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.
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