El Pollo Loco 4Q14 Earnings Call Notes

QSR-plus

“We define QSR-plus as offering the high quality food and dining experience you’d expect at a fast casual restaurant combined with the speed convenience and value you’d find at a traditional quick service restaurant essentially getting the best of both worlds.”

8-10% growth, but that only means 11 new restaurants

“Switching to development, our pipeline continues to be robust and positions us for 8% to 10% unit growth over the long term. We opened six company restaurants in the fourth quarter bringing our total company openings for the year to 11.”

No impact from healthcare

As we have mentioned previously we do not expect these to be significantly impacted by Affordable Care Act in 2015 as the health insurance program was already fully compliant with the Act prior to its implementation.

Franchise agreement says remodel once every 7 years

“In our franchise agreement it calls for remodeling every seven years and as we’ve mentioned before we had delayed some of that going into this. So, it is called out for contractually every seven years. We felt it was necessary to skip the even it’s relevant. Initially as we reported it’s about a 3% incremental sales on top of what they are already getting. But the customer satisfaction is putting the brand where it needs to be today in this QSR-Plus now with our facilities. And we started with the oldest ones first obviously”