NASDAQ$LOCO

El Pollo Loco Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong financial results driven by sales recovery and operational efficiencies.

El Pollo Loco Holdings, Inc. announced strong second quarter results with a 22% increase in top line and a system-wide comparable restaurant sales growth of 14.8% compared to Q2 2019. The company leveraged sales improvements and labor efficiencies to achieve a 20.8% restaurant contribution margin.

  • Total revenue increased to $122.0 million from $99.6 million.
  • System-wide comparable restaurant sales increased by 21.0%.
  • Net income rose to $8.8 million, or $0.24 per diluted share, compared to $5.5 million, or $0.16 per diluted share.
  • Pro forma net income was $10.7 million, or $0.29 per diluted share, compared to $6.9 million, or $0.20 per diluted share.

Headline financials

Total Revenue

$122M

Previous: $99.6M+22.5%
EPS (adj)

$0.29

Previous: $0.20+45.0%
System-wide comparable sales

21.0%

No prior period
Restaurant contribution margin

20.8%

Previous: 19.6%+6.1%
Capital Expenditures

-$8.83M

Previous: -$2.48M-256.1%
Free Cash Flow

-$10K

Previous: $3.02M-100.3%
Net Income

$8.82M

Previous: $5.5M+60.4%
Operating Income

$12.7M

Previous: $7.45M+70.1%
Gross Profit

-$58.5M

Previous: -$47.8M-22.5%
Cash & Equivalents

$12.6M

Previous: $60.3M-79.1%
Total Assets

$599M

Previous: $666M-10.0%
Stock-Based Comp

$1.04M

Previous: $727K+43.2%

Revenue & EPS history

El Pollo Loco · Revenue · Quarterly

$122M

Q2 2021+22.5%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

El Pollo Loco · $15M total across 2 segments · Q2 2021

  • Franchise revenue
    $8.39M+24.9%
  • Franchise advertising fee revenue
    $6.63M+28.0%

Forward guidance

Due to the uncertainty surrounding the COVID-19 pandemic, the company is not yet providing a financial outlook for the year ending December 29, 2021. However, the company is reiterating the following expectations for 2021:

Tailwinds

  • The opening of three to five new company-owned restaurants
  • The opening of four to six new franchised restaurants.
  • Pro forma income tax rate of 26.5%.

Headwinds

  • Increased commodity costs during the second half of the year due to continuing supply chain challenges.
  • Increased labor costs during the second half of the year due to continuing restaurant staffing challenges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.5%

Avg return

30 days after

48%

25 / 52 earnings

Positive

+27.8%

Q3 2019

Best reaction

-18.4%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-2.7%+2.3%
Q4 2025+16.8%+27.8%+27.6%
Q3 2025+13.6%+17.4%+20.4%
Q1 2025-3.8%-5.8%+11.3%
Q4 2024-0.1%-1.1%-12.5%
Q3 2024-4.7%-3.9%+1.4%
Q2 2024-0.8%-2.2%+14.9%
Q1 2024+18.6%+21.0%+26.5%
Q4 2023-3.3%-4.2%+1.4%
Q3 2023+2.7%-1.6%+0.6%
Q2 2023+2.4%+5.9%-5.5%
Q1 2023-6.5%-8.0%-5.8%
Q4 2022-10.3%-6.8%-26.0%
Q3 2022+11.1%+11.3%+8.7%
Q2 2022-7.4%-7.3%-11.5%
Q1 2022+0.9%-2.8%-2.2%
Q4 2021-11.3%-14.7%-12.1%
Q3 2021+4.0%+2.1%-14.9%
Q2 2021+1.8%-1.0%-1.5%
Q1 2021+4.6%+3.4%+0.0%
Q4 2020-2.6%-4.2%-15.4%
Q3 2020-18.4%-15.1%-8.6%
Q2 2020+16.0%+1.2%+7.3%
Q1 2020+10.3%+0.7%+12.1%
Q4 2019-12.4%-21.2%-41.5%
Q3 2019+27.8%+29.6%+37.3%
Q2 2019+12.8%+11.8%+3.8%
Q1 2019-10.1%-12.5%-20.1%
Q4 2018-16.2%-13.8%-15.2%
Q3 2018+23.3%+31.7%+22.1%
Q2 2018+0.0%-0.4%+4.4%
Q1 2018+6.6%+6.1%+8.7%
Q4 2017+7.3%+10.9%-0.5%
Q3 2017-13.7%-15.0%-8.8%
Q2 2017-8.7%-9.1%-13.2%
Q1 2017+12.1%+12.5%+10.9%
Q4 2016-6.4%-7.6%+4.2%
Q3 2016-9.6%-10.8%+4.6%
Q2 2016+2.7%+3.2%+4.3%
Q1 2016-16.9%
Q4 2015-6.8%
Q3 2015-15.6%
Q2 2015-18.4%
Q1 2014-16.5%
Q1 2015-12.5%
Q4 2012-0.7%
Q4 2014+15.5%
Q3 2013-1.9%
Q3 2014+0.7%
Q2 2013+2.1%
Q4 2013+2.1%
Q2 2014+5.4%
Q1 2013

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