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EPL Intermediate, Inc. Announces Results for the 13 Weeks and 26 Weeks Ended June 30, 2009.

Article Excerpt
COSTA MESA, Calif. -- EPL Intermediate, Inc. ("El Pollo Loco" or the "Company"), parent company of El Pollo Loco, Inc., today reported results for its 13-week second quarter and 26 weeks ended July 1, 2009. For purposes of simplicity, the Company has described its second quarters ended July 1, 2009 and June 25, 2008 as June 30, 2009 and June 30, 2008, respectively.

El Pollo Loco reported operating revenue for the 13-week second quarter ended June 30, 2009 of $72.7 million, which is a decrease of $3.7 million, or 4.9%, below operating revenue for the 13-week quarter ended June 30, 2008 of $76.4 million. Operating revenue includes sales at company-operated stores and franchise revenue. The decrease in company-operated restaurant revenue was primarily attributed to a 7.0% decrease in company-operated same-store sales for the second quarter of 2009 compared to the second quarter of 2008 and lost sales of $0.5 million from the closure of three company-operated restaurants in 2008. The decrease was partially offset by an increase in restaurant revenue of $1.8 million from nine restaurants opened in 2008 and by $0.6 million generated from two restaurants opened in 2009.

Franchise revenue decreased $0.7 million, or 12.1%, to $4.9 million for the 13 weeks ended June 30, 2009 from $5.6 million for the 13 weeks ended June 30, 2008. This decrease is due primarily to decreased development fees which are attributed to fewer franchised restaurant openings in the current period and also due to lower royalties and percentage rent income, which are based on sales, resulting from a 6.6% decrease in franchise-operated same-store sales for the 2009 period compared to the 2008 period.

Same-store sales for the system (includes both company and franchise locations) decreased 6.8% in the second quarter of 2009. Restaurants enter the comparable restaurant base for same-store sales the first full week after that restaurant's 15-month anniversary.

Operating income increased $7.1 million, or 237.0%, to $4.1 million in the second quarter of 2009 from an operating loss of $3.0 million for the same quarter of 2008. This increase is due primarily to an expense of $10.7 million incurred in the second quarter of 2008 to settle trademark litigation between EPL-Mexico v. EPL-USA that did not recur in the current year.

Other items impacting the comparison of operating income between the second quarter of 2009 and the second quarter of 2008 include:

* Product costs decreased $0.4 million, or 2.0%, to...