IRVINE Calif. El Pollo Loco Inc., operator or franchisor of 359 namesake fast-casual restaurants, narrowed its fourth-quarter net loss to $1.2 million, from a year-earlier loss of $15.4 million, primarily on the elimination of year-earlier expenses related to the company's November 2005 acquisition by affiliates of Trimaran Capital LLC.
Revenues for the fourth quarter ended Dec. 27 increased 7.9 percent to $64.6 million. Systemwide same-store sales rose 2.3 percent.
Net income for the full year was $600,000, an increase of $12.4 million from a net loss of $11.8 million for fiscal 2005. The net loss in fiscal 2005 was primarily a result of acquisition-related expenses, the company said. In its latest year, El Pollo Loco did log $1.8 million in costs related to a now-abandoned initial public offering.
Annual revenues increased 9.6 percent to $259.9 million. Same-store sales for the system increased 5.3 percent from a year earlier.
On Jan. 1, California's minimum wage increased from $6.75 per hour to $7.50 per hour and El Pollo Loco implemented a price increase to offset the impact, it said. As a result of the price increases, sales are expected to increase 2 percent in fiscal 2007. Also this year, El Pollo Loco expects to open 10 corporate restaurants and 20 franchised units, up from the openings of 9 corporate and 17 franchised locations in fiscal 2006.
