- El Pollo LoCo Holdings Inc (NASDAQ:LOCO) reported a fourth-quarter revenue decline of 1.3% year-over-year to $108.96 million, beating the consensus of $108.58 million.
- Franchise revenue in the quarter increased by 12.6% Y/Y to $15.3 million. System-wide comparable restaurant sales increased 11%.
- Adjusted EPS improved to $0.17 from $0.16, beating the consensus of $0.12.
- The Operating margin expanded by 30 bps to 7.7%.
- Restaurant contribution was $14.7 million, or 15.7% of company-operated restaurant revenue, compared to $15.3 million, or 15.8% in 4Q20.
- Adjusted EBITDA decreased 6.7% Y/Y to $12.71 million, and margin contracted by 70 bps to 11.7%.
- LOCO maintained its debt balance at $40 million and had $30 million in cash and cash equivalents as of December 29, 2021.
- As of February 23, 2022, year-to-date system, comparable restaurant sales increased 7.4%, consisting of a 1.5% increase in company-owned restaurants and an 11.2% increase in franchise restaurants.
- Additionally, the company's announced the appointment of Laurence "Larry" Roberts as Chief Executive Officer, President, and a Class III director on the Board of Directors of the Company, effective March 9, 2022.
- Mr. Roberts will also serve as Interim Chief Financial Officer as the company conducts a search to appoint a CFO.
- FY22 Outlook: LOCO expects to open three to six new company-owned restaurants and six to ten new franchised restaurants.
- It also expects a Capital spend of $20 million - $25 million.
- Price Action: LOCO shares are higher by 8.24% at $13.80 during the after-hours session on Thursday.
- Photo via Wikimedia Commons
