Upcoming AWS Coverage on Cheesecake Factory Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on EL POLLO LOCO HOLDINGS, INC. (NASDAQ: LOCO). The Company released its first quarter fiscal 2017 financial results on May 04, 2017. The Tex-Mex fast food chain exceeded earnings expectations. Register with us now for your free membership at:

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One of EL POLLO LOCO HOLDINGS' competitors within the Restaurants space, The Cheesecake Factory Inc. (NASDAQ: CAKE), reported on May 04, 2017, its financial results for Q1 FY17, which ended on April 04, 2017. AWS will be initiating a research report on Cheesecake Factory in the coming days.

Today, AWS is promoting its earnings coverage on LOCO; touching on CAKE. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended March 29, 2017, El Pollo Loco's total revenue increased 5.7% to $99.8 million compared to $94.4 million in Q1 2016. The Company's revenue numbers came in below analysts' consensus of $100 million in revenue.

El Pollo Loco's adjusted EBITDA was $16.0 million for both Q1 2017 and the prior year's comparable period.

El Pollo Loco's net income decreased to $4.9 million, or $0.12 per diluted share, in Q1 2017 compared to $5.4 million, or $0.14 per diluted share, in Q1 2016. The reported quarter results included a $0.9 million pre-tax expense, primarily related to a closed-store reserve for the closure of two restaurants. The Company's pro-forma net income was $6.1 million, or $0.16 per diluted share, in the reported quarter compared to $6.6 million, or $0.17 per diluted share, in the prior year's same quarter. The results topped Wall Street's expectations for earnings of $0.14 per share.

Operating Details

For Q1 2017, Company-operated restaurant revenue increased 5.7% to $93.4 million compared to $88.4 million in the year ago same period. The growth in Company-operated restaurant revenue was largely driven by the 23 new restaurants that were opened during and subsequent to Q1 2016.

El Pollo Loco's Franchise revenue in Q1 2017 increased 5.6% to $6.3 million compared to $6.0 million in Q1 2016. The growth in franchise revenue was largely driven by the contribution from the 17 new restaurants which were opened during and subsequent to Q1 2016. Franchised comparable restaurant sales decreased 0.2% during the reported quarter.

During Q1 2017, , El Pollo Loco's System-wide comparable restaurant sales declined 0.3%, including a 0.4% decrease for Company-operated restaurants, driven by a 2.2% decline in transactions, partially offset by a 1.9% increase in average check and a 0.2% decrease for franchised restaurants.

For Q1 2017, El Pollo Loco's Restaurant contribution was $19.0 million, or 20.3% of Company-operated restaurant revenue, compared to $18.3 million, or 20.7% of Company-operated restaurant revenue, in Q1 2016. The decrease in restaurant contribution margin was primarily the result of higher labor costs, due to increased minimum wage, and higher occupancy and other operating expenses associated with new restaurants opened in 2016 and 2017, partially offset by an improvement in food costs, related to lower chicken prices and lower freight costs.

During Q1 2017, El Pollo Loco closed one restaurant in Texas and one restaurant in Arizona, the assets of which were previously recorded as impaired during Q3 2016. The Company recorded $0.9 million of asset impairment and closed-store reserves, primarily related to the closure of the two restaurants.

2017 Outlook

El Pollo Loco expects FY17 pro-forma diluted net income per share in the range of $0.65 to $0.69. During FY17, the Company is forecasting for System-wide comparable restaurant sales growth of flat to 2.0%, opening of 15-20 new Company-owned restaurants and 8-12 new franchised restaurants. El Pollo Loco expects restaurant contribution margin of 20.4% to 20.8%; G&A expenses of between 8.5% and 8.7% of total revenue excluding legal fees related to securities class action litigation; and adjusted EBITDA of between $67.0 and $70.0 for FY17.

Stock Performance

On Monday, May 22, 2017, the stock closed the trading session at $13.70, marginally climbing 0.37% from its previous closing price of $13.65. A total volume of 240.30 thousand shares have exchanged hands. EL POLLO LOCO's stock price rallied 11.84% in the last month, 4.58% in the past three months, and 10.93% in the previous six months. Furthermore, on a year to date basis, the stock gained 11.38%. Shares of the company have a PE ratio of 30.11 and currently have a market cap of $526.59 million.

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SOURCE: Active Wall Street