El Pollo Loco 2016 Annual Report Download - page 40

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Highlights and Trends
Comparable Restaurant Sales
Infiscal2015,2014,and2013,comparablerestaurantsalessystem-wideincreased2.2%,7.0%,and7.0%,respectively.Comparablerestaurantsalesgrowthreflects
thechangeinyear-over-yearsalesforthecomparablerestaurantbase.Arestaurantentersourcomparablerestaurantbasethefirstfullweekafterits15-month
anniversary.System-widecomparablerestaurantsalesincluderestaurantsalesatallcomparablecompany-operatedrestaurantsandatallcomparablefranchised
restaurants,asreportedbyfranchisees.Comparablerestaurantsalesatcompany-operatedrestaurantsincreased1.0%infiscal2015,5.8%infiscal2014,and5.3%
infiscal2013.Infiscal2015,theincreaseincompany-operatedcomparablerestaurantsaleswasprimarilytheresultofanincreaseinaveragechecksizeof2.9%
offsetbyadecreaseintrafficof1.9%.Infiscal2014,theincreaseincompany-operatedcomparablerestaurantsaleswasdrivenbyanincreaseinaveragechecksize
of3.3%andbytrafficgrowthof2.5%.Infiscal2013,theincreaseincompany-operatedcomparablerestaurantsaleswasdrivenbyanincreaseinaveragecheck
sizeof2.7%andbytrafficgrowthof2.6%.Infiscal2015,2014,and2013,comparablerestaurantsalesatfranchisedrestaurantsincreased3.1%,8.0%,and8.8%,
respectively.
Restaurant Development
Since2011,wehavefocusedonrepositioningourbrand,improvingoperationalefficiencyandbrandawareness,strengtheningourmanagementteam,and
refinancingourindebtednessinpreparationforfuturegrowth.Newrestaurantdevelopmentisexpectedtobeakeydriverofourgrowthstrategy.Infiscal2015,we
opened14company-operatedrestaurants,andourfranchiseesopenedfivenewrestaurants.Fromtimetotime,weandourfranchiseescloserestaurants.Infiscal
2015,ourfranchiseesclosedonerestaurant.Ourrestaurantcountsattheendofeachofthelastthreeyearsareasfollows:
Fiscal Year
2015 2014 2013
Company-operated restaurant activity:      
Beginningofperiod   172   168   169
Openings   14   11   2
Restaurantsaletofranchisee   —   (6)   —
Closures   —   (1)   (3)
Restaurantsatendofperiod   186   172   168
Franchised restaurant activity:      
Beginningofperiod   243   233   229
Openings   5   5   5
Restaurantsaletofranchisee   —   6   —
Closures   (1)   (1)   (1)
Restaurantsatendofperiod   247   243   233
Total restaurant activity:      
Beginningofperiod   415   401   398
Openings   19   16   7
Closures   (1)   (2)   (4)
Restaurantsatendofperiod   433   415   401
Restaurant Remodeling
Weandourfranchiseescommencedourremodelingprogramin2011and,asofDecember30,2015,togetherwehadremodeled107company-operatedand168
franchisedrestaurants,or275system-wide,over70%ofourrestaurantsystemduetoberemodeled.Remodelingisauseofcashandhasimplicationsforournet
propertyanddepreciationlineitemsonourconsolidatedbalancesheetsandstatementsofoperations,amongothers.Thecostofourrestaurantremodelsvaries
dependingonthescopeofworkrequired,butonaveragetheinvestmentis$270,000perrestaurant.Webelievethatourremodelingprogramwillresultinhigher
restaurantrevenueandastrengthenedbrand.
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