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El Pollo Loco (LOCO) Q4 Earnings Match Estimates, Revenues Top
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El Pollo Loco Holdings, Inc. (LOCO - Free Report) reported fourth-quarter fiscal 2023 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top declined from the prior-year quarter’s levels, while the bottom line remained flat year over year.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company’s adjusted earnings per share (EPS) were in line with the Zacks Consensus Estimate of 16 cents. The figure matched the prior-year quarter’s levels.
Quarterly revenues of $112.2 million beat the consensus mark of $109 million. The top line declined 3.2% on a year-over-year basis.
El Pollo Loco Holdings, Inc. Price, Consensus and EPS Surprise
During the quarter, revenues from company-operated restaurants came in at $94 million compared with $99.6 million reported in the prior-year quarter. The downside was primarily caused by a reduction of $5.8 million in revenues (stemming from the sale of 18 company-operated restaurants to existing franchisees) and a decline in comparable restaurant revenues of $0.2 million. This was partially offset by a $0.5 million increase resulting from additional sales generated by restaurants opened in previous quarters.
In the fiscal fourth quarter, franchise revenues increased 17% year over year to $11 million. The upside was backed by revenues generated by the 18 company-operated restaurants sold by the Company to existing franchisees and from the opening of five restaurants (during or after the fourth quarter of 2022). The increase was fueled by a 1.6% uptick in comparable restaurant sales within the franchise segment.
Operating Highlights
During the fiscal fourth quarter, general and administrative expenses came in at $10.6 million compared with $9.6 million reported in the prior-year quarter. The upside was caused by a $0.6 million escalation in executive transition costs and a $0.4 million uptick in other general and administrative expenses.
During the quarter, the restaurant contribution margin came in at 15.8% compared with 14.7% reported in the prior-year quarter.
Adjusted net income during the quarter came in at $5.2 million compared with $6 million reported in the prior-year quarter.
Adjusted EBITDA in the fiscal fourth quarter came in at $13.6 million compared with $13.3 million reported in the prior-year quarter.
Balance Sheet
As of Dec 27, 2023, cash and cash equivalents totaled $7.3 million compared with $20.5 million as of Dec 28, 2022. At the end of the fiscal fourth quarter, total debt amounted to $84 million compared with $66 million at the end of fourth-quarter fiscal 2022.
Fiscal 2023 Highlights
Total revenues in the fiscal 2023 amounted to $468.7 million compared with $470 million in the fiscal 2022.
Adjusted net income in the fiscal 2023 came in at $24.5 million compared with $21.1 million in the fiscal 2022.
In the fiscal 2023, diluted EPS came in at 71 cents compared with 58 cents reported in the previous year.
Fiscal 2024 Outlook
In fiscal 2024, the company anticipates opening two new company-owned restaurants and adding five to seven new franchised restaurants to its portfolio.
Capital expenditures during the period are projected to be between $25 million and $28 million. The company anticipates general and administrative expenses in the range of $45-$47 million. Adjusted income tax rate is estimated in the range of 27-28%.
Zacks Rank
El Pollo Loco currently has a Zacks Rank #4 (Sell).
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% from the prior-year quarter’s figure. Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago. Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported an adjusted EPS of 76 cents per share in the prior-year quarter. Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. The top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.
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El Pollo Loco (LOCO) Q4 Earnings Match Estimates, Revenues Top
El Pollo Loco Holdings, Inc. (LOCO - Free Report) reported fourth-quarter fiscal 2023 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The top declined from the prior-year quarter’s levels, while the bottom line remained flat year over year.
Earnings & Revenue Discussion
During the fiscal fourth quarter, the company’s adjusted earnings per share (EPS) were in line with the Zacks Consensus Estimate of 16 cents. The figure matched the prior-year quarter’s levels.
Quarterly revenues of $112.2 million beat the consensus mark of $109 million. The top line declined 3.2% on a year-over-year basis.
El Pollo Loco Holdings, Inc. Price, Consensus and EPS Surprise
El Pollo Loco Holdings, Inc. price-consensus-eps-surprise-chart | El Pollo Loco Holdings, Inc. Quote
During the quarter, revenues from company-operated restaurants came in at $94 million compared with $99.6 million reported in the prior-year quarter. The downside was primarily caused by a reduction of $5.8 million in revenues (stemming from the sale of 18 company-operated restaurants to existing franchisees) and a decline in comparable restaurant revenues of $0.2 million. This was partially offset by a $0.5 million increase resulting from additional sales generated by restaurants opened in previous quarters.
In the fiscal fourth quarter, franchise revenues increased 17% year over year to $11 million. The upside was backed by revenues generated by the 18 company-operated restaurants sold by the Company to existing franchisees and from the opening of five restaurants (during or after the fourth quarter of 2022). The increase was fueled by a 1.6% uptick in comparable restaurant sales within the franchise segment.
Operating Highlights
During the fiscal fourth quarter, general and administrative expenses came in at $10.6 million compared with $9.6 million reported in the prior-year quarter. The upside was caused by a $0.6 million escalation in executive transition costs and a $0.4 million uptick in other general and administrative expenses.
During the quarter, the restaurant contribution margin came in at 15.8% compared with 14.7% reported in the prior-year quarter.
Adjusted net income during the quarter came in at $5.2 million compared with $6 million reported in the prior-year quarter.
Adjusted EBITDA in the fiscal fourth quarter came in at $13.6 million compared with $13.3 million reported in the prior-year quarter.
Balance Sheet
As of Dec 27, 2023, cash and cash equivalents totaled $7.3 million compared with $20.5 million as of Dec 28, 2022. At the end of the fiscal fourth quarter, total debt amounted to $84 million compared with $66 million at the end of fourth-quarter fiscal 2022.
Fiscal 2023 Highlights
Total revenues in the fiscal 2023 amounted to $468.7 million compared with $470 million in the fiscal 2022.
Adjusted net income in the fiscal 2023 came in at $24.5 million compared with $21.1 million in the fiscal 2022.
In the fiscal 2023, diluted EPS came in at 71 cents compared with 58 cents reported in the previous year.
Fiscal 2024 Outlook
In fiscal 2024, the company anticipates opening two new company-owned restaurants and adding five to seven new franchised restaurants to its portfolio.
Capital expenditures during the period are projected to be between $25 million and $28 million. The company anticipates general and administrative expenses in the range of $45-$47 million. Adjusted income tax rate is estimated in the range of 27-28%.
Zacks Rank
El Pollo Loco currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
McDonald's Corporation (MCD - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported adjusted EPS of $2.95, outpacing the Zacks Consensus Estimate of $2.81. Adjusted earnings increased 11% from the prior-year quarter’s figure. Quarterly net revenues of $6.4 billion missed the consensus mark of $6.5 billion. The top line rose 8% year over year. The upside was backed by menu price increases, effective marketing campaigns and continued digital and delivery growth.
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
During the quarter, YUMC reported adjusted EPS of 25 cents, beating the Zacks Consensus Estimate of 13 cents. The bottom line surged 92.3% from 13 cents reported a year ago. Quarterly revenues of $2.5 billion outpaced the consensus mark of $2.4 billion. The top line rose 19.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 21% year over year. The upside can be attributed to net new unit contribution (12%) and same-store sales growth (4%).
Brinker International, Inc. (EAT - Free Report) reported mixed second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis. Effective marketing and pricing strategies backed the upside. Sequential improvements in guest traffic bode well.
During the quarter, EAT reported adjusted EPS of 99 cents, surpassing the Zacks Consensus Estimate of a loss of $1.47. The company reported an adjusted EPS of 76 cents per share in the prior-year quarter. Quarterly revenues of $1.07 billion missed the Zacks Consensus Estimate of $1.08 billion. The top line increased 5.4% on a year-over-year basis. EAT gained from Chili's solid performance.