Stock Monitor: Arcos Dorados Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 19, 2018 / Active-Investors.com has just released a free earnings report on El Pollo Loco Holdings, Inc. (NASDAQ: LOCO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LOCO. El Pollo Loco reported its fourth quarter and fiscal 2017 operating and financial results on March 08, 2018. The Tex-Mex fast food chain's revenue grew 3% on a y-o-y basis, and the Company provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Arcos Dorados Holdings Inc. (NYSE: ARCO), which also belongs to the Services sector as the Company El Pollo Loco Holdings. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, El Pollo Loco Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter, 2017, El Pollo Loco's total revenue grew 2.9% to $95.2 million compared to $92.5 million. The Company's system-wide comparable restaurant sales increased 1.4%, including a 0.9% increase for company-operated restaurants, and a 1.9% increase for franchised restaurants. El Pollo Loco's reported numbers beat analysts' estimates of $95.0 million.
For the full year 2017, El Pollo Loco's revenue totaled $401.7 million, up 6% compared to $380.1 million in FY16.
During Q4 2017, El Pollo Loco recorded a $16.4 million expense related to the impairment of the assets of 11 restaurants in Texas and 1 in Arizona, net of closed-store reserve. This impairment charge included the entire remaining value of capitalized assets of all of the company-operated restaurants in Texas, net of previously recorded depreciation.
For Q4 2017, El Pollo Loco reported net loss of $38,000, or $0.00 per share, compared to net income of $0.4 million, or $0.01 per diluted share, in Q4 2016. The Company's results for the reported quarter included a $16.4 million pre-tax expense related to the full impairment of the assets of 12 restaurants, net of closed-store reserve.
El Pollo Loco's pro-forma net income was $4.4 million, or $0.11 per diluted share, for Q4 2017 compared to $4.6 million, or $0.12 per diluted share, in Q4 2016. The Company's earnings beat Wall Street's estimates of $0.10 per share.
For FY17, El Pollo Loco posted net income of $8.61 million, or $0.22 per diluted share, compared to $18.33 million, or $0.47 per diluted share, on FY16. The Company's pro-forma net income was $24.7 million, or $0.63 per diluted share, for FY17 compared to $25.6 million, or $0.66 per diluted share, in FY16.
El Pollo Loco Holdings' Segment Results
During Q4 2017, the company-operated restaurant revenue grew 3.3% to $89.3 million compared to $86.5 million in Q4 2016. The growth in company-operated restaurant revenue was largely driven by the 24 new restaurants opened during and subsequent to Q4 2016, partially offset by 5 restaurant closures during the same time period. In the reported quarter, comparable company-operated restaurant sales grew 0.9%, driven by a 1.9% increase in average check, partially offset by a 1.0% decrease in transactions.
For Q4 2017, the Franchise's revenue dropped 1.5% to $5.9 million compared to $6.0 million in Q4 2016. The decline in franchise revenue was largely driven by a decline in franchise and development agreement fees, partially offset by the contribution from the 14 new restaurants opened during and subsequent to Q4 2016.
During Q4 2017, restaurant contribution was $16.6 million, or 18.5% of company-operated restaurant revenue, compared to $16.0 million, or 18.5% of company-operated restaurant revenue, in Q4 2016. The restaurant contribution margin was consistent on a y-o-y basis, primarily due to lower commodity costs, and lower group insurance costs due to lower claims activity, offset by higher labor costs, and higher other operating expenses associated with new restaurants opened in FY16 and FY17.
For the fiscal year 2018, El Pollo Loco is forecasting pro forma net income in the range of $0.68 to $0.73 per share, as compared to pro forma diluted net income per share of $0.63 in FY 2017.
El Pollo Loco is projecting system-wide comparable restaurant sales growth of approximately flat in FY18, opening of 6-8 new company-owned restaurants and 6-8 new franchised restaurants. The Company is expecting restaurant contribution margin of 18.7% to 19.6% and general and administrative (G&A) expenses of between 8.8% and 9.0% of total revenue excluding CEO transition costs and legal fees related to securities related litigation.
Stock Performance Snapshot
April 18, 2018 - At Wednesday's closing bell, El Pollo Loco's stock slightly advanced 0.51%, ending the trading session at $9.85.
Volume traded for the day: 235.02 thousand shares.
Stock performance in the last month - up 0.51%
After yesterday's close, El Pollo Loco's market cap was at $384.74 million.
Price to Earnings (P/E) ratio was at 54.42.
The stock is part of the Services sector, categorized under the Restaurants industry. This sector was up 0.9% at the end of the session.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.