- El Pollo Loco's (NASDAQ:LOCO) system-wide comparable restaurant sales rose a mere 0.6% Y/Y in Q3, down from 1.3% in Q2 and 5.1% in Q1. Comps were flat for company-owned restaurants, and up 1.1% for franchise restaurants.
- 2015 system-wide comp guidance has been cut to 1.7% from 3%, and EPS guidance to $0.67-$0.69 from $0.67-$0.71 (consensus is at $0.68). Restaurant contribution margin guidance remains at 21.2%-21.5%. 13-15 new company restaurants and 5 new franchise restaurants are expected this year, down from a prior 16 and 8.
- Traffic at comparable company-owned restaurants fell 1.9% Y/Y in Q3, while average check rose 1.9%. Boosting EPS: Restaurant contribution margin rose 50 bps Y/Y to 21.2%, something the fast-casual chain attributes to "lower occupancy and other operating expenses as well as lower food and paper costs, partially offset by increased labor and related expenses on higher worker's compensation and medical insurance claims activity."
- Shares have fallen to $10.59 after hours. The 52-week low is $10.16.
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Q3 results, PR