Investing.com -- Shares in El Pollo Loco Holdings Inc (NASDAQ:LOCO) plunged more than 12% in after-hours trading, after the Mexican-style restaurant chain's outlook for the rest of the year dropped below analysts' forecasts.
El Pollo Loco, a California-based casual dining restaurant chain, offered a forward guidance of 0.67 to 0.71 per share for 2015 diluted net income, below Wall Street estimates of 0.70 per share when it released its first quarter earnings report on Thursday. The company, however, posted total revenue of $90.4 million for the quarter, an 11.1% increase on a year-over-year basis, as well as first quarter Pro Forma net income of $7.1 million – a gain of more than 40% from the previous year.
"We are very pleased with our first quarter results, which once again demonstrate strong operating momentum through solid sales and earnings growth. Our Crazy You Can Taste authentic Mexican inspired cuisine continues to resonate with guests, as evidenced by our system-wide comparable restaurant sales growth of 5.1%, which extended our track record to 15 consecutive quarters of positive comparable restaurant sales growth," CEO Steve Sather said in a statement.
Same store sales for the company increased by 5.1% for the period, boosted by sizable gains among its franchise-run restaurants. El Pollo Loco, which operates roughly 400 restaurants in the Southern portions of the U.S., has plans to add seven locations in Utah by 2018.
"We remain excited about the opportunity ahead to expand in both new and existing markets, and look forward to showcasing our freshly prepared authentic cuisine, particularly our signature fire-grilled chicken, to customers across the country," Sather said.
Shares in El Pollo Loco fell 3.78 or 13.01% to 25.28.