El Pollo Loco Holdings Inc. reported a sharp profit decrease in the third quarter ended Sept. 30, the company said Thursday.
The Costa Mesa, Calif.-based grilled-chicken concept reported that net income fell 81.9 percent to $4.7 million, or 12 cents a share, from $25.8 million, or 70 cents a share, in the same period a year ago. Revenue increased to $88.9 million, compared with $86.6 million.
Same-store sales rose 0.6 percent, including flat growth for company-owned restaurants and a 1.1-percent increase for franchised units.
At company-operated restaurants, the flat same-store sales were a result of a 1.9-percent decrease in traffic that was partially offset by a 1.9-percent increase in average check, El Pollo Loco said.
“We are taking actions to reengage our value-conscious customers and have several current initiatives to enhance the overall experience of our customers,” Steve Sather, El Pollo Loco president and CEO, said in a statement. “Through these actions, we will ensure that we deliver on the core elements of our QSR-plus brand promise.”
El Pollo Loco has been expanding its presence in the Houston and Dallas markets through company and franchise development.
“Our new restaurant pipeline is strong and growing stronger, and we continue to be excited about the long runway of growth that we believe is ahead of us in both new and existing markets,” Sather said.
The company updated its guidance for fiscal 2015, trimming
its expected openings for the fiscal year to 13 to 15 new company-owned units, from an earlier forecast of 16 locations, and five franchised restaurants, from earlier guidance of eight units.
The company also reduced its expected net income to a range of 67 cents to 69 cents a share from an earlier forecast of 67 cents to 71 cents a share. The company said it was reducing its expected same-store sales growth to about 1.7 percent, from a previously expected 3 percent.
El Pollo Loco has 415 company-owned and franchised restaurants in Arizona, California, Nevada, Texas and Utah.
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