El Pollo Loco 2016 Annual Report Download - page 46

Results of Operations
Fiscal Year 2015 Compared to Fiscal Year 2014
OuroperatingresultsforthefiscalyearsendedDecember30,2015,andDecember31,2014,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restaurantrevenue,arecompared
below:

 Fiscal Year
2015
(52-Weeks)
2014
(53-Weeks) Increase / (Decrease)
($ ,000) (%) ($ ,000) (%) ($ ,000) (%)
Statement of Operations Data:                  
Revenue                  
Company-operatedrestaurantrevenue  $ 332,040   93.5  $ 322,516   93.5  $ 9,524   3.0
Franchiserevenue   23,017   6.5   22,345   6.5   672   3.0
Totalrevenue   355,057   100.0   344,861   100.0   10,196   3.0
Costofoperations                  
Foodandpapercosts   105,917   31.9   102,611   31.8   3,306   3.2
Laborandrelatedexpenses   84,231   25.4   80,646   25.0   3,585   4.4
Occupancyandotheroperatingexpenses   69,977   21.1   68,538   21.3   1,439   2.1
Companyrestaurantexpenses   260,125   78.3   251,795   78.1   8,330   3.3
Generalandadministrativeexpenses   28,997   8.2   29,519   8.6   (522)   (1.8)
Franchiseexpenses   3,456   1.0   3,704   1.1   (248)   (6.7)
Depreciationandamortization   13,092   3.7   11,538   3.3   1,554   13.5
Lossondisposalofassets   471   0.1   646   0.2   (175)   (27.1)
Assetimpairmentandclose-storereserves   92   0.0   1,033   0.3   (941)   (91.1)
Totalexpenses   306,233   86.2   298,235   86.5   7,998   2.7
Gainondispositionofrestaurants   —   0.0   2,658   0.8   (2,658)   (100.0)
Incomefromoperations   48,824   13.8   49,284   14.3   (460)   (0.9)
Interestexpense,net   3,707   1.0   18,062   5.2   (14,355)   (79.5)
Earlyextinguishmentofdebt   —   —   9,718   2.8   (9,718)   (100.0)
Expensesrelatedtosellingshareholders   50   —   667   0.2   (617)   (92.5)
Incometaxreceivableagreementexpense   156   —   41,382   12.0   (41,226)   (99.6)
Income(loss)before(provision)benefit
forincometaxes   44,911   12.6   (20,545)   (6.0)   65,456   (318.6)
(Provision)benefitforincometaxes   (20,857)   (5.9)   63,008   18.3   83,865   133.1
Netincome(loss)  $ 24,054   6.8  $ 42,463   12.3  $ (18,409)   (43.4)

Company-Operated Restaurant Revenue
Infiscal2015,company-operatedrestaurantrevenueincreased$9.5million,or3.0%,duetoanincreaseincompany-operatedcomparablerestaurantsalesof$3.1
million,or1.0%.Thegrowthincompany-operatedcomparablerestaurantsaleswasdueprimarilytoanincreaseinaveragechecksizeof2.9%offsetbyadecrease
intrafficof1.9%comparedtotheprioryear.Company-operatedrestaurantrevenuewasalsofavorablyimpactedby$16.3millionofadditionalsalesfromnew
restaurants,andwaspartiallyoffsetby$5.5millionoflostsalesfromclosedrestaurantsand$4.6millionfortheadditionalweekofoperations,infiscal2014,ina
53-weekfiscalyear.
Franchise Revenue
Infiscal2015,franchiserevenueincreased$0.7million,or3.0%.Thisincreasewasdueprimarilytoincreasesinfranchisedcomparablerestaurantsalesof2.2%,
$0.5millioninhigherpointofsalesrevenue,resultingprimarilyfromadditionalfranchiseunits,and$0.3millioninhigherfranchisedevelopmentandagreement
renewalfees.Thisincreasewaspartiallyoffsetbya$1.3milliondecreaseinsubleaseincome,resultingfromtheexpirationorbuyout,intheprioryear,ofsublease
agreements.
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