Shares in El Pollo Loco plunge 14% after 2Q earnings miss

Investing.com - Investing.com -- Shares in El Pollo Loco Holdings Inc (NASDAQ:LOCO) plunged more than 14% in after-hours trading after the California-based Hispanic restaurant chain posted worse than expected quarterly results on Thursday afternoon.
During the company's second quarter, which ended in early-July, El Pollo Loco saw its earnings per share shrink even as its net profits rose modestly on a year-over-year basis. The restaurant chain reported net profits of $7.2 million over the three-month, up from $6.6 million during the same period last year. It came though as its earnings per share fell from 0.22 in the second quarter of 2014 to 0.18 last quarter.
In terms of revenue, El Pollo Loco earned $89.5 million on the quarter up from $86.9 million a year earlier. Analysts had expected revenues of $93 million on adjusted earnings per share of 0.18. Disappointing same-restaurant sales dented earnings for the quarter, as El Pollo Loco reported a 1.3% spike – far below consensus estimates of a 3.2% increase.
Nevertheless, El Pollo Loco CEO Steve Sather appeared fairly pleased with the quarterly results.
"Our second quarter results included pro forma net income growth of over 20%, as well as our 16th consecutive quarter of system-wide comparable restaurant sales growth," Sather said in a statement. "We remain focused on delivering the core elements of our QSR+ brand promise and are confident in the remainder of the year with the addition of shrimp and the rebalancing of our menu with more value focused products."
For 2015 as a whole, El Pollo Loco said it expects to grow same-restaurant sales by a margin of approximately 3%. In addition, it plans on opening 16 new company-owned restaurants and eight new franchised restaurants by year's end.
"We continue to be excited about the opportunity to expand in both new and existing markets, and our new restaurant pipeline continues to strengthen," Sather added. "We look forward to bringing our delicious Fire-Grilled Chicken and authentic Mexican inspired entrees to consumers across the country craving healthier and flavorful meals."
Shares in El Pollo Loco plummeted 2.59 or 14.11% to 18.36.