El Pollo Loco Holdings, Inc. Provides Business Update in Light of COVID-19 Pandemic

COSTA MESA, Calif., Jan. 12, 2021 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) (the “Company”) today provided an update on the impact the COVID-19 pandemic had on its business during the fourth quarter ended December 30, 2020.   

• System-wide comparable restaurant sales for the fourth quarter decreased 0.2%. The decrease consisted of a 3.0% decline in company-operated comparable restaurant sales, partially offset by a 1.8% increase in franchise restaurants. These compare to system-wide, company-operated and franchise restaurant growth of 3.9%, 4.3% and 3.6%, respectively, during the fourth quarter of 2019. System-wide comparable restaurant sales declined approximately 2.0% in Los Angeles and surrounding areas while increasing approximately 3.0% in other markets.
• Fourth quarter revenue is expected to be $109.5 – $110.5 million, reflecting the Company’s comparable restaurant sales performance, which was negatively impacted by reduced operating hours in many of the Company’s restaurants, and temporary restaurant closures required to ensure the safety of employees and customers.  
• During the quarter, the Company incurred approximately $2.5 million in COVID related expenses, of which $1.7 million was unanticipated as of its third quarter earnings call. These expenses were primarily due to leaves of absence and overtime pay.  
• The vast majority of El Pollo Loco restaurants continue to operate on a take-away, mobile pick-up and delivery basis only, as well as maintaining drive-thru operations where available, in light of the government-mandated closures to our dining rooms.   At the start of 2020, 40% of total sales were driven through the drive thru, which has grown to nearly 70% today. Over the same period, delivery and digital sales have doubled, growing to 6% and 10% of total sales, respectively.

Bernard Acoca, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “As with much of the restaurant industry, during November and December many of our employees and customers have been impacted by the ongoing and increased spread of COVID-19, particularly in Los Angeles and the surrounding areas in which nearly 60% of our system restaurants are located.  In order to maintain the safety of our employees and customers, we were required to implement actions in our restaurants in light of the COVID-19 pandemic that negatively impacted both our sales and expenses during the quarter.  El Pollo Loco is a people-first company and we will continue to take all necessary measures to ensure the health, safety and wellbeing of our employees, franchisees and customers.  We remain confident that the strategies we have in place will drive sales and profit growth once we get through the worst of the pandemic.”