El Pollo Loco 2015 Annual Report Download - page 56

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Table of Contents
Results of Operations
Fiscal Year 2014 Compared to Fiscal Year 2013
Our operating results for the fiscal years ended December 31, 2014, and December 25, 2013, in absolute terms and expressed as a percentage of
total revenue, with the exception of cost of operations and company restaurant expenses, which are expressed as a percentage of company-
operated revenue, are compared below:
Company-Operated Restaurant Revenue
In fiscal 2014, company-operated restaurant revenue increased $28.2 million, or 9.6%, due primarily to an increase in company-operated
comparable restaurant sales of $16.8 million, or 5.8%. The growth in company-operated comparable restaurant sales was due primarily to an
increase in average check size of 3.3% and an increase in traffic of 2.5% compared to the prior year. Company-operated restaurant revenue was
also favorably impacted by $8.8 million of additional sales from new restaurants and $4.6 million for the additional week of operations in a 53-
week fiscal year, and was partially offset by $2.0 million of lost sales from closed restaurants which operated for the full year in fiscal 2013.
52
Fiscal Year
2014
(53-Weeks)
2013
(52-Weeks)
Increase / (Decrease)
($ ,000)
(%)
($ ,000)
(%)
($ ,000)
(%)
Statement of Operations Data:
Revenue
Company
-
operated restaurant revenue
$
322,516
93.5
$
294,327
93.5
$
28,189
9.6
Franchise revenue
22,345
6.5
20,400
6.5
1,945
9.5
Total revenue
344,861
100.0
314,727
100.0
30,134
9.6
Cost of operations
Food and paper costs
102,611
31.8
93,589
31.8
9,022
9.6
Labor and related expenses
80,646
25.0
75,669
25.7
4,977
6.6
Occupancy and other operating expenses
68,538
21.3
63,150
21.5
5,388
8.5
Company restaurant expenses
251,795
78.1
232,408
79.0
19,387
8.3
General and administrative expenses
29,519
8.6
25,506
8.1
4,013
15.7
Franchise expenses
3,704
1.1
3,841
1.2
(137
)
(3.6
)
Depreciation and amortization
11,538
3.3
10,213
3.2
1,325
13.0
Loss on disposal of assets
646
0.2
868
0.3
(222
)
(25.6
)
Asset impairment and close
-
store reserves
1,033
0.3
(101
)
(0.0
)
1,134
(1,122.8
)
Total expenses
298,235
86.5
272,735
86.7
25,500
9.3
Gain on disposition of restaurants
2,658
0.8
400
0.1
2,258
564.5
Income from operations
49,284
14.3
42,392
13.5
6,892
16.3
Interest expense, net
18,062
5.2
36,334
11.5
(18,272
)
(50.3
)
Early extinguishment of debt
9,718
2.8
21,530
6.8
(11,812
)
(54.9
)
Secondary offering expense
667
0.2
—
—
667
—
Income tax receivable agreement expense
41,382
12.0
—
—
41,382
—
Income (loss) before benefit (provision) for income taxes
(20,545
)
(6.0
)
(15,472
)
(4.9
)
(5,073
)
32.8
Benefit (provision) for income taxes
63,008
18.3
(1,401
)
(0.4
)
(64,409
)
(4,597.4
)
Net income (loss)
$
42,463
12.3
$
(16,873
)
(5.4
)
$
59,336
(351.7
)