The parent of Costa Mesa-based Mexican fast food chain El Pollo Loco Inc. continues to see slumping sales.
For the three months through March, EPL Intermediate Inc. said sales fell nearly 4% from a year earlier to $68 million.
A 7% drop in same-store sales, or sales at restaurants open for at least 15 months, drove the lower revenue, according to the company.
“Our sales continued to be impacted by disproportionately high unemployment in our core markets and increased frugality among dine-out consumers,” Chief Executive Stephen Carley said.
The lower sales came despite new offerings, including a line of steak tacos, quesadillas and other items.
El Pollo Loco’s operating income rose by 7.6% to $4.4 million on lower food, payroll and other expenses.
After factoring in interest payments on debt and taxes, El Pollo Loco lost $5.6 million for the period, versus a loss of $1.3 million a year earlier.
The company is looking to more new products and value menu items for growth, according to Carley.
El Pollo Loco runs 171 of its own restaurants and has 241 franchisees in California, Arizona, Colorado, Connecticut, Georgia, Illinois, Missouri, Nevada, New Jersey, Oregon, Texas, Utah and Virginia.
