El Pollo Loco Q3 adjusted EPS beats on margin expansion and higher menu prices

Reuters10-31
El Pollo Loco Q3 adjusted EPS beats on margin expansion and higher menu prices

Overview

  • El Pollo Loco Q3 revenue missed analyst expectations, per LSEG data

  • Adjusted EPS for Q3 beats consensus

  • Company opened its 500th restaurant, highlighting expansion efforts

Outlook

  • Company plans to open at least ten system-wide restaurants in 2025

  • Capital spending projected between $28.0 mln and $30.0 mln

  • G&A expenses expected between $47.5 mln and $49.5 mln, excluding one-time costs

Result Drivers

  • TRAFFIC GROWTH - Positive traffic growth driven by targeted value and innovations, enhancing brand equity

  • MARGIN EXPANSION - Margin expansion achieved through operational efficiencies and higher menu prices

  • FRANCHISE REVENUE - Increase in franchise revenue due to new restaurant openings and POS system rollout

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$121.50 mln

$123.41 mln (5 Analysts)

Q3 Adjusted EPS

Beat

$0.27

$0.21 (5 Analysts)

Q3 EPS

$0.25

Q3 Adjusted Net Income

$7.80 mln

Q3 Net Income

$7.40 mln

Q3 Adjusted EBITDA

$17.40 mln

Q3 Operating Income

$11.50 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the restaurants & bars peer group is "buy"

  • Wall Street's median 12-month price target for El Pollo Loco Holdings Inc is $15.00, about 36.6% above its October 29 closing price of $9.51

Press Release: ID:nGNX3NVPVn

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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