Fast food chain El Pollo Loco (NASDAQ:LOCO) reported Q4 FY2023 results beating Wall Street analysts' expectations , with revenue down 3.2% year on year to $112.2 million. It made a non-GAAP profit of $0.16 per share, down from its profit of $0.16 per share in the same quarter last year.

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El Pollo Loco (LOCO) Q4 FY2023 Highlights:

• Revenue: $112.2 million vs analyst estimates of $109.1 million (2.9% beat)

• Adjusted EBITDA: $13.6 million vs analyst estimates of $13.4 million (1.5% beat)

• EPS (non-GAAP): $0.16 vs analyst expectations of $0.16 (1.5% miss)

• Gross Margin (GAAP): 20.2%, up from 19.1% in the same quarter last year

• Same-Store Sales were up 0.9% year on year (miss vs. expectations of up 1.1% year on year)

• Store Locations: 495 at quarter end, increasing by 5 over the last 12 months

• Market Capitalization: $296.6 million

Maria Hollandsworth, President and Chief Operating Officer of El Pollo Loco Holdings, Inc., stated, “We are pleased with the progress our team has made during the fourth quarter as they execute against our initiatives geared toward top-line growth and profitability improvements. As we look into 2024, we aim to lean into what makes El Pollo Loco unique – our one-of-a-kind, better-for-you marinated flame grilled chicken that delivers a truly special flavor that our customers crave. Through menu innovations, marketing initiatives and renewed focus on four-wall operational excellence, we will build upon the foundation we have laid down last year to unlock the immense potential we have ahead of us.”

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.

Traditional Fast Food

Traditional fast-food restaurants are renowned for their speed and convenience, boasting menus filled with familiar and budget-friendly items. Their reputations for on-the-go consumption make them favored destinations for individuals and families needing a quick meal. This class of restaurants, however, is fighting the perception that their meals are unhealthy and made with inferior ingredients, a battle that's especially relevant today given the consumers increasing focus on health and wellness.

Sales Growth

El Pollo Loco is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefitting from better brand awareness and economies of scale.