Q1 2025 El Pollo Loco Holdings Inc Earnings Call Transcript

May 1, 2025 / 08:30 PM GMT

Release Date Price: MXN297.73

Transcript 10-Q8-K

Key Points

Positve

El Pollo Loco Holdings Inc (LOCO) reported a 2.6% increase in total revenue for Q1 2025 compared to the same period in 2024.
The company successfully launched Mango Habanero Fire Grilled Chicken, which drove trial from new guests and showcased the potential of menu innovation.
El Pollo Loco Holdings Inc (LOCO) opened two new restaurants in Q1 and plans to open at least 10 more in 2025, indicating growth in their restaurant footprint.
The company is focusing on improving customer experience through investments in operations and a new customer feedback system.
El Pollo Loco Holdings Inc (LOCO) is optimistic about its brand relaunch and menu innovations, including new products like fresco wraps and quesadillas, which are expected to drive growth in the latter half of the year.

Negative

The company reported a decrease in restaurant contribution margin to 16% from 17.6% in the previous year, primarily due to labor inflation and higher operating costs.
Comparable restaurant sales decreased by 1.3% for franchise-operated restaurants, indicating challenges in maintaining sales momentum.
El Pollo Loco Holdings Inc (LOCO) experienced a 3.8% decrease in transactions, despite an increase in average check size.
The company faced headwinds from consumer pullback and macroeconomic uncertainties, impacting sales performance.
Weather conditions in Southern California negatively affected sales, particularly during lunch hours, contributing to softer performance in March.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LOCO.OQ - El Pollo Loco Holdings Inc
Q1 2025 El Pollo Loco Holdings Inc Earnings Call
May 01, 2025 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day, ladies and gentlemen, and thank you for standing by. Welcome to the El Polo Loco first quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode, and the lines will be open for your questions following the presentation. Please note that this conference is being recorded today, May 1, 2025.

And now I would like to turn the conference over to Ira Phils, the company's Chief Financial Officer.

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Unidentified_2 [2]
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Thank you, operator, and good afternoon. By now everyone should

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