El Pollo Loco Holdings, Inc. (LOCO) Bundle
An Overview of El Pollo Loco Holdings, Inc. (LOCO)
General Summary of El Pollo Loco Holdings, Inc.
El Pollo Loco Holdings, Inc. (LOCO) was founded in 1980 in Los Angeles, California, and has grown to become a prominent fast-casual restaurant chain specializing in Mexican-style grilled chicken. The company operates both company-owned and franchised restaurants, offering a menu that includes flame-grilled chicken, burritos, tacos, and various sides. As of 2024, El Pollo Loco has a total of 496 locations across seven states, with a mix of 172 company-operated and 324 franchised restaurants.
In 2024, the company reported total sales of approximately $833.5 million, with system-wide sales reflecting a strong performance in the fast-casual dining sector.
Company's Financial Performance in Latest Reports
For the quarter ending September 25, 2024, El Pollo Loco reported total revenue of $120.4 million, slightly down from $120.4 million in the same period the previous year. Year-to-date revenue reached $358.7 million, an increase from $356.4 million year-over-year. The breakdown of revenue sources is as follows:
| Revenue Source | Thirteen Weeks Ended September 25, 2024 | Thirteen Weeks Ended September 27, 2023 | Thirty-Nine Weeks Ended September 25, 2024 | Thirty-Nine Weeks Ended September 27, 2023 |
|---|---|---|---|---|
| Company-operated restaurant revenue | $101,178,000 | $102,703,000 | $300,638,000 | $304,477,000 |
| Franchise revenue | $11,330,000 | $10,255,000 | $34,329,000 | $30,046,000 |
| Franchise advertising fee revenue | $7,887,000 | $7,441,000 | $23,757,000 | $21,894,000 |
| Total Revenue | $120,395,000 | $120,399,000 | $358,724,000 | $356,417,000 |
During the same quarter, the company achieved a net income of $6.2 million, compared to $9.2 million in the prior year, reflecting a decrease primarily due to increased costs. The company’s comparable restaurant sales increased by 2.8% for company-operated locations, with an average check size increase of 11.3%, while transactions decreased by 7.6%. Overall, the company’s financial health remains stable, with a focus on managing costs and enhancing customer experience.
Introduction to Company as a Leader in the Industry
El Pollo Loco is recognized as a leader in the fast-casual restaurant segment, known for its unique offerings and commitment to quality. The company has successfully positioned itself in a competitive marketplace by emphasizing fresh, high-quality ingredients and a customer-centric approach. Its focus on grilled chicken sets it apart from traditional fast-food competitors, appealing to health-conscious consumers seeking flavorful options.
As of 2024, El Pollo Loco continues to expand its footprint and enhance its brand presence, making strategic moves in restaurant openings and remodels to drive growth. The company is dedicated to maintaining its leadership in the industry through innovation and commitment to exceptional service.
Mission Statement of El Pollo Loco Holdings, Inc. (LOCO)
Mission Statement of El Pollo Loco Holdings, Inc. (LOCO)
El Pollo Loco Holdings, Inc. (LOCO) articulates its mission statement as a commitment to "inspire and nurture the human spirit – one person, one meal, and one neighborhood at a time." This mission statement serves as a guiding principle that shapes the company's strategic direction, operational practices, and long-term goals. By focusing on high-quality food and exceptional customer service, El Pollo Loco aims to foster community engagement and build lasting relationships with its customers and franchisees.
Core Component 1: High-Quality Products
The first core component of El Pollo Loco's mission statement emphasizes the delivery of high-quality products. The company prides itself on using fresh, never frozen chicken marinated in a proprietary blend of citrus, garlic, and spices, which is grilled to perfection. This commitment to quality is reflected in the company's sourcing practices and menu offerings.
As of the third quarter of 2024, El Pollo Loco reported a decrease in food and paper costs by $2.2 million, or 7.8%, compared to the same quarter in the previous year, indicating effective cost management while maintaining quality standards. Furthermore, the average check size for company-operated restaurants increased by 11.3% during the quarter, largely due to menu price adjustments that align with the quality of ingredients offered.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Food and Paper Costs | $25.4 million | $27.6 million | -7.8% |
| Average Check Size Increase | 11.3% | N/A | N/A |
Core Component 2: Exceptional Customer Service
The second core component focuses on providing exceptional customer service. El Pollo Loco strives to create a welcoming environment for customers, ensuring that every visit is a positive experience. This commitment is evidenced by the company's ongoing training programs for staff, aimed at enhancing customer interactions and service efficiency.
In the third quarter of 2024, system-wide comparable restaurant sales increased by 2.7%, demonstrating the effectiveness of customer service initiatives. Additionally, the company boasts over 4.1 million loyalty program members as of September 25, 2024, reflecting strong customer engagement and satisfaction.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| System-wide Comparable Sales Increase | 2.7% | N/A | N/A |
| Loyalty Program Members | 4.1 million | N/A | N/A |
Core Component 3: Community Engagement
The third core component of the mission statement highlights El Pollo Loco's commitment to community engagement. The company actively participates in local initiatives and charitable events, fostering a sense of belonging and support within the neighborhoods it serves.
El Pollo Loco has consistently opened new locations, with two new company-operated restaurants opened in Q3 2024, contributing to local job creation and economic development. The sale of 19 company-operated restaurants to franchisees further enables local ownership and investment in the community.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| New Company-Operated Restaurants Opened | 2 | 2 | N/A |
| Franchise Restaurant Sales | $34.3 million | $30.0 million | 14.3% |
Vision Statement of El Pollo Loco Holdings, Inc. (LOCO)
Vision Statement Overview
The vision statement of El Pollo Loco Holdings, Inc. (LOCO) as of 2024 emphasizes its commitment to becoming the leading brand in the Mexican-style grilled chicken sector. The company aims to provide high-quality food and exceptional service while expanding its footprint across the United States.
Commitment to Quality
El Pollo Loco's vision highlights a strong commitment to quality, which is reflected in its food sourcing and preparation processes. The company purchases approximately $9.1 million worth of chicken under long-term purchasing commitments. This ensures that only the freshest ingredients are used, maintaining the integrity of their menu offerings.
Customer Experience Focus
A key component of El Pollo Loco's vision is the prioritization of customer experience. The company has implemented a loyalty rewards program, boasting over 4.1 million members as of September 25, 2024. This program is designed to enhance customer engagement and retention, ultimately driving sales growth.
Expansion Strategy
El Pollo Loco is actively pursuing expansion as part of its vision. As of September 25, 2024, the company operates 496 locations across seven states. The growth strategy includes opening new company-operated and franchised restaurants to increase market penetration and brand visibility.
Financial Performance Metrics
In alignment with its vision, El Pollo Loco is focused on achieving strong financial performance. For the thirteen weeks ended September 25, 2024, the company reported total revenue of $120.4 million, with company-operated restaurant revenue of $101.2 million. This performance showcases the effectiveness of their operational strategies and customer engagement initiatives.
System-Wide Sales Growth
The vision also encompasses a goal of improving system-wide sales. For the same period, system-wide sales increased to $279.97 million, reflecting a year-over-year growth of approximately 4.1%. This growth underscores the company’s commitment to enhancing its market position.
Innovative Marketing Strategies
El Pollo Loco’s vision includes leveraging innovative marketing strategies to attract new customers. For the quarter ended September 25, 2024, franchise advertising fee revenue increased by 6.0%, amounting to $7.89 million. This reflects the effectiveness of their marketing efforts in driving brand awareness and sales.
Sustainability Initiatives
In 2024, El Pollo Loco also aims to incorporate sustainability into its vision. The company is committed to reducing its carbon footprint and enhancing its supply chain sustainability, aligning with broader consumer trends favoring environmentally responsible practices.
Conclusion on Vision Statement
The vision statement of El Pollo Loco Holdings, Inc. (LOCO) for 2024 is a comprehensive framework focused on quality, customer experience, expansion, financial growth, innovative marketing, and sustainability. These elements are designed to position the company as a leader in the fast-casual dining sector, specifically within the grilled chicken market.
Core Values of El Pollo Loco Holdings, Inc. (LOCO)
Commitment to Quality
The core value of Commitment to Quality is central to El Pollo Loco Holdings, Inc. (LOCO). This value emphasizes the company's dedication to providing high-quality food and service, which is essential for customer satisfaction and brand loyalty.
As of September 25, 2024, El Pollo Loco reported a company-operated restaurant revenue of $101.2 million for the quarter, demonstrating the financial success stemming from its focus on quality. The company also experienced a 4.1% increase in system-wide comparable restaurant sales year-to-date, indicating that customers appreciate the quality of their offerings.
Customer-Centric Service
Customer-Centric Service is another core value that drives El Pollo Loco's operations. This value reflects the company's commitment to providing exceptional service and creating a welcoming environment for all guests.
In the 2024 fiscal year, El Pollo Loco had over 4.1 million loyalty program members, showcasing its efforts to engage with customers and enhance their dining experience. The company has implemented various customer engagement initiatives, including the Loco Rewards program, which allows members to earn points for free entrées.
Community Engagement
Community Engagement is a core value that underscores El Pollo Loco's commitment to social responsibility and giving back to the communities it serves. This value is evident through various initiatives aimed at supporting local charities and organizations.
In 2024, El Pollo Loco has continued its support for local communities through sponsorships and fundraising efforts. The company's community programs have garnered positive attention, contributing to a strong brand image and customer loyalty.
Integrity and Accountability
Integrity and Accountability are fundamental values at El Pollo Loco, ensuring that the company operates transparently and ethically. This value is crucial for maintaining trust with both customers and stakeholders.
As of September 25, 2024, El Pollo Loco reported total liabilities of $334.8 million, reflecting its commitment to financial integrity and responsible management of resources. The company's adherence to financial covenants under the 2022 Credit Agreement further demonstrates its accountability in financial practices.
Innovation
Innovation is a core value that drives El Pollo Loco's growth and adaptation in a competitive market. This value encourages the company to continually seek new ideas and improvements across all aspects of its operations.
In fiscal 2024, El Pollo Loco has focused on digital initiatives to enhance customer experience, including online ordering and delivery options. The company also opened one new company-operated restaurant and supported its franchisees in opening additional locations, reflecting a proactive approach to business growth.
| Core Value | Description | Key Metrics (2024) |
|---|---|---|
| Commitment to Quality | Focus on high-quality food and service | Company-operated revenue: $101.2 million |
| Customer-Centric Service | Exceptional service and customer engagement | Loyalty members: 4.1 million |
| Community Engagement | Support for local charities and organizations | Positive community response and brand loyalty |
| Integrity and Accountability | Transparent and ethical operations | Total liabilities: $334.8 million |
| Innovation | Continuous improvement and adaptation | New restaurant openings: 1 |
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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.