El Pollo Loco Holdings, Inc. Announces Second Quarter 2022 Financial Results
El Pollo Loco Holdings (LOCO) reported Q2 2022 revenue of $124.1 million, up from $122.0 million YoY. System-wide comparable restaurant sales increased by 7.5%.
However, income from operations fell to $10.4 million from $12.7 million in Q2 2021. Restaurant contribution dropped to 15.0% of revenue, down from 20.8%, influenced by inflation and rising costs. Net income was $7.1 million ($0.20 per diluted share), a decrease from $8.8 million ($0.24) a year earlier.
The company is opening 3-6 new company-owned restaurants in 2022.
- 7.5% increase in system-wide comparable restaurant sales.
- Franchise revenue grew by 20% to $10.1 million.
- Plan to open 3-6 new company-owned restaurants.
- Income from operations decreased from $12.7 million to $10.4 million.
- Net income declined from $8.8 million to $7.1 million.
- Restaurant contribution margin dropped from 20.8% to 15.0%.
COSTA MESA, Calif., Aug. 04, 2022 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended June 29, 2022
Highlights for the second quarter ended June 29, 2022 compared to the second quarter ended June 30, 2021 were as follows:
- Total revenue was
$124.1 million compared to$122.0 million . - System-wide comparable restaurant sales(1) increased
7.5% . - Income from operations was
$10.4 million compared to$12.7 million . - Restaurant contribution(1) was
$15.9 million , or15.0% of company-operated restaurant revenue, compared to$22.2 million , or20.8% of company-operated restaurant revenue. - Net income was
$7.1 million , or$0.20 per diluted share, compared to net income of$8.8 million , or$0.24 per diluted share. - Pro forma net income(1) was
$7.6 million , or$0.21 per diluted share, compared to$10.7 million , or$0.29 per diluted share. - Adjusted EBITDA(1) was
$15.4 million , compared to$19.9 million .
(1) System-wide comparable restaurant sales, restaurant contribution, pro forma net income and adjusted EBITDA are not presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are defined below under “Key Financial Definitions.” A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure is included in the accompanying financial data. See also “Non-GAAP Financial Measures.”
Larry Roberts, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “We were very pleased with our second quarter sales performance as our focus on brand differentiation and awareness through social media is paying off. This was reflected most recently in the success of our Shredded Beef Birria promotion, which contributed to our system-wide comparable restaurant sales growth of
Roberts added, “While system-wide comparable restaurant sales growth remains positive, similar to others in our industry, we are seeing some softening of consumer traffic and store-level margins continue to be challenged by the inflationary environment. Nevertheless, we continue to make meaningful and tangible progress towards our strategic initiatives, including improvement in our restaurants’ staffing levels, four-wall operational execution, and embedding our Familia culture across the organization. These efforts are highlighted by significant improvements in company-operated restaurant drive thru times and consumer metrics that are the strongest we have seen in a long time. As we look ahead, we expect these initiatives to strengthen our average unit volumes, improve our profitability and position us to accelerate growth of the El Pollo Loco brand.”
Second Quarter 2022 Financial Results
Company-operated restaurant revenue in the second quarter of 2022 decreased to
Franchise revenue in the second quarter of 2022 increased
Income from operations in the second quarter of 2022 was
General and administrative expenses in the second quarter of 2022 were
Net income for the second quarter of 2022 was
During the second quarter, the Company maintained its debt balance at
Subsequent Events
Subsequent to the quarter-end, on July 27, 2022, the Company entered into a new credit agreement which provides for a new
In connection with the Company’s entry into the new credit agreement, it terminated the interest rate swap previously used to hedge interest rate risk. In settlement of this swap, the Company received approximately
2022 Outlook
The company is providing the following expectations for 2022:
- The opening of three to six new company-owned restaurants and six to ten new franchised restaurants.
- Capital spend of
$20.0 -$25.0 million - Pro forma income tax rate of
26.5% .
Key Financial Definitions
System-wide sales are neither required by, nor presented in accordance with, GAAP. System-wide sales are the sum of company-operated restaurant revenue and sales from franchised restaurants. The Company’s total revenue in the consolidated statements of income is limited to company-operated restaurant revenue and franchise revenue from the Company’s franchisees. Accordingly, system-wide sales should not be considered in isolation or as a substitute for our results as reported under GAAP. Management believes that system-wide sales are an important figure for investors because they are widely used in the restaurant industry, including by our management, to evaluate brand scale and market penetration.
Comparable restaurant sales reflect the change in year-over-year sales for the comparable company, franchised and total system restaurant base. The comparable restaurant base is defined to include those restaurants open for 15 months or longer and excludes restaurants that were closed during the applicable period. At June 29, 2022, there were 183 restaurants in our comparable company-operated restaurant base and 465 restaurants in our comparable system restaurant base.
Restaurant contribution and restaurant contribution margin are neither required by, nor presented in accordance with, GAAP. Restaurant contribution is defined as company-operated restaurant revenue less company restaurant expenses, which includes food and paper costs, labor and related expenses, and occupancy and other operating expenses. Restaurant contribution excludes certain costs, such as general and administrative expenses, depreciation and amortization, asset impairment and closed-store reserves and other costs that are considered normal operating costs. Accordingly, restaurant contribution is not indicative of overall Company results and does not accrue directly to the benefit of shareholders because of the exclusion of certain corporate-level expenses. Restaurant contribution margin is defined as restaurant contribution as a percentage of net company-operated restaurant revenue. See also “Non-GAAP Financial Measures.”
EBITDA and adjusted EBITDA are neither required by, nor presented in accordance with, GAAP. EBITDA represents net income before interest expense, provision for income taxes, depreciation, and amortization, and adjusted EBITDA represents EBITDA before items that we do not consider representative of our underlying operating performance, as identified in the GAAP reconciliation in the accompanying financial data. See also “Non-GAAP Financial Measures.”
Pro forma net income is neither required by, nor presented in accordance with, GAAP. Pro forma net income represents net income adjusted for (i) costs (or gains) related to loss (or gains) on disposal of assets or assets held for sale and asset impairment and closed store costs reserves, (ii) amortization expense and other estimate adjustments (whether expense or income) incurred on the Tax Receivable Agreement (“TRA”) completed at the time of our IPO, (iii) legal costs associated with securities class action litigation, (iv) extraordinary legal settlement costs, (v) insurance proceeds received related to securities class action legal expenses and (vi) provision for income taxes at a normalized tax rate of
Conference Call
The Company will host a conference call to discuss financial results for the second quarter of 2022 today at 4:30 PM Eastern Time. Larry Roberts, Chief Executive Officer and Ira Fils, Chief Financial Officer will host the call.
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 13729625. The replay will be available until Thursday, August 18, 2022. The conference call will also be webcast live from the Company’s corporate website at investor.elpolloloco.com 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 chain renowned for its masterfully citrus-marinated, fire-grilled chicken and handcrafted entrees using fresh ingredients inspired by Mexican recipes. With more than 480 company-owned and franchised restaurants in Arizona, California, Nevada, Texas, Utah, and Louisiana, El Pollo Loco is expanding its presence in key markets through a combination of company and existing and new franchisee development. Visit us on our website at ElPolloLoco.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this press release are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements because they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. They appear in a number of places throughout this press release and include our 2022 outlook and statements regarding our ability to improve growth and profitability in the current challenging macroeconomic environment, as well as our ongoing business intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, sales levels, liquidity, prospects, growth, strategies and the industry in which we operate. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected.
While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties that could cause outcomes to differ materially from our expectations. These factors include, but are not limited to: the impact of the COVID-19 pandemic on our company, our employees, our customers, our partners, our industry and the economy as a whole, as well as our franchisees’ ability to maintain operations in their individual restaurants; our ability to open new restaurants in new and existing markets, including difficulty in finding sites and in negotiating acceptable leases; our ability to compete successfully with other quick-service and fast casual restaurants; vulnerability to changes in consumer preferences and political and economic conditions; our ability to attract, develop and retain employees; vulnerability to conditions in the greater Los Angeles area and to natural disasters given the geographic concentration and real estate intensive nature of our business; the possibility that we may continue to incur significant impairment of certain of our assets, in particular in our new markets; changes to food and supply costs, especially for chicken; social media and negative publicity, whether or not valid, and our ability to respond to and effectively manage the impact of social media; our ability to continue to expand our digital business, delivery orders and catering; and other risks set forth in our filings with the Securities and Exchange Commission from time to time, including under Item 1A, Risk Factors in our annual report on Form 10-K for the year ended December 29, 2021, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission, all of which are or will be available online at www.sec.gov.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the ways that we expect. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP financial measures which include supplemental measures of operating performance of our restaurants. Our calculations of supplemental measures and other non-GAAP financial measures indicated above may not be comparable to those reported by other companies. These measures have limitations as analytical tools, and are not intended to be considered in isolation or as substitutes for, or superior to, financial measures prepared and presented in accordance with GAAP. We use non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons and to evaluate our restaurants’ financial performance against our competitors’ performance. We believe that they provide useful information about operating results, enhance understanding of past performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. These non-GAAP financial measures may also assist investors in evaluating our business and performance relative to industry peers and provide greater transparency with respect to the Company’s financial condition and results of operation.
Investor Contact:
Fitzhugh Taylor, ICR
fitzhugh.taylor@icrinc.com
714-599-5200
Media Contact:
Hanna Gray, Edible
hannah.gray@edible-inc.com
323-202-1477
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||||||||||||
| June 29, 2022 | June 30, 2021 | June 29, 2022 | June 30, 2021 | |||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||
| Company-operated restaurant revenue | $ | 106,454 | 85.8 | $ | 106,970 | 87.7 | $ | 200,411 | 85.6 | $ | 201,131 | 87.6 | ||||||||||||||
| Franchise revenue | 10,064 | 8.1 | 8,389 | 6.9 | 19,319 | 8.3 | 16,001 | 7.0 | ||||||||||||||||||
| Franchise advertising fee revenue | 7,593 | 6.1 | 6,626 | 5.4 | 14,429 | 6.1 | 12,574 | 5.4 | ||||||||||||||||||
| Total revenue | 124,111 | 100.0 | 121,985 | 100.0 | 234,159 | 100.0 | 229,706 | 100.0 | ||||||||||||||||||
| Costs of operations: | ||||||||||||||||||||||||||
| Food and paper cost (1) | 31,691 | 29.8 | 27,882 | 26.1 | 59,423 | 29.7 | 52,273 | 26.0 | ||||||||||||||||||
| Labor and related expenses (1) | 33,015 | 31.0 | 31,526 | 29.5 | 65,687 | 32.8 | 62,258 | 31.0 | ||||||||||||||||||
| Occupancy and other operating expenses (1) | 25,832 | 24.3 | 25,336 | 23.7 | 49,677 | 24.7 | 49,180 | 24.5 | ||||||||||||||||||
| Company restaurant expenses (1) | 90,538 | 85.1 | 84,744 | 79.3 | 174,787 | 87.2 | 163,711 | 81.5 | ||||||||||||||||||
| General and administrative expenses | 9,679 | 7.8 | 10,523 | 8.6 | 19,633 | 8.4 | 20,997 | 9.1 | ||||||||||||||||||
| Franchise expenses | 9,557 | 7.7 | 8,161 | 6.7 | 18,288 | 7.8 | 15,912 | 6.9 | ||||||||||||||||||
| Depreciation and amortization | 3,618 | 2.9 | 3,917 | 3.2 | 7,215 | 3.1 | 7,855 | 3.4 | ||||||||||||||||||
| Loss on disposal of assets | 42 | 0.0 | 85 | 0.1 | 108 | 0.0 | 111 | 0.0 | ||||||||||||||||||
| Loss on assets held for sale | — | — | 1,524 | 1.2 | — | — | 1,524 | 0.7 | ||||||||||||||||||
| Impairment and closed-store reserves | 248 | 0.2 | 360 | 0.3 | 379 | 0.2 | 924 | 0.4 | ||||||||||||||||||
| Total expenses | 113,682 | 91.6 | 109,314 | 89.6 | 220,410 | 94.1 | 211,034 | 91.9 | ||||||||||||||||||
| Income from operations | 10,429 | 8.4 | 12,671 | 10.4 | 13,749 | 5.9 | 18,672 | 8.1 | ||||||||||||||||||
| Interest expense, net of interest income | 419 | 0.3 | 433 | 0.4 | 849 | 0.4 | 950 | 0.4 | ||||||||||||||||||
| Income tax receivable agreement expense (income) | (186 | ) | (0.1 | ) | 27 | 0.0 | (316 | ) | (0.1 | ) | (50 | ) | (0.0 | ) | ||||||||||||
| Income before provision for income taxes | 10,196 | 8.2 | 12,211 | 10.0 | 13,216 | 5.6 | 17,772 | 7.7 | ||||||||||||||||||
| Provision for income taxes | 3,055 | 2.5 | 3,393 | 2.8 | 3,960 | 1.6 | 4,990 | 2.2 | ||||||||||||||||||
| Net income | $ | 7,141 | 5.7 | $ | 8,818 | 7.2 | $ | 9,256 | 4.0 | $ | 12,782 | 5.5 | ||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.20 | $ | 0.25 | $ | 0.26 | $ | 0.36 | ||||||||||||||||||
| Diluted | $ | 0.20 | $ | 0.24 | $ | 0.25 | $ | 0.35 | ||||||||||||||||||
| Weighted average shares used in computing net income per share: | ||||||||||||||||||||||||||
| Basic | 36,331,099 | 35,927,781 | 36,278,423 | 35,861,493 | ||||||||||||||||||||||
| Diluted | 36,473,960 | 36,416,686 | 36,478,808 | 36,423,394 | ||||||||||||||||||||||
_________________________
(1) Percentages for line items relating to cost of operations and company restaurant expenses are calculated with company-operated restaurant revenue as the denominator. All other percentages use total revenue.
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED SELECTED BALANCE SHEETS AND SELECTED OPERATING DATA
(dollar amounts in thousands)
| As of | |||||||
| June 29, 2022 | December 29, 2021 | ||||||
| Selected Balance Sheet Data: | |||||||
| Cash and cash equivalents | $ | 34,311 | $ | 30,046 | |||
| Total assets | 619,403 | 613,786 | |||||
| Total debt | 40,000 | 40,000 | |||||
| Total liabilities | 295,560 | 303,163 | |||||
| Total stockholders’ equity | 323,843 | 310,623 | |||||
| Twenty-Six Weeks Ended | |||||||
| June 29, 2022 | June 30, 2021 | ||||||
| Selected Operating Data: | |||||||
| Company-operated restaurants at end of period | 188 | 198 | |||||
| Franchised restaurants at end of period | 293 | 282 | |||||
| Company-operated: | |||||||
| Comparable restaurant sales growth | 2.6 | % | 9.8 | % | |||
| Restaurants in the comparable base | 183 | 191 | |||||
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED RECONCILIATION OF SYSTEM-WIDE SALES TO COMPANY-OPERATED RESTAURANT REVENUE AND TOTAL REVENUE
(in thousands)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| (Dollar amounts in thousands) | June 29, 2022 | June 30, 2021 | June 29, 2022 | June 30, 2021 | ||||||||||||
| Company-operated restaurant revenue | $ | 106,454 | $ | 106,970 | $ | 200,411 | $ | 201,131 | ||||||||
| Franchise revenue | 10,064 | 8,389 | 19,319 | 16,001 | ||||||||||||
| Franchise advertising fee revenue | 7,593 | 6,626 | 14,429 | 12,574 | ||||||||||||
| Total Revenue | 124,111 | 121,985 | 234,159 | 229,706 | ||||||||||||
| Franchise revenue | (10,064 | ) | (8,389 | ) | (19,319 | ) | (16,001 | ) | ||||||||
| Franchise advertising fee revenue | (7,593 | ) | (6,626 | ) | (14,429 | ) | (12,574 | ) | ||||||||
| Sales from franchised restaurants | 169,032 | 148,130 | 321,609 | 281,095 | ||||||||||||
| System-wide sales | $ | 275,486 | $ | 255,100 | $ | 522,020 | 482,226 | |||||||||
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(in thousands)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2022 | June 30, 2021 | June 29, 2022 | June 30, 2021 | |||||||||||||
| Adjusted EBITDA: | ||||||||||||||||
| Net income, as reported | $ | 7,141 | $ | 8,818 | $ | 9,256 | $ | 12,782 | ||||||||
| Provision for income taxes | 3,055 | 3,393 | 3,960 | 4,990 | ||||||||||||
| Interest expense, net | 419 | 433 | 849 | 950 | ||||||||||||
| Depreciation and amortization | 3,618 | 3,917 | 7,215 | 7,855 | ||||||||||||
| EBITDA | $ | 14,233 | $ | 16,561 | $ | 21,280 | $ | 26,577 | ||||||||
| Stock-based compensation expense (a) | 970 | 1,041 | 1,796 | 1,894 | ||||||||||||
| Loss on disposal of assets (b) | 42 | 85 | 108 | 111 | ||||||||||||
| Loss on assets held for sale (c) | — | 1,524 | — | 1,524 | ||||||||||||
| Impairment and closed-store reserves (d) | 248 | 360 | 379 | 924 | ||||||||||||
| Income tax receivable agreement expense (income) (e) | (186 | ) | 27 | (316 | ) | (50 | ) | |||||||||
| Securities class action legal expense (f) | 16 | 307 | 453 | 671 | ||||||||||||
| Pre-opening costs (g) | 43 | 21 | 150 | 184 | ||||||||||||
| Adjusted EBITDA | $ | 15,366 | $ | 19,926 | $ | 23,850 | $ | 31,835 | ||||||||
_____________________________
(a) Includes non-cash, stock-based compensation.
(b) Loss on disposal of assets includes the loss on disposal of assets related to retirements and replacement or write-off of leasehold improvements or equipment.
(c) During the thirteen and twenty-six weeks ended June 30, 2021, we agreed in principle to sell eight restaurants within Sacramento area to an existing franchisee. The related net assets were reclassified to assets held for sale and remeasured to their fair value less costs to sell, which resulted in a loss on held for sale assets of
(d) Includes costs related to impairment of long-lived and right-of-use (“ROU’) assets and closing restaurants. During the thirteen and twenty-six weeks ended June 29, 2022, we recorded non-cash impairment charges of
During the thirteen and twenty-six weeks ended June 29, 2022, we recognized less than
During the thirteen and twenty-six weeks ended June 30, 2021, we recognized less than
(e) On July 30, 2014, we entered into the TRA. This agreement calls for us to pay to our pre-IPO stockholders
(f) Consists of costs and recoveries related to the defense of securities lawsuits.
(g) Pre-opening costs are a component of general and administrative expenses, and consist of costs directly associated with the opening of new restaurants and incurred prior to opening, including management labor costs, staff labor costs during training, food and supplies used during training, marketing costs, and other related pre-opening costs. These are generally incurred over the three to five months prior to opening. Pre-opening costs also include occupancy costs incurred between the date of possession and the opening date for a restaurant.
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED RECONCILIATION OF NET INCOME TO PRO FORMA NET INCOME
(dollar amounts in thousands, except share data)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2022 | June 30, 2021 | June 29, 2022 | June 30, 2021 | |||||||||||||
| Pro forma net income: | ||||||||||||||||
| Net income, as reported | $ | 7,141 | $ | 8,818 | $ | 9,256 | $ | 12,782 | ||||||||
| Provision for taxes, as reported | 3,055 | 3,393 | 3,960 | 4,990 | ||||||||||||
| Income tax receivable agreement expense (income) | (186 | ) | 27 | (316 | ) | (50 | ) | |||||||||
| Loss on disposal of assets | 42 | 85 | 108 | 111 | ||||||||||||
| Loss on assets held for sale | — | 1,524 | — | 1,524 | ||||||||||||
| Impairment and closed-store reserves | 248 | 360 | 379 | 924 | ||||||||||||
| Securities lawsuits related legal expenses | 16 | 307 | 453 | 671 | ||||||||||||
| Provision for income taxes | (2,734 | ) | (3,846 | ) | (3,668 | ) | (5,552 | ) | ||||||||
| Pro forma net income | $ | 7,582 | $ | 10,668 | $ | 10,172 | $ | 15,400 | ||||||||
| Pro forma weighted-average share and per share data: | ||||||||||||||||
| Pro forma net income per share | ||||||||||||||||
| Basic | $ | 0.21 | $ | 0.30 | $ | 0.28 | $ | 0.43 | ||||||||
| Diluted | $ | 0.21 | $ | 0.29 | $ | 0.28 | $ | 0.42 | ||||||||
| Weighted-average shares used in computing pro forma net income per share | ||||||||||||||||
| Basic | 36,331,099 | 35,927,781 | 36,278,423 | 35,861,493 | ||||||||||||
| Diluted | 36,473,960 | 36,416,686 | 36,478,808 | 36,423,394 | ||||||||||||
EL POLLO LOCO HOLDINGS, INC.
UNAUDITED RECONCILIATION OF INCOME FROM OPERATIONS TO RESTAURANT CONTRIBUTION
(dollar amounts in thousands)
| Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
| June 29, 2022 | June 30, 2021 | June 29, 2022 | June 30, 2021 | |||||||||||||
| Restaurant contribution: | ||||||||||||||||
| Income from operations | $ | 10,429 | $ | 12,671 | $ | 13,749 | $ | 18,672 | ||||||||
| Add (less): | ||||||||||||||||
| General and administrative expenses | 9,679 | 10,523 | 19,633 | 20,997 | ||||||||||||
| Franchise expenses | 9,557 | 8,161 | 18,288 | 15,912 | ||||||||||||
| Depreciation and amortization | 3,618 | 3,917 | 7,215 | 7,855 | ||||||||||||
| Loss on disposal of assets | 42 | 85 | 108 | 111 | ||||||||||||
| Loss on assets held for sale | — | 1,524 | — | 1,524 | ||||||||||||
| Franchise revenue | (10,064 | ) | (8,389 | ) | (19,319 | ) | (16,001 | ) | ||||||||
| Franchise advertising fee revenue | (7,593 | ) | (6,626 | ) | (14,429 | ) | (12,574 | ) | ||||||||
| Impairment and closed-store reserves | 248 | 360 | 379 | 924 | ||||||||||||
| Restaurant contribution | $ | 15,916 | $ | 22,226 | $ | 25,624 | $ | 37,420 | ||||||||
| Company-operated restaurant revenue: | ||||||||||||||||
| Total revenue | $ | 124,111 | $ | 121,985 | $ | 234,159 | $ | 229,706 | ||||||||
| Less: | ||||||||||||||||
| Franchise revenue | (10,064 | ) | (8,389 | ) | (19,319 | ) | (16,001 | ) | ||||||||
| Franchise advertising fee revenue | (7,593 | ) | (6,626 | ) | (14,429 | ) | (12,574 | ) | ||||||||
| Company-operated restaurant revenue | $ | 106,454 | $ | 106,970 | $ | 200,411 | $ | 201,131 | ||||||||
| Restaurant contribution margin (%) | 15.0 | % | 20.8 | % | 12.8 | % | 18.6 | % | ||||||||
FAQ
What were the Q2 2022 earnings results for LOCO?
What factors influenced the decline in income for LOCO in Q2 2022?
How did franchise revenue perform for LOCO in Q2 2022?
What is the 2022 outlook for El Pollo Loco?
