share_log

Why Restaurant Chain El Pollo Loco's Shares Are Soaring Today

Benzinga ·  May 3 22:15

El Pollo Loco Holdings, Inc (NASDAQ:LOCO) shares are soaring after the company reported first-quarter FY24 earnings.

Yesterday, the company reported first-quarter FY24 sales growth of 1.4% year-on-year to $116.15 million, beating the analyst consensus estimate of $111.083 million.

System-wide comparable restaurant sales increased 5.1%. Company operated restaurants constituted 83.6% of total revenue while Franchise made up 9.8% of total revenue.

Operating income for the quarter increased 24% to $9.7 million, with an operating margin of 8.3%.

Adjusted EBITDA of $15.7 million gained 28.7% in the quarter. Adjusted EPS of $0.22 beat the consensus estimate of $0.14.

EI Pollo held $9.1 million in cash and equivalents as of March 27.

Outlook: For the remainder of 2024, EI Pollo expects to open two new company-owned restaurants and five to seven new franchised restaurants and sees a capital spend of $25 million – $28 million.

Price Action: LOCO shares are trading higher by 19.5% at $10.28 at the last check Friday.

Photo credit: El Pollo Loco

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment