Latest news with #LOCO
Yahoo
16-05-2025
- Business
- Yahoo
LOCO Q1 Earnings Call: Menu Innovation and Brand Relaunch Aim to Counter Flat Sales
Fast food chain El Pollo Loco (NASDAQ:LOCO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 2.6% year on year to $119.2 million. Its non-GAAP profit of $0.19 per share was in line with analysts' consensus estimates. Is now the time to buy LOCO? Find out in our full research report (it's free). Revenue: $119.2 million vs analyst estimates of $118.5 million (2.6% year-on-year growth, 0.6% beat) Adjusted EPS: $0.19 vs analyst estimates of $0.19 (in line) Adjusted EBITDA: $13.93 million vs analyst estimates of $13.71 million (11.7% margin, 1.6% beat) Operating Margin: 7.5%, in line with the same quarter last year Free Cash Flow Margin: 1.1%, down from 6% in the same quarter last year Locations: 499 at quarter end, up from 495 in the same quarter last year Same-Store Sales were flat year on year (5.1% in the same quarter last year) Market Capitalization: $284.9 million El Pollo Loco's first quarter was shaped by a challenging consumer environment, with management citing continued pressure on consumers across all demographics, including the Hispanic segment. CEO Liz Williams acknowledged that the brand turnaround remains a work in progress, highlighting recent menu innovation—like the Mango Habanero chicken—and operational investments such as new kitchen equipment and customer feedback systems. Williams emphasized that while initial results were modest, these efforts are laying the groundwork for improved performance in the coming quarters. Looking ahead, management is focused on a brand relaunch and the introduction of new menu items, including fresco wraps, salads, and quesadillas, as key strategies to drive guest traffic and improve value perception. Williams noted, 'Our brand relaunch couldn't come at a better time,' while CFO Ira Fils projected moderate labor and commodity cost inflation for the rest of the year, supported by ongoing productivity initiatives and supply chain optimizations. The company is targeting a sequential acceleration in same-store sales later in the year, driven by these initiatives. El Pollo Loco's leadership identified menu innovation, operational improvements, and development momentum as central to the first quarter's performance and near-term strategy. Management cited both internal and external headwinds that contributed to flat same-store sales and pressured margins, but expressed conviction in the underlying brand transformation and upcoming product launches. Menu innovation impact: The launch of Mango Habanero chicken attracted new guests and demonstrated consumer appetite for new flavors. Management believes ongoing menu updates, like the upcoming fresco wraps and quesadillas, will further drive trial and value perception. Brand relaunch strategy: The company is undertaking a comprehensive brand relaunch this quarter, including a new aesthetic and marketing campaign aimed at modernizing the brand and reinforcing its focus on quality and affordability. Operational efficiency initiatives: Investments in kitchen equipment and rollout of holding cabinets have improved productivity in company-owned restaurants. New technology, such as kiosks, is being used to streamline ordering and could eventually enhance guest engagement. Customer feedback integration: The implementation of a new customer feedback system has highlighted opportunities in service consistency, particularly order accuracy and hospitality. Management is addressing these issues through back-to-basics training and new standards programs. Development pipeline growth: The company opened two new restaurants in Q1 and expects at least 10 openings in 2025, with the majority outside California. Early signs suggest the pipeline is strengthening for accelerated growth in 2026, with the next opening marking the chain's 500th location. Management's outlook for the remainder of the year centers on driving traffic with menu innovation, operational improvements, and a brand relaunch, while navigating ongoing consumer and cost pressures. Menu innovation and value focus: Upcoming launches of fresco wraps, salads, and quesadillas are expected to address consumer demand for affordable, portable options, targeting both core and younger audiences. Operational productivity gains: Continued rollout of kitchen equipment, labor deployment improvements, and supply chain optimization (Project FIRE) are projected to help offset wage and commodity inflation, supporting margin stability. Remodels and new builds: Modernization of existing restaurants and the introduction of a lower-cost prototype ('Iconic') are intended to improve unit economics and accelerate development, particularly in emerging markets outside California. Management noted these initiatives are expected to boost both sales performance and cash returns. Jeremy Hamblin (Craig-Hallum Capital Group): Asked about expectations for Q2 same-store sales and the timeline for impact from new menu items; management indicated continued headwinds in Q2 but expects sequential improvement later in the year as new products launch. Jake Bartlett (Truist Securities): Inquired about regional and demographic performance, specifically pressures on the Hispanic customer; CEO Liz Williams confirmed broad consumer pullback and added that the Hispanic segment is experiencing additional strain. Jake Bartlett (Truist Securities): Requested clarity on menu pricing trends and cost of goods; CFO Ira Fils stated menu price increases will moderate to around 3% for the year, with further efficiencies expected from supply chain projects. Andy Barish (Jefferies): Probed into operational execution and the impact of weather and product cycles on March sales; management cited unusually rainy weather in Southern California and acknowledged that repeat visits for Mango Habanero could have been stronger. Andy Barish (Jefferies): Sought an update on kiosk rollout and its effect on productivity; management said kiosks are in most company restaurants and are being optimized for better guest engagement and merchandising. In future quarters, the StockStory team will be watching (1) the performance of new menu items like fresco wraps and quesadillas and their impact on guest traffic, (2) the effectiveness of the brand relaunch in shifting consumer perception and driving sales, and (3) the pace of new restaurant openings, particularly outside California. Additionally, operational execution—especially improvements in service consistency and margin recovery—will be key factors to monitor. El Pollo Loco currently trades at a forward EV-to-EBITDA ratio of 4.4×. Should you load up, cash out, or stay put? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Entertainment
- Yahoo
Altoona Curve mascot nominated for 2025 hall of fame class
ALTOONA, Pa. (WTAJ) — The Altoona Curve's favorite yellow mascot, LOCO, was nominated for the Mascot Hall of Fame's 2025 class. The Mascot Hall of Fame announced 28 candidates that have been recognized for over 10 years for excellence, energy and commitment to their communities. LOCO joins several minor and major league mascots on the ballot including Pirate Parrot. Voting for the 2025 class is open at the Mascot Hall of Fame website and runs through May 24. The inductees will be announced in June. STUDIO 814: Vote for the Altoona Curve's Loco to get into the Mascot Hall of Fame! LOCO, the fellow in yellow, began entertaining fans in 2015 when the Curve's original mascot Steamer was saying farewell. However, the Curve says LOCO's origin story goes back to when the Horseshoe Curve was built. 'Way back in the early 1840s when the construction of the Horseshoe Curve had just begun, engineer J. Edgar Thompson enlisted the help of Golden Locotami. These creatures were native to the Allegheny Mountains, their golden-yellow fur helped them camouflage into the mountains during the fall when they were known to hibernate. They were agile, fast, and loved to eat as seen by their portly bellies,' read a statement by the Altoona Curve on LOCO's origin story. The mascot was previously chosen as a finalist in the 2023 Mascot Hall of Fame class. The Mascot Hall of Fame was founded in 2005 and recognizes all North American sports mascots. On game night, LOCO is joined by other mascot friends such as Al Tuna, Trax and Diesel Dog. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
06-05-2025
- Business
- Yahoo
3 Stocks Under $10 Walking a Fine Line
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts. But that doesn't mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals. The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead. Share Price: $8.89 With a name that translates into 'The Crazy Chicken', El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico. Why Should You Dump LOCO? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Modest revenue base of $476 million gives it less fixed cost leverage and fewer distribution channels than larger companies Estimated sales growth of 3.5% for the next 12 months is soft and implies weaker demand El Pollo Loco is trading at $8.89 per share, or 4.1x forward EV-to-EBITDA. To fully understand why you should be careful with LOCO, check out our full research report (it's free). Share Price: $2.77 Known for its bottomless steak fries, Red Robin (NASDAQ:RRGB) is a chain of casual restaurants specializing in burgers and general American fare. Why Do We Avoid RRGB? Disappointing same-store sales over the past two years show customers aren't responding well to its menu offerings and dining experience Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable High net-debt-to-EBITDA ratio of 14× increases the risk of forced asset sales or dilutive financing if operational performance weakens Red Robin's stock price of $2.77 implies a valuation ratio of 0.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than RRGB. Share Price: $4.20 Inspired by a family gas station, Custom Truck One Source (NYSE:CTOS) is a distributor of trucks and heavy equipment. Why Is CTOS Risky? Muted 4.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 29.2 percentage points Short cash runway increases the probability of a capital raise that dilutes existing shareholders At $4.20 per share, Custom Truck One Source trades at 57.3x forward P/E. Check out our free in-depth research report to learn more about why CTOS doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
El Pollo Loco Holdings Inc (LOCO) Q1 2025 Earnings Call Highlights: Revenue Growth Amid ...
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. El Pollo Loco Holdings Inc (NASDAQ:LOCO) reported a 2.6% increase in total revenue for Q1 2025 compared to the same period in 2024. The company successfully launched Mango Habanero Fire Grilled Chicken, which drove trial from new guests and showcased the potential of menu innovation. El Pollo Loco Holdings Inc (NASDAQ:LOCO) opened two new restaurants in Q1 and plans to open at least 10 more in 2025, indicating growth in their restaurant footprint. The company is focusing on improving customer experience through investments in operations and a new customer feedback system. El Pollo Loco Holdings Inc (NASDAQ:LOCO) is optimistic about its brand relaunch and menu innovations, including new products like fresco wraps and quesadillas, which are expected to drive growth in the latter half of the year. The company reported a decrease in restaurant contribution margin to 16% from 17.6% in the previous year, primarily due to labor inflation and higher operating costs. Comparable restaurant sales decreased by 1.3% for franchise-operated restaurants, indicating challenges in maintaining sales momentum. El Pollo Loco Holdings Inc (NASDAQ:LOCO) experienced a 3.8% decrease in transactions, despite an increase in average check size. The company faced headwinds from consumer pullback and macroeconomic uncertainties, impacting sales performance. Weather conditions in Southern California negatively affected sales, particularly during lunch hours, contributing to softer performance in March. Warning! GuruFocus has detected 6 Warning Signs with LOCO. Q: What are your expectations for Q2 same-store sales given the current environment? A: We expect headwinds to continue in Q2 due to consumer pullback. However, we are focusing on our brand relaunch and menu innovations like the quesadilla to drive growth. We anticipate easier comparisons in Q3 and Q4, which should help improve our performance. - Liz Williams, CEO Q: How effective was the Mango Habanero launch, and what impact do you expect from upcoming product launches? A: Mango Habanero drove trial and showed that consumers want innovation. We are excited about our upcoming launches of Fresco wraps and salads in May and quesadillas in June. These products are expected to attract different consumer segments and drive sales. - Liz Williams, CEO Q: Can you provide more details on the impact of kitchen equipment investments on labor costs? A: We've rolled out equipment like holding cabinets that improve chicken quality and reduce labor time. These investments are expected to enhance operational efficiency and help manage labor costs. - Liz Williams, CEO and Ira Phils, CFO Q: Are there regional differences in consumer behavior, particularly among Hispanic consumers? A: We see a consistent consumer pullback across regions and income bands. The Hispanic consumer is under pressure, but the trend is similar across different demographics. - Liz Williams, CEO Q: What is your guidance for menu pricing for the year? A: We expect menu pricing to be around 3% for the year, with 3% in Q2 and about 2% in Q3 and Q4. - Ira Phils, CFO Q: Can you elaborate on the development pipeline momentum? A: We are confident in opening 10 new units this year, and the pipeline for next year is strong. We expect to accelerate growth beyond the 10 units planned for this year. - Liz Williams, CEO Q: What operational challenges did you face in March, and how are you addressing them? A: March was impacted by weather and consumer uncertainty. We also saw some operational execution issues with Mango Habanero. We are focusing on improving order accuracy and customer service to address these challenges. - Liz Williams, CEO Q: What is the status of the kiosk rollout, and what benefits are you seeing? A: Kiosks are installed in most company restaurants, with some remaining installations planned for this year. We see opportunities to use kiosks as merchandising tools to drive guest engagement and check size. - Ira Phils, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Why Is El Pollo Loco (LOCO) Stock Rocketing Higher Today
Shares of fast food chain El Pollo Loco (NASDAQ:LOCO) jumped 15.3% in the morning session after Biglari Capital offered to acquire the company. Reports revealed LOCO was evaluating the proposal, indicating that a deal was likely to be done. Importantly, Biglari already held approximately 15% of LOCO's shares, making it a significant stakeholder with vested interest in the company's direction. The shares closed the day at $10.16, up 9.5% from previous close. Is now the time to buy El Pollo Loco? Access our full analysis report here, it's free. El Pollo Loco's shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for El Pollo Loco and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 11 months ago when the stock gained 35.3% on the news that the company reported strong first quarter 2024 results that beat analysts' same store sales, revenue, gross margin, and EPS expectations. Same store sales benefited from an increase in average check size due to increases in menu prices and an approximately 1.2% increase in transactions. The company planned to open two new company-owned restaurants and five to seven new franchised restaurants, likely pointing to healthy demand for its offerings. Zooming out, we think this was a fantastic quarter that should have shareholders cheering. El Pollo Loco is down 8.6% since the beginning of the year, and at $10.43 per share, it is trading 24.7% below its 52-week high of $13.86 from August 2024. Investors who bought $1,000 worth of El Pollo Loco's shares 5 years ago would now be looking at an investment worth $1,134. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
