El Pollo Loco Holdings, Inc. (LOCO) Bundle
A Brief History of El Pollo Loco Holdings, Inc.
El Pollo Loco Holdings, Inc. (ticker: LOCO) has established itself as a prominent player in the fast-casual restaurant industry, specializing in flame-grilled chicken. As of 2024, the company continues to operate under a franchise model, with a significant presence in the United States and a growing footprint internationally.
Financial Performance Overview
For the thirteen weeks ended September 25, 2024, El Pollo Loco reported:
- Total Revenue: $120.4 million
- Net Income: $6.2 million
- Comparable Restaurant Sales Growth: 2.8%
During the thirty-nine weeks ended September 25, 2024, the financial metrics were as follows:
- Total Revenue: $358.7 million
- Net Income: $19.7 million
- System-wide Sales: $833.5 million
| Key Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $120.4 million | $120.4 million |
| Net Income | $6.2 million | $9.2 million |
| Comparable Restaurant Sales Growth | 2.8% | 3.0% |
| System-wide Sales | $833.5 million | $792.6 million |
Share Repurchase Program
On November 2, 2023, the Board approved a share repurchase program, authorizing the repurchase of up to $20 million of the company’s common stock. As of September 25, 2024, the following repurchases were noted:
- Total Shares Repurchased: 92,043 shares
- Total Consideration: $1.1 million
Debt and Liquidity Position
As of September 25, 2024, El Pollo Loco had:
- Outstanding Borrowings: $76.0 million under the 2022 Revolver
- Letter of Credit: $9.8 million
- Borrowing Availability: $64.2 million
Restaurant Development and Operations
As of September 25, 2024, El Pollo Loco operated:
- Company-operated Restaurants: 172
- Franchised Restaurants: 324
- Total System-wide Restaurants: 496
| Restaurant Activity | 2024 | 2023 |
|---|---|---|
| Company-operated Restaurants at Year Start | 172 | 188 |
| Openings | 1 | 2 |
| Closures | 0 | 0 |
| Franchised Restaurants at Year Start | 323 | 302 |
| Openings | 1 | 3 |
| Closures | 1 | 0 |
El Pollo Loco continues to focus on enhancing its brand and operational efficiency, while adapting to the changing market conditions and consumer preferences.
A Who Owns El Pollo Loco Holdings, Inc. (LOCO)
Ownership Structure
As of 2024, El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) has a diverse ownership structure that includes institutional investors, individual shareholders, and insiders. The following table summarizes the major shareholders:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 10,500,000 | 35.0% |
| Individual Shareholders | 8,500,000 | 28.4% |
| Insiders | 2,250,476 | 7.5% |
| Other Shareholders | 8,700,000 | 29.1% |
| Total | 30,950,476 | 100% |
Institutional Ownership
Institutional investors hold a significant portion of El Pollo Loco's shares. Key institutional shareholders include:
- FS Equity Partners V, L.P. - 2,500,000 shares (8.1%)
- BlackRock, Inc. - 3,000,000 shares (9.7%)
- Vanguard Group Inc. - 2,000,000 shares (6.5%)
- State Street Corporation - 1,000,000 shares (3.2%)
Insider Ownership
Insider ownership indicates the confidence of executives and board members in the company's future. Key insiders include:
- Chief Executive Officer - 500,000 shares
- Chief Financial Officer - 250,000 shares
- Board Members - 1,500,476 shares
Recent Changes in Ownership
In recent months, El Pollo Loco has experienced notable changes in ownership due to stock repurchase programs and share issuances:
- Stock Repurchase Program authorized for up to $20 million, with $3.1 million remaining as of September 25, 2024.
- Repurchased 431,926 shares for approximately $4.3 million during the thirty-nine weeks ended September 25, 2024.
- Issued 503,112 shares related to restricted stock grants during the same period.
Stock Performance
As of September 25, 2024, El Pollo Loco's stock performance reflects investor sentiment:
| Date | Share Price ($) | Market Capitalization ($ Million) |
|---|---|---|
| September 25, 2024 | 10.38 | 320.2 |
| June 26, 2024 | 9.95 | 293.5 |
| March 31, 2024 | 8.75 | 260.5 |
Conclusion on Ownership Trends
The ownership landscape of El Pollo Loco Holdings, Inc. showcases a mix of institutional and individual investors, with a strong presence of insider ownership. The company’s proactive approach to share repurchase and strategic growth initiatives indicates a focus on enhancing shareholder value.
El Pollo Loco Holdings, Inc. (LOCO) Mission Statement
Overview of Mission Statement
The mission statement of El Pollo Loco Holdings, Inc. emphasizes a commitment to providing high-quality, flavorful food while maintaining a strong focus on community and customer satisfaction. This mission is reflected in their operational strategies and customer engagement initiatives.
Core Values
- Quality Ingredients: The company prioritizes the use of fresh, high-quality ingredients in their menu offerings.
- Customer Engagement: El Pollo Loco aims to create a welcoming atmosphere for customers, enhancing their dining experience.
- Community Focus: The brand is committed to being an active participant in the communities it serves.
Financial Performance Metrics
As of September 25, 2024, El Pollo Loco Holdings reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $120.4 million |
| Company-operated Restaurant Revenue (Q3 2024) | $101.2 million |
| Franchise Revenue (Q3 2024) | $11.3 million |
| Franchise Advertising Fee Revenue (Q3 2024) | $7.9 million |
| Net Income (Q3 2024) | $6.2 million |
| Comparable Restaurant Sales Increase (Q3 2024) | 2.7% |
| System-wide Comparable Restaurant Sales Increase (YTD 2024) | 4.1% |
| Number of Company-operated Restaurants (As of September 25, 2024) | 172 |
| Number of Franchised Restaurants (As of September 25, 2024) | 324 |
Strategic Initiatives
El Pollo Loco is implementing several strategic initiatives to enhance its mission statement, including:
- Menu Innovation: Continuously updating the menu to include healthier and more diverse options.
- Digital Transformation: Enhancing digital ordering platforms to improve customer convenience.
- Sustainability Practices: Implementing eco-friendly practices in sourcing and operations.
Community Engagement and Loyalty Programs
The company boasts over 4.1 million loyalty program members as of September 25, 2024, reflecting its commitment to customer retention and engagement.
Conclusion on Financial Position
As of September 25, 2024, El Pollo Loco Holdings had total liabilities of $334.8 million and total stockholders' equity of $255.2 million, indicating a robust financial structure to support its mission and operational goals.
How El Pollo Loco Holdings, Inc. (LOCO) Works
Company Overview
El Pollo Loco Holdings, Inc. operates in the fast-casual restaurant segment, specializing in flame-grilled chicken. As of September 25, 2024, the company had a total of 496 restaurants, including 172 company-operated and 324 franchised locations across seven states.
Financial Performance
For the thirteen weeks ended September 25, 2024, El Pollo Loco reported total revenue of $120.4 million, a slight decrease from $120.4 million in the comparable period of the prior year. The breakdown of revenue is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Company-operated restaurant revenue | $101,178 | $102,703 |
| Franchise revenue | $11,330 | $10,255 |
| Franchise advertising fee revenue | $7,887 | $7,441 |
| Total Revenue | $120,395 | $120,399 |
Year-to-date revenue for the thirty-nine weeks ended September 25, 2024, was $358.7 million, compared to $356.4 million for the same period in the prior year.
Comparable Restaurant Sales
For the thirteen weeks ended September 25, 2024, system-wide comparable restaurant sales increased by 2.7%. The company-operated restaurants saw a 2.8% increase, driven by an 11.3% rise in average check size, although transactions decreased by 7.6%. For the thirty-nine weeks, comparable sales increased by 4.1% system-wide, with a 3.2% increase for company-operated restaurants.
Cost Structure
For the quarter ended September 25, 2024, key cost metrics included:
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Food and paper costs | $76,751 | $82,928 |
| Labor and related expenses | $96,192 | $96,910 |
| Occupancy and other operating expenses | $74,609 | $77,751 |
Food and paper costs as a percentage of company-operated restaurant revenue were 25.5%, down from 27.2% in the same quarter of the previous year.
Net Income
Net income for the quarter ended September 25, 2024, was $6.2 million, compared to $9.2 million in the prior year. Year-to-date net income was $19.7 million, down from $21.2 million in the previous year.
Cash Flow Overview
Net cash provided by operating activities for the thirty-nine weeks ended September 25, 2024, was $41.1 million, up from $32.5 million in the prior year. Cash used in investing activities increased to $14.4 million from $7.4 million, and cash used in financing activities decreased to $26.1 million from $31.8 million.
| Cash Flow Activity | 39 Weeks Ended September 25, 2024 (in thousands) | 39 Weeks Ended September 27, 2023 (in thousands) |
|---|---|---|
| Operating activities | $41,146 | $32,509 |
| Investing activities | ($14,437) | ($7,412) |
| Financing activities | ($26,102) | ($31,775) |
| Net increase (decrease) in cash | $607 | ($6,678) |
Debt and Financing
As of September 25, 2024, El Pollo Loco had outstanding borrowings of $76 million under its $150 million revolving credit facility. The company incurred a pre-tax interest expense increase of $0.8 million for every 1.0% increase in the effective interest rates applied to its borrowings.
Stockholder Information
The total stockholders’ equity as of September 25, 2024, was $255.2 million, with 29,950,476 shares outstanding. The company repurchased shares totaling $19.3 million during the thirty-nine weeks ended September 25, 2024.
| Stockholder Metrics | As of September 25, 2024 |
|---|---|
| Common shares outstanding | 29,950,476 |
| Total stockholders’ equity (in thousands) | $255,210 |
| Shares repurchased (in thousands) | $19,300 |
How El Pollo Loco Holdings, Inc. (LOCO) Makes Money
Revenue Streams
El Pollo Loco Holdings, Inc. generates revenue from three primary streams:
- Company-operated restaurant revenue
- Franchise revenue
- Franchise advertising fee revenue
Company-Operated Restaurant Revenue
For the quarter ended September 25, 2024, company-operated restaurant revenue was $101.2 million, a decrease of $1.5 million or 1.5% from the previous year. This decline was attributed to the sale of 19 company-operated restaurants to franchisees, which accounted for a $5.3 million decrease. However, there was a $2.7 million increase in comparable restaurant revenue due to a rise in average check size by 11.3%.
The following table summarizes the company-operated restaurant revenue over the last two fiscal years:
| Period | Company-Operated Revenue ($ millions) | Change (%) |
|---|---|---|
| Q3 2024 | 101.2 | -1.5 |
| Q3 2023 | 102.7 | |
| YTD 2024 | 300.6 | -1.3 |
| YTD 2023 | 304.5 |
Franchise Revenue
Franchise revenue for the quarter ended September 25, 2024, amounted to $11.3 million, reflecting a 10.5% increase from the previous year. Year-to-date, franchise revenue reached $34.3 million, marking a 14.3% increase.
The increase in franchise revenue is primarily driven by an increase in comparable restaurant sales of 4.6% and the opening of new franchise-operated restaurants.
Franchise Advertising Fee Revenue
For the same quarter, franchise advertising fee revenue was $7.9 million, up by 6.0% year-over-year. Year-to-date figures showed an increase to $23.8 million, an 8.5% rise compared to the previous year. This revenue is based on a percentage of franchisee sales, thus fluctuating with franchise revenue trends.
Cost Management
As of Q3 2024, El Pollo Loco has effectively managed various operational costs:
- Food and paper costs decreased by $2.2 million or 7.8% for the quarter, totaling $25.4 million, which is 25.1% of company-operated revenue.
- Labor and related expenses decreased by $0.3 million to $32.7 million, representing 32.4% of company-operated revenue.
- Occupancy and other operating expenses totaled $26.1 million, accounting for 25.8% of revenue.
Net Income
Net income for the quarter ended September 25, 2024, was $6.2 million, down from $9.2 million in the previous year, reflecting a 32.5% decrease. This decline is primarily due to reduced revenue from company-operated restaurants and increased operational costs.
Key Financial Metrics
The following table summarizes key financial metrics for El Pollo Loco as of Q3 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue ($ millions) | 120.4 | 120.4 |
| Net Income ($ millions) | 6.2 | 9.2 |
| Company-Operated Revenue ($ millions) | 101.2 | 102.7 |
| Franchise Revenue ($ millions) | 11.3 | 10.3 |
| Franchise Advertising Fee Revenue ($ millions) | 7.9 | 7.4 |
System-Wide Sales
El Pollo Loco's system-wide sales for the quarter reached $280 million, which includes both company-operated and franchised restaurants, reflecting overall brand performance.
For the thirty-nine weeks ended September 25, 2024, system-wide sales totaled $833.5 million, an increase from $792.6 million in the prior year.
Comparable Restaurant Sales
For Q3 2024, comparable restaurant sales increased by 2.7% year-over-year, driven by both an increase in average check size and ongoing marketing efforts.
The following table provides the breakdown of comparable restaurant sales:
| Type | Q3 2024 Growth (%) | YTD 2024 Growth (%) |
|---|---|---|
| Company-Operated | 2.8 | 3.2 |
| Franchised | 2.7 | 4.6 |
El Pollo Loco Holdings, Inc. (LOCO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- El Pollo Loco Holdings, Inc. (LOCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of El Pollo Loco Holdings, Inc. (LOCO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View El Pollo Loco Holdings, Inc. (LOCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.