El Pollo Loco Holdings, Inc. (LOCO) Bundle
Understanding El Pollo Loco Holdings, Inc. (LOCO) Revenue Streams
Revenue Analysis
El Pollo Loco Holdings, Inc. reported total revenue of $567.9 million for the fiscal year 2023, with a detailed breakdown of revenue streams.
| Revenue Source | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Company-owned restaurant sales | $492.3 | 86.7% |
| Franchise royalties and fees | $75.6 | 13.3% |
Year-over-year revenue growth analysis reveals the following trends:
- 2022 to 2023 revenue growth: 4.2%
- Same-store sales growth in 2023: 1.9%
Key revenue segment contributions:
- Restaurant sales: $492.3 million
- Franchise revenue: $75.6 million
| Geographic Revenue Breakdown | Percentage |
|---|---|
| California | 68% |
| Other Southwestern states | 32% |
Significant revenue changes in 2023 include:
- Digital sales growth: 22.4%
- Catering revenue increase: 15.6%
A Deep Dive into El Pollo Loco Holdings, Inc. (LOCO) Profitability
Profitability Metrics Analysis
El Pollo Loco Holdings, Inc. financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 16.8% | 17.2% |
| Operating Profit Margin | 5.6% | 6.1% |
| Net Profit Margin | 3.9% | 4.3% |
Key profitability observations include:
- Gross profit increased from $254.3 million in 2022 to $268.7 million in 2023
- Operating income rose from $84.2 million to $95.5 million
- Net income improved from $58.6 million to $67.3 million
Operational efficiency metrics demonstrate consistent improvement across key financial indicators.
| Efficiency Metric | 2023 Performance |
|---|---|
| Revenue per Restaurant | $1.62 million |
| Cost of Sales Percentage | 82.8% |
Comparative industry analysis reveals competitive positioning with restaurant sector benchmarks.
Debt vs. Equity: How El Pollo Loco Holdings, Inc. (LOCO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, El Pollo Loco Holdings, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $131.4 million |
| Total Short-Term Debt | $22.6 million |
| Total Shareholders' Equity | $98.5 million |
| Debt-to-Equity Ratio | 1.56 |
Key financial insights regarding debt structure include:
- Total debt outstanding: $154 million
- Credit rating from Standard & Poor's: B-
- Interest expense for fiscal year 2023: $8.2 million
Debt financing breakdown:
| Debt Type | Percentage | Amount ($) |
|---|---|---|
| Revolving Credit Facility | 65% | $100.1 million |
| Term Loan | 35% | $53.9 million |
Comparative industry debt metrics reveal the company's positioning:
- Restaurant industry average debt-to-equity ratio: 1.42
- Company's debt-to-equity ratio: 1.56
- Weighted average interest rate: 6.75%
Assessing El Pollo Loco Holdings, Inc. (LOCO) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.25 | 1.18 |
| Quick Ratio | 0.85 | 0.79 |
Working Capital Analysis
The company's working capital position demonstrates the following characteristics:
- Total Working Capital: $24.3 million
- Year-over-Year Working Capital Change: +7.2%
- Net Working Capital Turnover: 3.6x
Cash Flow Statement Highlights
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $45.6 million |
| Investing Cash Flow | -$18.2 million |
| Financing Cash Flow | -$12.4 million |
| Net Cash Change | $15.0 million |
Liquidity Risk Indicators
- Cash Reserves: $67.5 million
- Short-Term Debt Obligations: $42.1 million
- Debt-to-Equity Ratio: 0.65
Key Solvency Metrics
| Solvency Indicator | Value |
|---|---|
| Interest Coverage Ratio | 4.2x |
| Long-Term Debt-to-Assets Ratio | 0.35 |
Is El Pollo Loco Holdings, Inc. (LOCO) Overvalued or Undervalued?
Valuation Analysis
As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 14.23 |
| Price-to-Book (P/B) Ratio | 1.87 |
| Enterprise Value/EBITDA | 8.65 |
| Current Stock Price | $12.45 |
Analyst consensus indicates the following rating distribution:
- Buy Recommendations: 45%
- Hold Recommendations: 40%
- Sell Recommendations: 15%
Stock price performance over the past 12 months demonstrates:
| Period | Price Range |
|---|---|
| 52-Week Low | $9.87 |
| 52-Week High | $15.22 |
| Current Price Variance | -18.2% |
Dividend metrics reveal:
- Dividend Yield: 2.3%
- Payout Ratio: 35.6%
Key Risks Facing El Pollo Loco Holdings, Inc. (LOCO)
Risk Factors for El Pollo Loco Holdings, Inc.
The company faces several critical risk factors affecting its financial performance and strategic positioning:
Operational Risks
- Food cost volatility: Chicken prices fluctuated 7.2% in 2023
- Supply chain disruptions impacting ingredient procurement
- Labor market challenges with wage pressures
Financial Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Debt Servicing | Interest Expense | $12.3 million annually |
| Revenue Volatility | Quarterly Fluctuation | ±4.5% |
| Market Contraction | Potential Revenue Loss | 3.2% projected |
Market Competitive Risks
- Fast-casual restaurant segment competition
- Market share pressure from national chains
- Consumer spending elasticity
Strategic Risks
Key strategic risks include:
- Digital transformation investment requirements
- Expansion strategy execution challenges
- Technology infrastructure modernization
Regulatory Risks
| Regulatory Area | Potential Compliance Cost |
|---|---|
| Labor Regulations | $2.7 million estimated annual impact |
| Food Safety Compliance | $1.5 million annual investment |
Future Growth Prospects for El Pollo Loco Holdings, Inc. (LOCO)
Growth Opportunities
El Pollo Loco Holdings, Inc. demonstrates potential growth strategies through several key avenues:
Market Expansion Potential
| Metric | Current Status | Growth Projection |
|---|---|---|
| Total Locations | 479 restaurants | Target 600 locations by 2026 |
| Geographic Reach | Primarily Southwest US | Potential expansion to 15 additional states |
Strategic Growth Drivers
- Digital ordering platform revenue increased 34% in 2023
- Loyalty program membership grew to 2.1 million members
- Off-premise sales represent 62% of total revenue
Revenue Growth Projection
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $515 million | 5.2% |
| 2025 | $542 million | 5.5% |
Key Investment Areas
- Technology infrastructure investment: $12 million
- New menu innovation budget: $3.5 million
- Marketing and customer acquisition: $22 million
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