El Pollo Loco Q2 Profit Surges, Stock Climbs - Update

(RTTNews) - Restaurant chain El Pollo Loco Holdings, Inc. (LOCO) Thursday said second-quarter profit increased significantly from the prior year, amid growth in revenues. The stock added close to 5 percent in the extended trade.

Net income increased to $6.56 million or $0.21 per share from $410,000 or $0.01 per share in the year-ago quarter.

Excluding items, net income totaled $6.1 million or $0.16 per share, while it amounted to $5.5 million or $0.15 per share in the prior year quarter.

Total revenue rose 6.3 percent to $86.90 million from $81.73 million a year ago.

Company-operated restaurant revenue increased 6.3 percent to $81.4 million. Comparable company-operated restaurant sales increased 5 percent, driven by a 2.8 percent increase in average check size and a 2.2 percent increase in traffic.

Franchise revenue increased 6.5 percent to $5.5 million, and Franchised comparable restaurant sales increased 5.9 percent during the quarter.

On average, four Analysts polled by Thomson Reuters expected the company to earn $0.16 per share on revenue of $86.44 million for the second quarter. Analysts' estimates typically exclude special items.

Steve Sather, CEO, said, "Our success continues to be driven by our compelling value proposition and the growing appeal of healthier, better for you offerings found on our menu. Our signature, citrus marinated fire grilled chicken and hand chopped entrees offered at quick service price points reinforce our QSR plus positioning."

On July 30, El Pollo Loco completed its initial public offering at $15.00 per share. The company sold a total of 8.21 million shares of common stock, including 1.07 million shares sold pursuant to the full exercise of the underwriters' option to purchase additional shares.

LOCO closed up 1.2 percent on Thursday at $34.79, and rose 4.6 percent in the extended trade.