The Costa Mesa-based parent company of El Pollo Loco Inc. reported lower sales and a loss for 2009, which the Mexican fast food chain’s chief executive called “among the most challenging years in our 30-year history.”
El Pollo Loco’s holding company, EPL Intermediate Inc., reported an operating loss of $4 million for the year, down from on operating loss of $25 million a year earlier on lower food and wage costs.
The company is privately owned but reports results for debt holders.
Including interest expenses and other charges, El Pollo Loco posted a net loss of $52 million, widened from $39 million a year earlier.
Chief Executive Stephen Carley blamed the recession and its impact on the chain’s key Hispanic customers for the loss and lower sales.
The company, which runs 172 of its own restaurants and has 243 franchises, saw 2009 revenue from its restaurants and franchisee fees of $278 million, down 7% from a year earlier.
Sales at all 415 El Pollo Locos fell 8% last year, according to the company.
El Pollo Loco last year also faced a “chicken war” with KFC, part of Louisville, Ky.-based Yum Brands Inc., which came out with a line of grilled chicken that took aim at El Pollo Loco’s signature offering.
“While the economy remains challenging, the learning we gleaned in 2009 has made us stronger and more resilient,” Carley said.
