El Pollo Loco Holdings, Inc. reported a total revenue of $473.0 million for the fiscal year ending December 25, 2024, reflecting a 0.9% increase from $468.7 million in the previous year. The company's net income rose slightly to $25.7 million, or $0.86 per diluted share, compared to $25.6 million, or $0.74 per diluted share, in fiscal 2023. The increase in revenue was primarily driven by a 3.2% growth in comparable restaurant sales, which included a 2.8% increase in company-operated restaurants and a 3.5% increase in franchised locations. This growth was attributed to a 7.9% rise in average check size, offset by a 4.7% decrease in transactions.
In terms of operational changes, El Pollo Loco opened four new restaurants during the fiscal year, including two company-operated and two franchised locations. The company also completed eight remodels of company-operated restaurants and 44 remodels by franchisees. As of December 25, 2024, the company operated 173 company-operated restaurants and 325 franchised restaurants across several states, with a significant concentration in California, which accounted for approximately 72% of total revenue.
The company experienced a decrease in food and paper costs, which fell by 7.0% to $100.7 million, primarily due to a reduction in transactions and the sale of 19 company-operated restaurants to franchisees. Labor and related expenses remained stable at $127.2 million, despite increased wage rates resulting from California's new minimum wage law, which took effect in April 2024. General and administrative expenses increased by 10.1% to $46.3 million, driven by higher management bonus expenses and other operational costs.
Looking ahead, El Pollo Loco plans to continue its expansion strategy, with expectations to open one to two new company-operated restaurants and eight to nine new franchised locations in fiscal 2025. The company aims to enhance customer frequency and improve per-person spending to drive comparable restaurant sales growth. However, it also faces challenges from ongoing inflationary pressures, particularly in labor and food costs, as well as potential impacts from proposed tariffs on imported goods. The company remains focused on optimizing its operations and maintaining strong unit economics to support its growth objectives.
About El Pollo Loco Holdings, Inc.
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