The parent of Costa Mesa-based El Pollo Loco saw its ongoing slump moderate some in the third quarter but said the slow recovery and high unemployment continue to drag on the Mexican food chain.
EPL Intermediate Inc., El Pollo Loco’s parent, said revenue for the quarter was down 0.4% from a year earlier to $68.2 million.
The company’s revenue is made up of sales at company-owned restaurants and fees from franchisees. The chain has 170 company-owned restaurants and 242 franchises.
The revenue decline at El Pollo Loco marks improvement from the second quarter, when sales fell 2% from a year earlier. In the first quarter, they fell 4%.
Third-quarter operating income rose 3.3% to $4.9 million, driven by lower food costs and fewer write-downs at restaurants.
El Pollo Loco has been hard hit by the recession and slow recovery, which has been particularly hard on Hispanics who make up a key part of the chain’s diners.
The company “continues to be adversely affected by the challenging economy and high level of unemployment in our core markets, and in particular among Hispanics,” said Steve Sather, acting president and chief executive.
El Pollo Loco is privately held and reports results for debt holders. New York-based private equity firm Trimaran Capital Partners owns the majority of the company.
