El Pollo Loco 2016 Annual Report Download - page 49

Fiscal Year 2014 Compared to Fiscal Ye ar 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restaurantrevenue,arecompared
below:

 Fiscal Year
2014 2013
(53-Weeks) (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   565
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   —
Lossbeforeprovisionforincometaxes   (20,545)   (6.0)   (15,472)   (4.9)   (5,073)   (32.8)
(Provision)benefit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)

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.
Franchise Revenue
Infiscal2014franchiserevenueincreased$1.9million,or9.5%.Theincreasewasdueprimarilytoincreasesinfranchisedcomparablerestaurantsalesof8.0%,
$0.3millionrelatedtothebuyoutofasubleaseagreementinwhichthefranchiseeenteredintoadirectleasewiththelandlordoftheproperty,$0.1millionforthe
additionalweekoffranchiserevenuerecognizedina53-weekfiscalyear,and$0.1millioninhigherfranchiseagreementrenewalfees.Thisincreasewaspartially
offsetbythenegativeimpactsoftheclosureofonefranchisedrestaurantineachoffiscal2014and2013.
Food and Paper Costs
Foodandpapercostsincreased$9.0millioninfiscal2014,duetoan$8.0millionincreaseinfoodcostsanda$1.0millionincreaseinpapercosts.Thisincrease
wasdueprimarilytohighersalevolumeandtohighercommoditycosts.Foodandpapercostsasapercentageofcompany-operatedrestaurantsrevenuewere
31.8%inbothfiscal2014and2013.Thispercentagewasflatduetohighercommodity
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