El Pollo LoCo Q2 Sales Miss Views, Shares Drop

Shares of El Pollo LoCo Holdings Inc LOCO dropped more than 12 percent in after-hours trading after the company reported downbeat sales for the second quarter. However, the company's earnings exceeded analysts' estimates. The Costa Mesa, California-based company posted quarterly net income of $7.2 million, or $0.18 per share, versus $6.6 million, or $0.22 per share, in the year-ago period. Pro forma earnings rose to $0.19 per share from $0.16 per share. Its total revenue climbed to $89.5 million from $86.9 million. However, analysts were expecting earnings of $0.18 per share on revenue of $93 million. The average estimate among 25 Estimize users was for earnings of $0.19 per share and revenue of $93.74 million. Company-operated restaurant revenue climbed 2.7 percent year-over-year to $83.6 million in the second quarter. System-wide comparable restaurant sales rose 1.3 percent in the quarter. Comparable company-operated restaurant sales slipped 0.5 percent, while franchised comparable restaurant sales rose 2.6 percent. Its adjusted EBITDA surged 2.6 percent to $17.0 million. Steve Sather, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., said, "Our second quarter results included pro forma net income growth of over 20%, as well as our 16th consecutive quarter of system-wide comparable restaurant sales growth. We remain focused on delivering the core elements of our QSR+ brand promise and are confident in the remainder of the year with the addition of shrimp and the rebalancing of our menu with more value focused products." El Pollo Loco continues to project 2015 pro forma earnings of $0.67 to $0.71 per share. The company now expects 2015 system-wide comparable restaurant sales to rise 3.0 percent. El Pollo Loco shares tumbled 12.58 percent to $16.05 in the after-hours trading session.