 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.58 |
|
|
$ |
0.87 |
|
Weighted-average shares used in
computing adjusted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
36,442,572 |
|
|
|
36,104,828 |
|
|
|
36,350,579 |
|
|
|
35,973,892 |
|
Diluted |
|
|
36,651,471 |
|
|
|
36,409,186 |
|
|
|
36,575,904 |
|
|
|
36,446,756 |
|
EL POLLO LOCO
HOLDINGS, INC.UNAUDITED RECONCILIATION OF
INCOME FROM OPERATIONS TO RESTAURANT
CONTRIBUTION(dollar amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 28, 2022 |
|
December 29, 2021 |
|
December 28, 2022 |
|
December 29, 2021 |
Restaurant
contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
9,507 |
|
|
$ |
8,418 |
|
|
$ |
30,120 |
|
|
$ |
41,335 |
|
Add (less): |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
9,605 |
|
|
|
9,498 |
|
|
|
39,093 |
|
|
|
39,852 |
|
Franchise expenses |
|
|
8,854 |
|
|
|
8,374 |
|
|
|
36,169 |
|
|
|
32,831 |
|
Depreciation and amortization |
|
|
3,673 |
|
|
|
3,637 |
|
|
|
14,418 |
|
|
|
15,176 |
|
Loss on disposal of assets |
|
|
36 |
|
|
|
95 |
|
|
|
165 |
|
|
|
289 |
|
(Gain) loss on disposition of restaurants |
|
|
(848 |
) |
|
|
— |
|
|
|
(848 |
) |
|
|
1,534 |
|
Franchise revenue |
|
|
(9,363 |
) |
|
|
(8,810 |
) |
|
|
(38,225 |
) |
|
|
(33,729 |
) |
Franchise advertising fee revenue |
|
|
(6,926 |
) |
|
|
(6,531 |
) |
|
|
(28,516 |
) |
|
|
(25,901 |
) |
Impairment and closed-store reserves |
|
|
154 |
|
|
|
(5 |
) |
|
|
752 |
|
|
|
1,087 |
|
Restaurant
contribution |
|
$ |
14,692 |
|
|
$ |
14,676 |
|
|
$ |
53,128 |
|
|
$ |
72,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company-operated
restaurant revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue |
|
$ |
115,922 |
|
|
$ |
108,957 |
|
|
$ |
469,959 |
|
|
$ |
454,363 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Franchise revenue |
|
|
(9,363 |
) |
|
|
(8,810 |
) |
|
|
(38,225 |
) |
|
|
(33,729 |
) |
Franchise advertising fee revenue |
|
|
(6,926 |
) |
|
|
(6,531 |
) |
|
|
(28,516 |
) |
|
|
(25,901 |
) |
Company-operated
restaurant revenue |
|
$ |
99,633 |
|
|
$ |
93,616 |
|
|
$ |
403,218 |
|
|
$ |
394,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant contribution margin
(%) |
|
|
14.7 |
% |
|
|
15.7 |
% |
|
|
13.2 |
% |
|
|
18.4 |
% |
El Pollo Loco (NASDAQ:LOCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
El Pollo Loco (NASDAQ:LOCO)
Historical Stock Chart
From Apr 2023 to Apr 2024