SECURITIES AND EXCHANGE COMMISSION
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Item 2.02 Results of Operations and Financial Condition.
On January 10, 2022, El Pollo Loco Holdings, Inc. (the “Company”) issued a press release to provide an update on the impact of the COVID-19 pandemic on its business during the fourth quarter ended December 29, 2021. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.
Item 9.01 Financial Statements and Exhibits.
Cover Page Interactive Data File (embedded within the Inline XBRL document)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
El Pollo Loco Holdings, Inc.
Date: January 10, 2022
/s/ Laurance Roberts
Interim Chief Executive Officer and Chief Financial Officer
El Pollo Loco Holdings, Inc. Provides Fourth Quarter Business Update
COSTA MESA, CA – January 10, 2022 – El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) (the “Company”), in conjunction with the company’s participation at the 24th annual ICR Conference, today provided an update on its business during the fourth quarter ended December 29, 2021.
|●||System-wide comparable restaurant sales for the fourth quarter increased 11.1% year-over-year. The increase consisted of a 6.2% increase in company-operated comparable restaurant sales and a 14.4% increase in franchise restaurants. On a two-year basis, system-wide comparable restaurant sales for the fourth quarter increased 10.3% consisting of a 0.3% increase in company-operated comparable restaurant sales and a 17.9% increase in franchise restaurants.|
|●||Fourth quarter revenue is expected to be $108.0 – $109.0 million, reflecting the system’s comparable restaurant sales performance. Reduced operating hours and sales channels due to continued staffing challenges negatively impacted company-operated comparable restaurant sales by an estimated 5 to 6 percentage points during the fourth quarter.|
Larry Roberts, Interim Chief Executive Officer and Chief Financial Officer stated, “We are pleased with the consistency of our sales during the fourth quarter, especially in light of continued industry-wide staffing challenges. We are keenly focused on staffing and retention in our company-owned restaurants and believe we are making tangible progress, especially in those locations that have been most challenged. We expect that these efforts, combined with enhanced training and simplified operations initiatives, will be significant sales drivers throughout 2022.”
The expected financial results are preliminary and unaudited, have not been reviewed by the Company’s independent registered public accountants, and remain subject to the completion of normal year-end accounting procedures and adjustments and are subject to change. The Company expects to release final financial and operating results for its fiscal fourth quarter and fiscal year ended December 29, 2021 during March 2021.
ICR Conference Participation
Company management will host a virtual fireside chat at the 24th Annual ICR Conference. The Company’s discussion will begin at 4:00 PM ET on Tuesday, January 11, 2022. Investors and interested parties may listen to a live webcast of this discussion from the corporate website at www.elpolloloco.com under the “Investors” tab, or directly through the ICR Conference website www.icrconference.com.
About El Pollo Loco
El Pollo Loco (Nasdaq:LOCO) is the nation’s leading fire-grilled chicken restaurant chain renowned for its masterfully citrus-marinated, fire-grilled chicken and handcrafted entrees using fresh ingredients inspired by Mexican recipes. With more than 475 company-owned and franchised restaurants in Arizona, California, Nevada, Texas, Utah and Louisiana, El Pollo Loco is expanding its presence in key markets through a combination of company and existing and new franchisee development. Visit us on our website at ElPolloLoco.com.
This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements because they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, sales levels, liquidity, prospects, growth, strategies and the industry in which we operate and our outlook as COVID-19 conditions improve. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected.
While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties that could cause outcomes to differ materially from our expectations. These factors include, but are not limited to: the impact of the COVID-19 pandemic on our company, our employees, our customers, our partners, our industry and the economy as a whole, our franchisees ability to maintain operations in their individual restaurants, our ability to open new restaurants in existing and new markets and to expand our franchise system, including difficulty in finding sites and in negotiating acceptable leases; our ability to compete successfully and the intense competition in the restaurant industry; the adverse impact of economic conditions on our (i) operating results and financial condition, (ii) ability to comply with the terms and covenants of our debt agreements, and (iii) ability to pay or refinance our existing debt or to obtain additional financing; vulnerability to changes in consumer preferences and economic conditions; political and social factors, including regarding trade, immigration and customer preferences; vulnerability to conditions in the greater Los Angeles area; vulnerability to natural disasters given the geographic concentration and real estate intensive nature of our business; increases in chicken and other input costs; our ability to recognize and respond to and effectively manage the impact of social media and our ability to expand our digital business, deliver orders and catering; delayed or canceled future restaurant openings; restaurant closures, due to financial performance or otherwise; and other risks set forth in our filings with the Securities and Exchange Commission from time to time, including under Item 1A, Risk Factors in our annual report on Form 10-K for the year ended December 30, 2020, and under Item A, Risk Factors in our quarterly reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 29, 2021, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission. These filings are available online at www.sec.gov, at www.elpolloloco.com or upon request from El Pollo Loco.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the ways that we expect. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
Fitzhugh Taylor, ICR
Hanna Gray, Edible