Latest news with #LizWilliams
Yahoo
16-05-2025
- Business
- Yahoo
LOCO Q1 Earnings Call: Menu Innovation and Brand Relaunch Aim to Counter Flat Sales
Fast food chain El Pollo Loco (NASDAQ:LOCO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 2.6% year on year to $119.2 million. Its non-GAAP profit of $0.19 per share was in line with analysts' consensus estimates. Is now the time to buy LOCO? Find out in our full research report (it's free). Revenue: $119.2 million vs analyst estimates of $118.5 million (2.6% year-on-year growth, 0.6% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.19 (in line) Adjusted EBITDA: $13.93 million vs analyst estimates of $13.71 million (11.7% margin, 1.6% beat) Operating Margin: 7.5%, in line with the same quarter last year Free Cash Flow Margin: 1.1%, down from 6% in the same quarter last year Locations: 499 at quarter end, up from 495 in the same quarter last year Same-Store Sales were flat year on year (5.1% in the same quarter last year) Market Capitalization: $284.9 million El Pollo Loco's first quarter was shaped by a challenging consumer environment, with management citing continued pressure on consumers across all demographics, including the Hispanic segment. CEO Liz Williams acknowledged that the brand turnaround remains a work in progress, highlighting recent menu innovation—like the Mango Habanero chicken—and operational investments such as new kitchen equipment and customer feedback systems. Williams emphasized that while initial results were modest, these efforts are laying the groundwork for improved performance in the coming quarters. Looking ahead, management is focused on a brand relaunch and the introduction of new menu items, including fresco wraps, salads, and quesadillas, as key strategies to drive guest traffic and improve value perception. Williams noted, 'Our brand relaunch couldn't come at a better time,' while CFO Ira Fils projected moderate labor and commodity cost inflation for the rest of the year, supported by ongoing productivity initiatives and supply chain optimizations. The company is targeting a sequential acceleration in same-store sales later in the year, driven by these initiatives. El Pollo Loco's leadership identified menu innovation, operational improvements, and development momentum as central to the first quarter's performance and near-term strategy. Management cited both internal and external headwinds that contributed to flat same-store sales and pressured margins, but expressed conviction in the underlying brand transformation and upcoming product launches. Menu innovation impact: The launch of Mango Habanero chicken attracted new guests and demonstrated consumer appetite for new flavors. Management believes ongoing menu updates, like the upcoming fresco wraps and quesadillas, will further drive trial and value perception. Brand relaunch strategy: The company is undertaking a comprehensive brand relaunch this quarter, including a new aesthetic and marketing campaign aimed at modernizing the brand and reinforcing its focus on quality and affordability. Operational efficiency initiatives: Investments in kitchen equipment and rollout of holding cabinets have improved productivity in company-owned restaurants. New technology, such as kiosks, is being used to streamline ordering and could eventually enhance guest engagement. Customer feedback integration: The implementation of a new customer feedback system has highlighted opportunities in service consistency, particularly order accuracy and hospitality. Management is addressing these issues through back-to-basics training and new standards programs. Development pipeline growth: The company opened two new restaurants in Q1 and expects at least 10 openings in 2025, with the majority outside California. Early signs suggest the pipeline is strengthening for accelerated growth in 2026, with the next opening marking the chain's 500th location. Management's outlook for the remainder of the year centers on driving traffic with menu innovation, operational improvements, and a brand relaunch, while navigating ongoing consumer and cost pressures. Menu innovation and value focus: Upcoming launches of fresco wraps, salads, and quesadillas are expected to address consumer demand for affordable, portable options, targeting both core and younger audiences. Operational productivity gains: Continued rollout of kitchen equipment, labor deployment improvements, and supply chain optimization (Project FIRE) are projected to help offset wage and commodity inflation, supporting margin stability. Remodels and new builds: Modernization of existing restaurants and the introduction of a lower-cost prototype ('Iconic') are intended to improve unit economics and accelerate development, particularly in emerging markets outside California. Management noted these initiatives are expected to boost both sales performance and cash returns. Jeremy Hamblin (Craig-Hallum Capital Group): Asked about expectations for Q2 same-store sales and the timeline for impact from new menu items; management indicated continued headwinds in Q2 but expects sequential improvement later in the year as new products launch. Jake Bartlett (Truist Securities): Inquired about regional and demographic performance, specifically pressures on the Hispanic customer; CEO Liz Williams confirmed broad consumer pullback and added that the Hispanic segment is experiencing additional strain. Jake Bartlett (Truist Securities): Requested clarity on menu pricing trends and cost of goods; CFO Ira Fils stated menu price increases will moderate to around 3% for the year, with further efficiencies expected from supply chain projects. Andy Barish (Jefferies): Probed into operational execution and the impact of weather and product cycles on March sales; management cited unusually rainy weather in Southern California and acknowledged that repeat visits for Mango Habanero could have been stronger. Andy Barish (Jefferies): Sought an update on kiosk rollout and its effect on productivity; management said kiosks are in most company restaurants and are being optimized for better guest engagement and merchandising. In future quarters, the StockStory team will be watching (1) the performance of new menu items like fresco wraps and quesadillas and their impact on guest traffic, (2) the effectiveness of the brand relaunch in shifting consumer perception and driving sales, and (3) the pace of new restaurant openings, particularly outside California. Additionally, operational execution—especially improvements in service consistency and margin recovery—will be key factors to monitor. El Pollo Loco currently trades at a forward EV-to-EBITDA ratio of 4.4×. Should you load up, cash out, or stay put? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
El Pollo Loco Holdings Inc (LOCO) Q1 2025 Earnings Call Highlights: Revenue Growth Amid ...
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. El Pollo Loco Holdings Inc (NASDAQ:LOCO) reported a 2.6% increase in total revenue for Q1 2025 compared to the same period in 2024. The company successfully launched Mango Habanero Fire Grilled Chicken, which drove trial from new guests and showcased the potential of menu innovation. El Pollo Loco Holdings Inc (NASDAQ:LOCO) opened two new restaurants in Q1 and plans to open at least 10 more in 2025, indicating growth in their restaurant footprint. The company is focusing on improving customer experience through investments in operations and a new customer feedback system. El Pollo Loco Holdings Inc (NASDAQ:LOCO) is optimistic about its brand relaunch and menu innovations, including new products like fresco wraps and quesadillas, which are expected to drive growth in the latter half of the year. The company reported a decrease in restaurant contribution margin to 16% from 17.6% in the previous year, primarily due to labor inflation and higher operating costs. Comparable restaurant sales decreased by 1.3% for franchise-operated restaurants, indicating challenges in maintaining sales momentum. El Pollo Loco Holdings Inc (NASDAQ:LOCO) experienced a 3.8% decrease in transactions, despite an increase in average check size. The company faced headwinds from consumer pullback and macroeconomic uncertainties, impacting sales performance. Weather conditions in Southern California negatively affected sales, particularly during lunch hours, contributing to softer performance in March. Warning! GuruFocus has detected 6 Warning Signs with LOCO. Q: What are your expectations for Q2 same-store sales given the current environment? A: We expect headwinds to continue in Q2 due to consumer pullback. However, we are focusing on our brand relaunch and menu innovations like the quesadilla to drive growth. We anticipate easier comparisons in Q3 and Q4, which should help improve our performance. - Liz Williams, CEO Q: How effective was the Mango Habanero launch, and what impact do you expect from upcoming product launches? A: Mango Habanero drove trial and showed that consumers want innovation. We are excited about our upcoming launches of Fresco wraps and salads in May and quesadillas in June. These products are expected to attract different consumer segments and drive sales. - Liz Williams, CEO Q: Can you provide more details on the impact of kitchen equipment investments on labor costs? A: We've rolled out equipment like holding cabinets that improve chicken quality and reduce labor time. These investments are expected to enhance operational efficiency and help manage labor costs. - Liz Williams, CEO and Ira Phils, CFO Q: Are there regional differences in consumer behavior, particularly among Hispanic consumers? A: We see a consistent consumer pullback across regions and income bands. The Hispanic consumer is under pressure, but the trend is similar across different demographics. - Liz Williams, CEO Q: What is your guidance for menu pricing for the year? A: We expect menu pricing to be around 3% for the year, with 3% in Q2 and about 2% in Q3 and Q4. - Ira Phils, CFO Q: Can you elaborate on the development pipeline momentum? A: We are confident in opening 10 new units this year, and the pipeline for next year is strong. We expect to accelerate growth beyond the 10 units planned for this year. - Liz Williams, CEO Q: What operational challenges did you face in March, and how are you addressing them? A: March was impacted by weather and consumer uncertainty. We also saw some operational execution issues with Mango Habanero. We are focusing on improving order accuracy and customer service to address these challenges. - Liz Williams, CEO Q: What is the status of the kiosk rollout, and what benefits are you seeing? A: Kiosks are installed in most company restaurants, with some remaining installations planned for this year. We see opportunities to use kiosks as merchandising tools to drive guest engagement and check size. - Ira Phils, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
El Pollo Loco (NASDAQ:LOCO) Posts Better-Than-Expected Sales In Q1
Fast food chain El Pollo Loco (NASDAQ:LOCO) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 2.6% year on year to $119.2 million. Its non-GAAP profit of $0.19 per share was in line with analysts' consensus estimates. Is now the time to buy El Pollo Loco? Find out in our full research report. Revenue: $119.2 million vs analyst estimates of $118.5 million (2.6% year-on-year growth, 0.6% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.19 (in line) Adjusted EBITDA: $13.93 million vs analyst estimates of $13.71 million (11.7% margin, 1.6% beat) Operating Margin: 7.5%, in line with the same quarter last year Locations: 499 at quarter end, up from 495 in the same quarter last year Same-Store Sales were flat year on year (5.1% in the same quarter last year) Market Capitalization: $281 million Liz Williams, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, 'Our first quarter results fell short of our expectations on sales and store level profit. Despite the challenges we faced with the dynamic consumer environment, we delivered proof points that reinforce our belief in the brand's long-term opportunity. From showing that menu innovation can drive trial of the brand through the launch of Mango Habanero, to identifying opportunities to further improve operational execution in our restaurants, we are proud of our accomplishments and believe we still have tremendous upside. Looking ahead, our focus remains squarely on executing the multitude of initiatives that we have in place to drive our brand forward.' With a name that translates into 'The Crazy Chicken', El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $476 million in revenue over the past 12 months, El Pollo Loco is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. As you can see below, El Pollo Loco grew its sales at a weak 1.4% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it barely increased sales at existing, established dining locations. This quarter, El Pollo Loco reported modest year-on-year revenue growth of 2.6% but beat Wall Street's estimates by 0.6%. Looking ahead, sell-side analysts expect revenue to grow 4.7% over the next 12 months. Although this projection suggests its newer menu offerings will spur better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. A restaurant chain's total number of dining locations often determines how much revenue it can generate. El Pollo Loco sported 499 locations in the latest quarter. Over the last two years, it has generally opened new restaurants, averaging 1% annual growth. This was faster than the broader restaurant sector. When a chain opens new restaurants, it usually means it's investing for growth because there's healthy demand for its meals and there are markets where its concepts have few or no locations. A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth at restaurants open for at least a year. El Pollo Loco's demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company's same-store sales have grown by 1.3% per year. This performance suggests it should consider improving its foot traffic and efficiency before expanding its restaurant base. In the latest quarter, El Pollo Loco's year on year same-store sales were flat. This was a meaningful deceleration from its historical levels. We'll be watching closely to see if El Pollo Loco can reaccelerate growth. It was encouraging to see El Pollo Loco beat analysts' revenue and EBITDA expectations this quarter. On the other hand, its same-store sales slightly missed. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The stock remained flat at $9.50 immediately after reporting. Should you buy the stock or not? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Globe and Mail
16-04-2025
- Business
- Globe and Mail
El Pollo Loco Holdings, Inc. to Announce First Quarter 2025 Results on Thursday, May 1, 2025
COSTA MESA, Calif., April 16, 2025 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. ('El Pollo Loco') (NASDAQ: LOCO) today announced that it will host a conference call to discuss its first quarter 2025 financial results on Thursday, May 1, 2025 at 4:30 PM Eastern Time. Hosting the call will be Liz Williams, Chief Executive Officer, and Ira Fils, Chief Financial Officer. A press release with first quarter 2025 financial results will be issued that same day, shortly after the market close. The conference call can be accessed live over the phone by dialing 201-493-6780. A replay will be available after the call and can be accessed by dialing 412-317-6671; the passcode is 13752366. The replay will be available until Thursday, May 15, 2025. The conference call will also be webcast live from the Company's corporate website at under the 'Events & Presentations' page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded. About El Pollo Loco El Pollo Loco (Nasdaq: LOCO) is the nation's leading fire-grilled chicken restaurant known for its craveable, flavorful, and better-for-you offerings. Our menu features innovative meals with Mexican flavors all made in our restaurants daily using quality ingredients. At El Pollo Loco, inclusivity is at the heart of our culture. Our community of over 4,000 employees reflects our commitment to creating a workplace where everyone has a seat at our table. Since 1980, El Pollo Loco has successfully expanded its presence, operating more than 495 company-owned and franchised restaurants across seven U.S. states: Arizona, California, Colorado, Nevada, Texas, Utah and Louisiana, along with eight licensed restaurant locations in the Philippines. For more information or to place an order, visit the Loco Rewards APP or Follow us on Instagram, TikTok, Facebook, or X.
The Guardian
13-04-2025
- Politics
- The Guardian
Trafficking victims rejecting UK government support because they fear being deported
Thousands of trafficking victims have rejected the government's support, many due to fear of the authorities or of being deported, lawyers have said. Nearly 6,000 trafficking victims rejected support from the government's National Referral Mechanism (NRM) for victims of modern slavery last year, according to data based on research from the British Institute for International and Comparative Law and the Human Trafficking Foundation at the University of Oxford. Researchers found a range of reasons for this among respondents, including fear of traffickers, receiving support elsewhere, wanting to put things of being trafficked behind them and being reluctant to engage with UK authorities. There were more than 19,000 NRM referrals last year. The number of people referred as victims to the NRM but refused at the initial stage has shot up 290% in two years, from 12% in 2022 to 47% in 2024, according to research from the organisation After Exploitation. Separate research from that group found that people in only 133 of 51,193 modern slavery cases reported to the Home Office between January 2021 and May 2024 had applied for compensation as victims. Home Office freedom of information data obtained by the Observer revealed thousands of trafficking victims from Albania and Vietnam – two nations where many victims come from – were returned to these countries after engaging with the NRM. According to the data, the returns were a mix of voluntary and January 2020 and September last year, 2,427 trafficking victims were returned to these two countries, according to the FoI data. All either had positive reasonable grounds or positive conclusive grounds decisions from officials that they were trafficking victims. Liz Williams, head of policy impact at the Modern Slavery and Human Rights Policy and Evidence Centre, said: 'Nearly 6,000 people choosing not to be referred for statutory support is very concerning and shows a system that has long been stretched and under pressure. 'Our research shows that many of them do so on the basis of fear of the authorities or poor-quality information they receive about the system that's meant to support them. Part of the answer is also low trust in authorities, especially after anti-immigration laws that would strip many survivors of protections.' Last month marked the 10th anniversary of the landmark Modern Slavery Act, pioneered by former prime minister Theresa May. In a parliamentary debate last month, Craig Murray MP said of the NRM, which has a significant backlog and takes an average of 831 days to process a trafficking case: 'The tool is currently all but broken down.' Safeguarding minister Jess Phillips said that 100 new staff had been appointed to help clear the NRM backlog, which she has pledged to eradicate by December 2026. Esme Madill, a solicitor at the Migrant & Refugee Children's Legal Unit, which has a project for young Albanian trafficking victims called Breaking The Chains, said some trafficking victims they worked with had been retrafficked after being returned to Albania. 'The government's current approach to Albanian victims of trafficking, insisting they can be safely returned to Albania, is resulting in serious harm as men, women and children are retrafficked both here in the UK and in Albania,' she said. 'Young people are chained by their ankles in grow houses where they are imprisoned by traffickers, often alone for 23 hours a day, in life threatening conditions, exposed to toxic chemicals and fire-hazardous illegal wiring. The physical and mental health impact upon them is devastating. But these same children and young people are rightly not confident that seeking protection from UK authorities will keep them safe from harm. We supported a 17-year-old girl who had fled trafficking but was nevertheless returned to Albania and immediately forced into prostitution.' According to a report from the House of Lords into the Modern Slavery Act, published last October, only 2% of victims see their traffickers prosecuted, while research from the Modern Slavery and Human Rights Policy and Evidence Centre has found that there may be more trafficking victims than there are perpetrators behind bars. Williams said: 'Ten years on, the Modern Slavery Act's promise of justice remains unfulfilled. Thousands of people are exploited in severe conditions every year, facing threats, violence and intimidation. 'We need a new strategy, with a focus on prevention and policies addressing conditions that put people at risk of exploitation such as poverty, exclusion or lack of opportunities to provide for their families.' The Home Office said it was 'working hard to eliminate the backlog of NRM conclusive grounds decisions after a record number of referrals last year. Potential victims of modern slavery seeking asylum will always be treated with care, and no individual found to be at genuine risk of serious harm will be expected to return to their country of origin.'
