El Pollo Loco Holdings, Inc. reported its third quarter 2024 financial results on October 31, 2024. Company-operated restaurant revenue decreased to $101.2 million from $102.7 million in Q3 2023, primarily due to the sale of 19 company-operated restaurants to franchisees. This was partially offset by a 2.8% increase in company-operated comparable restaurant sales.
System-wide comparable sales increased by 2.7%, driven by an 11.3% increase in average check size due to menu price adjustments, despite a 7.6% decrease in transactions. Franchise revenue increased by 10.5% to $11.3 million, supported by a 2.7% increase in franchise comparable restaurant sales and three new franchise openings.
Restaurant contribution improved to $16.9 million, or 16.7% of company-operated restaurant revenue, up from 14.4% in the prior year, largely due to higher menu prices and better operating efficiencies. Net income for the quarter was $6.2 million, or $0.21 per diluted share, compared to $9.2 million, or $0.28 per diluted share in Q3 2023. Adjusted net income was $6.3 million, or $0.21 per diluted share, compared to $6.4 million, or $0.19 per diluted share in Q3 2023.
As of September 25, 2024, the company's outstanding debt balance was $76.0 million with $7.9 million in cash and cash equivalents, after paying down $11.0 million on its revolving credit facility. The company repurchased 92,043 shares of common stock for approximately $1.1 million during the quarter. Subsequent to quarter-end, an additional $5.0 million was paid down on the revolver, reducing outstanding borrowings to $71.0 million as of October 31, 2024.
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