El Pollo Loco (LOCO) Q4 2024 earnings summary

Executive summary

• Achieved same-store sales growth, margin expansion, and revived development pipeline in 2024, marking the first year of a brand transformation focused on modernization and customer experience.

• Q4 2024 total revenue was $114.3 million, up from $112.2 million in Q4 2023, with system-wide comparable restaurant sales increasing 0.5%.

• Net income rose to $6.0 million ($0.20 per diluted share) from $4.4 million ($0.14 per share) in Q4 2023; adjusted net income was $5.9 million ($0.20 per share).

• Adjusted EBITDA reached $14.3 million, up from $13.6 million in Q4 2023.

• CEO highlighted 2024 as a foundational year, with progress on key objectives and a focus on profitable growth for 2025.

Financial highlights

• Company-operated restaurant revenue rose 1.8% to $95.6 million, driven by a 1.6% increase in comparable sales and new openings.

• Franchise revenue increased 2.5% to $11.2 million, aided by four new franchise openings and a company-to-franchise sale.

• Restaurant contribution margin for Q4 was 16.7%, up from 15.8% year-over-year.

• General and administrative expenses rose to $11.1 million, mainly due to higher management bonus accruals.

• System-wide sales for Q4 2024 were $262.2 million, up from $257.6 million year-over-year.

Outlook and guidance

• 2025 guidance includes opening 1-2 company-owned and 8-9 franchise restaurants, capital spending of $30-$34 million, G&A expenses of $48-$51 million, and an effective tax rate of 27.5%-28.5%.

• Restaurant contribution margin expected in the 17.25%-17.75% range for 2025, including a 25 basis point impact from tariffs.

• System-wide comparable same-store sales up 0.6% quarter-to-date through February 26, 2025.