LOCO - Earnings call transcript Q4 2017 | El Pollo Loco Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the El Pollo Loco Fourth Quarter 2017 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the lines will be open for your questions following the presentation. Please note that this conference is being recorded today, March 8, 2018.

On the call today we have Steve Sather, President and Chief Executive Officer of El Pollo Loco, and Larry Roberts, Chief Financial Officer. like the would Larry over I Roberts. now, to conference turn to And

Laurance Roberts

and now, If afternoon. access you, in good Thank operator, section. Relations By be at fourth XXXX the Investor can to quarter everyone earnings it release. not, found www.elpolloloco.com our have should

our on we formal and not are could reliance and need also uncertainties put guarantees all condition. future financial performance actual risks remarks, recent materially that Before more numerous future differ you are to to of impact our from should that undue you statements everyone begin These we that SEC These will operating today refer cause forward-looking We results our discussion therefore results a subject not discussions for risks detailed include expect. and to I statements filings remind our them. what forward-looking the statements. of to of could

to review would for file XXXX We at XX-K and convenience. document earliest that tomorrow our expect to you encourage your

with today's of believe are in substitute The a to isolation release. in reconciliations prepared can accordance GAAP Sather. call over measures the as and turn for that, performance. comparable I measures, available results evaluating to earnings should our our we be presentation which we like or in GAAP, will During additional be With considered would useful information to Steve not in discuss this non-GAAP call,

Stephen J. Sather

thank good you on and joining afternoon call and everyone Thanks, Larry, today. for the us

your to all I get of started opportunity you we for support. wanted continued thank to this take Before

lead special team my earnings with my honor the order in this call. years. As time I’ve for last wife more will this had you and know month retiring the X.X and this spend I'm and brand over last family be to to

successes Acoca and thrilled the have With that the right I'm ahead appointment results. some with and of to upon most I chapter. he instilled our experience all avenue focus brand focus level have the we I'm build the from [ph] Yum! volumes aspects there repositioned possible. been business companies has restaurant next which driving successfully foundation the restaurant the team such proven brings an at our Larry. I whom and CEO. steer I’ll involvement Together and program Brands like heightened without this record growth hot and the El continue Board’s and our initiatives for never improvement intense We StarBucks franchise insights supported on Loco successes in person as a included years of enjoyed for plus we seeing niche. and in This the which this our proud operated targeting future. achievements time level. is believe in is a company it that look and would truly many franchise drove design meaningful Design. been with our we to tremendous that extremely to that Vision many opportunity phase strong is of first shared. assembled QSR formidable of During every not margins. talented working in stronger. relations Loco have their of our I'm El remodel recognized second the forward to standard team with Bernard dedicated and now Pollo over that confident Today from as well President hand for Pollo He Their incredibly have I partners the

Laurance Roberts

pleasure wish been Thanks, and with all Jodie and you Steve. you It’s working the I best.

Monday, brief and be release, March will in today’s in work during a major did of review start Q&A, recent CEO initial I’d be Bernard then like with Given available I initiatives our call. recently as for strategic to that not as an fourth guidance quarter will on before of will discussion announced quarter you first well on results. transition provide most case XXXX. our see XX. the I’ll handling our start offering update our today Steve

open line then the questions. for will We

to we which As income results share. to forma reported per our revenue The growth $XX.X quarter the in growth fourth and of in quarter increase company-operated million $XX.X result million. a largely revenue restaurants was X.X% $X.XX of to pro net sales of roseX.X%

largely when expense labor cost securities flat and At basis was percentage commodity during partially wide million legal California. pricing contribution growth increase during XXXX. and revenue in X.X% to increases as offset sales minimum compared XX the during new and accruals, during to the increase year-over-year in from administrative margin partially preopening bonus was increased restaurants was offset cost locations. higher X.X% to restaurant expenses offset company-operated the restaurant contribution This General and related The of five total by was revenue. points a revenue driven by $X.X quarter subsequent by cost million Restaurant of percentage the quarter driven quarter. of versus XXXX comparable same lower franchise Additionally and The and $XX.X XXXX the fourth driven $X XXX million. in stock sales closures was restaurant sales opened period. increased franchise in a by company-operated restaurants wage including same costs. X.X% XX.X% by as G&A option of lower restaurant increased by company-operated higher the System quarter at fourth

XXXX. points periods associated the quarter litigation compared $XXX,XXX both with XXXX approximately expenses of in Securities cost Excluding XX increased by fourth in the to the G&A or basis

in the the entire of one included to the in restaurants Texas. XX our Overall was restaurants million the compared quarter as $X.XX net $XXX,XXX reported the to income the million year to $X.X reserves the quarter fourth for our last the year. course in of to in net of impairment $XX.X to XXXX, of diluted a period. expense $XX,XXX in $X.XX Texas earnings net capitalized loss quarter During same were a we assets per of company-operated in XXXX related forma net of for forma fourth share impairment prior This fourth Pro quarter of compared and period of company $X.X of remaining quarter million charge the Pro the value XXXX. of assets of Arizona. XXXX for fourth recorded income compared the

forma For per reconciliation income share and of please figures, the earnings GAAP pro earnings net refer release. our comparable to to

equivalent sheet, XX, million and In terms of we $XX.X XXXX. million cash and balance debt of in outstanding, in and each our December as $X.X had liquidity

our and restaurant operations, For the foreseeable facility. new future, development maintenance cash borrowings capital, credit including under expect finance our through to and from we operations

our as For provide to like for the $XX expenditures initiatives an as total key strategic to million current million. quarter to-date, I we capital on expect would XXXX. first our well in XXXX, update trends $XX to know

non-core believe same-store terms point is to XXXX, our We quarter aggressive our in continued and solid in We negative, of first core our the percentage segment down very Unfortunately, December impacting the our our transactions. has are strongest sales QSR weak in of we sales across as sales performance one to were competition that XXXX wide see the this sales of quarter in results result month system competitors business. being decline and the experiencing and of discounting markets. quarter with the into expect several not sales finish momentum price in being we marketed performance. our fourth of a same-store and markets to aggressive two by carried To-date,

aggressive these As that by we've discussed are customers over price believe Pollo less by our discounting portion El the years, highly is of and a frequently Loco we response motivated past competitors. so several customer in base visiting

undertaking order these We increase loyal number to however are new initiatives of and a in ones customers, guests. our amongst frequency reclaim attract

continuing more XXXX. be are a currently promotions if drove throughout that will with growth value and meal, we'll our menu First, This which unique resonated aggressive addition testing launched family value our in be to customers advertise will a $XX with has menu our and sales well in June. successful to be

a continue differentiation message connection Second, media with our home our that authenticity we our drives with will customers. with deeper

restaurant over technology in [ph] drive to the through our Third, X% transactions has to members from Ancyra With over Punch the programs we program loyalty and individual training data contribute loyalty programs. in customer analyze our believe to fourth, targeted increase significant better of improve to and local to and sales four members last regard order the profits to now we order making restaurants, technology, will and sales with XXX,XXX working to continue experience weeks. we loyalty customer engagement. reward push in these are currently insights our drive in customer sales. and We're will investments Ultimately, customer improve

the over programs We expect months. resulting to analysis implementing from begin marketing new several next this

have ordering platforms mobile we to with continue work selected have your them and Olo who partner. DoorDash delivery to our integrated now to addition, optimize with we be and In successfully delivery

rolling expect the XX% we XX% QX. our rollout marketplace area. out through We which system by not This this it of are point in delivery process the DoorDash restaurants service and at initial coverage to in our end fall expect to the month, of DoorDash's will will complete include of to which add

Houston. test Self-Ordering addition Performance while we which our like allowing would throughput, In expect to order our have Kiosks California, labor new especially stores believe of spend be about we're and continues non-core later I markets include to Kiosks this also efficiencies. and accuracy expectations, mixed which in are and also developing will now delivery, overall Northern and company We Huston to and to year. Dallas us average in not loyalty achieving Phoenix, improve they to Dallas. talk increase restaurants

XX XX execute Dallas, restaurants we company-operated context, to and company Texas brand In and continuing little XX margin with these points in by X re-launched same-store our basis and a QX, us provide X two two both of franchise. franchise leaving January reduced and restaurants XXX to sales program Texas, points. in contribution close by basis our Just XX company in markets. in We're restaurants XXXX restaurant operate in Houston, restaurants

growth. significant to-date, in net to one Consequently non-cash earlier. impair combined However sales resulted of company closed decided million in $XX.X impairment charge fully of Phoenix restaurant Houston, a I have see restaurant all we in which reserves noted and when the we that yet with sustained store Dallas

going non-core with we review determine markets the best continuing initiated in of program While strategy both relaunch Texas we our forward. our to have are all of market a

have restaurants we led of discussed, a probability and have development challenges core refocusing Texas markets, where criteria a have As on a sharpening of success. to in our our high new

opened Sacramento and four California. During the one we quarter, Southern in each two company in fourth restaurants, and Phoenix,

location in Salt opened franchisees Lake City. our Additionally, one

well build eight to ahead to as Looking we six XXXX, Company new new expect to operated location. eight six as to restaurants franchise

new reflective these plus QSR which the restaurants be believe positioning. we vision of will All our showcases design, better of

to continue including we During we the and completed remodels XX XX completed pleased results. in quarter, our with three XXXX our vision initial be at model visionary Franchisees design.

We for are costs XXXX remodels. reducing franchise Initial sales call on and remodels the continuing while company XX to preserving XX remodel focus restaurant lift. plans

Lastly, XXXX with we reflect to providing guidance. our following a annual are outlook

We lower expect $X.XX, from legislation benefit XXXX. pro diluted $X.XX estimated of an in tax from $X.XX forma resulting share enacted the which reform income to per net includes the tax

Our pro net based forma the for assumption. in is XXXX part guidance income on following annual

comparable sales wide approximately flat. system to restaurant expect be growth We

We expect franchisees six to to owned expect new to six restaurants open restaurants. company to open eight and new eight

and restaurant of XX.X% expect We XX.X%. margin between contribution

total expect and of CEO fees related securities X% of and X.X% transition between We to litigation legal excluding action costs. G&A class expenses revenue

a would million $XX We integrate pro happy strategic like That new you questions any and materially course bear of of as answer CEO. expect may on call we remarks. between again in And guidance us the to adjusted during a the of We and that that concludes using are maybe have. our forma now our we income year today. million mind, decisions you tax for the EBITDA thank by we impacted Please made rate joining are XX.X%. to prepared $XX

Operator

Jake [Operator SunTrust. question Instructions] from with proceed of first Please comes Our Bartlett question. your

Jake Bartlett

the you that didn't quarter, looking of surprised value impact Thank That the -- candid competition oriented of sort your environment, is environment quarter the are was But competitors looking this a question. at view around is and you your Larry, bit maybe first you a What work results. maybe you well something and telegraphed. did strategy. then why you. seeing some towards the have mean in with first answer around or the answer that, change more value quite that. a that was you Why to mid-year context didn’t just in the I anticipating go value

Laurance Roberts

of to consistently what I be we because fact careful profitability we Yeah we – in very having quarter discounting in, discounting year has seeing what and around to thanks. come – really value certainly we hard the you have out looked a said, want of it had your it's the we we and have in about and the joined of then impact game getting quarter that initiated all so start and were first as that was hurts into last discourage mean we an the and costs, increased. intensifying and by competitors that lot level discounting about we’re so that competition the talking seen just fourth of really discounting see more it

incremental careful really to down that the may results with about we the $X to driving first mean in trying differentiating value, things advertising through combos going more really really two to Being try doing. was game but driving our careful that where maybe you're The are jumping overall were we little strategy roll to sales, hearing to went of and just between profitability. keep over on it one the the So it thing may into we're depending about not next message. doing discounting we're do do we we just our bring out But menu like surprised. to menu. because stay want combos. We be meals. look a about just out your the stay $X getting But but or we our one started still the months, which around concept what and did authenticity we value careful I quarter maybe test bit

it we sure really were much caught trying not be away We about it. again, how it. from just to So we're and into stay careful by jump

be again challenge it that, you a jumping into And of As profitability. out once fray about be going to to down even be now start that cautious some testing gone, we're recognizing going but have going to path. the the really burger things, where we're you can hurt get guys that

Jake Bartlett

lot markets. mid-single question, I 'XX. What like can to It's in a or and that of greater there done makes going That the of to sense. growth another Do low-single your is opportunity it. And your markets. this digits think of then opportunity your is more does digits like? kind work markets markets? your grow you've constituted got Yes, unit it hard growth looks be your realize look you you know around in core about think in core core core in

Laurance Roberts

when we we've XX core Jake. we markets areas right core it in deals at doesn't markets. around And year I looked a go XX XX Yeah I identified we've think That mean and somewhere away. mean out and trade to can do our remaining in a that

to steak that going because all I has the to in to to X, challenge permitting core X and the [indiscernible] think in real X five X markets just at be things. give we're those and

be difficult think So sites. there it while the the can find sites, there, still good we to is some opportunity access

core going that X markets to probably forward. So range in in expecting I'm X

Laurance Roberts

much. Got it. Thank you very

Operator

proceed question your Mary Robert McNellis from Please questions. Our W. of Baird. with next comes

Mary McNellis

for in is performance question. Could restaurant you our afternoon, Texas. question on Texas the market? thanks margin that taking your is math My confirm in just negative Good

Laurance Roberts

into I whether are? quarter -- how of don't to I or with don't it's where just to margins what XXX actual fourth want about what or impact the I'll negative, positive said negative in it into want of an earlier, on basis and is. the which get get points was the I margins. it's positive how stick

Mary McNellis

talk about units to Okay. way market even think exiting that maybe Understood. closing make additional any And or when it about then to altogether? possibly sense

Laurance Roberts

up, October. program in as And have going work previously really things we're restaurants, relaunch began a involved things and and what we some we the back in employees some marketing as retraining that the about to the highlight implementing ramping do more work back different Yes that all past, we so marketing. and through in different talking doing the doing assets,

the last Dallas. just have radio off kicked including or things weeks those in X advertising really of over Some a X

the we've to continue relaunch program, it. got So monitor we

again As early the results still and the in still expectations, done the mean things it's we've but some relaunch. are said days there opening below I I the in remarks, are of

to So really And and relaunch start once making reevaluate marketplace. what -- the reading relaunch we'll where decisions then strategic results we'll we'll program. we're the and then going the results else continue onboard, based are gets some seeing the in on

Mary McNellis

That's from that topic. that for what perspective, XXXX? D&A you're just on you last for one Can provide expecting

Laurance Roberts

G&A.

Mary McNellis

Depreciation? D&A.

Laurance Roberts

it's expect sales Just about X.X%, a to earnings. give going second. me I be

Mary McNellis

you. Perfect, okay. Thank

Operator

from comes of DiFrisco Securities. Guggenheim your questions. question Please next Our proceed Matthew with

Matthew DiFrisco

Thank question, a first have a just you. I bookkeeping. but

or to that's quarter-to-date wondering trends it X%, quarter-to-date guiding I you now you seeing down So think those the right the comp. are down for Was are I'm is worse? said the comp you X% quarter? or

Laurance Roberts

seeing negative now, No quarter two negative those guiding system the comps. to for one to are we’re trends right we

Matthew DiFrisco

Okay, we lot mean I looking the people changing throughout the sequentially are of I is that you as quarter the there in Coast last comparisons XQ. year as very on are is ago anything mean of from West favorable in what some year weather lapping the lapping anything should consider this at far a

Laurance Roberts

last No, year, talked that. on year. February, I'll lapping I what are we impact February just guess starting that weather are highlight others comps was lapping weather California in impact really that was, we favorable so year from late is of most we And February last last really we about thought highlighted have point

So that. are lapping we

Matthew DiFrisco

lapping. on comparisons, you mean doing difference X% with now of So a X% going what what variance, of swing the how much a for are the you’re from how to you our lapping ago quarter factor what’s are I to much now so with end year

Laurance Roberts

what saying impact we percentage system not had X point on I question. fully am I is But last comps. sure, a am I the understand

would when account say worse like X% to are versus take only had negative year? X% we So I lap that you year can down last look favorable that in fact into this

Matthew DiFrisco

and walk economics some covered. can already might doing Postmates us delivery off of flow premise incremental through share bigger I your as the and as on be the then is I of Okay there through flow with through know you always us How very XX% factor and concern to be are just just is the economics were if store risk are becomes yet, comp the restaurants sales but not can do there of cannibalizing your coming strong a you some of you you’re through those strong work when guess I that business. the not

So off your I more carry am and out just of wondering of the store. come business premise people are

So could think you or accretion on impact of level about walk through how how can that should the the that economics we and margins.

Laurance Roberts

we types really so DoorDash were we been really one two are that call using what delivery, currently of rolled DoorDash. Yes, that with and is The there's implementing dispatch.

app, So customers or us. directly our to ordering are in going these mobile using on delivery are who a to website

So think $X.XX rate or the those is. are, for transactions, I the their delivery call $X is on is The economics depending of delivery for a paying additional fee us XXX what the a fee. plus consumer

should very fee and incremental for is directly are that be going they So those they transaction they because us highly low. are to fairly profitable, again

ticket be to will launch a The the looking which is DoorDash. we which ourselves paid be what on case second which QX, will which XX% marketplace, in DoorDash incurring incur, phase of in the is are introducing we others will to

basically a going would on to $X be So that ticket $XX DoorDash.

make we’ll because work incrementality where obviously a off versus that And pretty to consumer. a we the have ticket. that’s covering costs to drive really it big be that’s haircut So

Matthew DiFrisco

Thank Right. you.

Operator

Andy next proceed Barish question. Our your comes of instructions] from [Operator Jefferies. with question Please

Alexander Slagle

is and is quarter-to-date Trying between going the that to you. the the just Andy. you on core obviously how in and much more mind same-store of the gap market. about where non-core, for from little Alex would Texas into the a then thank thinking is the sales drag Hi, This that on in to understand challenges Larry, detail Texas. coming

Laurance Roberts

points much last basis points guidance talking a So of kind the too quarter, more fourth year, It's a QX detail between detail, again basis look Texas. XX range of about that’s in the incurring given quarter in we through the go XX of from won't the drag because running Texas. say the about of were drag as I drag quarter year, said saw I been terms and comp we’re last about of XX Yeah, at

Alexander Slagle

months thinking kind working metrics it the with guess of rear then that going Got I in tell that awareness? and that looking are now and mirror the at about what not of labor you is to you're re-launch or to view couple respect the this either or are

Laurance Roberts

Yeah.

in at So the really relaunch looking one, to really planned looking was consumer the at the things we're responses. was,

that And Mystery is measures customers. we so we at have a we shops from throughout have those scores. seen improvement looking we used, that what our and excellence last [ph] nice we're get in Texas

the that seen operationally, better a is start moving looking even we as them consumers and were And coming course sales just that up know one [ph] transactions service in. they're of and nice to obvious So to fairly we've providing significantly. and move watching

on on ultimately really using trying need And so their operationally. market. are said where seeing getting so good in the saying, We look measuring. operations we now push, coming the needle the and We're I we that's back. get feel blind about some we're do to move in good. and back Radio continuing restaurants, we're now and Dallas and to operations very to come people just go us, people and that shops we've metrics have the on And like to They're -- gone them getting

So significantly really them clearly and looking they get from sales watching sales right where drive today. fairly are now we're and just to up

Alexander Slagle

fairly broad the from fairly, more a markets? Texas? Got you it. do competitive place that think that core comment impact the across back to circle I based say hurts peers. Or on you you discounting are like guess I non-core mean think do is seeing in to

Laurance Roberts

business But cores seen actually the based. new Again across impact fairly it seen we broad across our performing our market. we've our No, obviously be are overall, an markets.

Alexander Slagle

it. Got

one may. Just if last I

you were said five. about asked and core For growth Three in the Jake's he'd to question, the

was to annual units X% three X% to confirm to growth from? that or five Just

Laurance Roberts

Three I'm sorry. units five to

Alexander Slagle

Got it.

you. Thank Okay.

Operator

Zackfia your comes question from Blair. Please William Our proceed next Sharon of questions. with

Sharon Zackfia

in question I trend. comp you've you guess had really good you I year have February talked the know the the then comp guidance on just a trend recall flat improvement given the whether in challenging any for Hi, a don't quarter. tougher. relative to year the Obviously correctly, February trying comparisons ago seen if getting negative to afternoon. the And in timeframe. about I January. If kind first breakdown I are

guess much kind I So counting on delivery back you're you get quantify value to of or how to could menu or initiatives marketing flat?

Laurance Roberts

or where the said remarks now We're had in XXX,XXX investment. point made We're getting of Yeah, we still looking so we've loyalty the actually of specific in some delivery are loyalty place going I opening today. in so. the not to customers. I'm phase. think over investment But we give growth. roughly Loyalty numbers. to kind Sharon, have I delivering and kick that now to as and months XXX,XXX six had we comp the really on start We're

coming and We're and to we with So we're continue grow. the program. that with and really the investment. customer on We Punch how to start targeting And collecting us data analysis loyalty made using that best Ancyra utilize helping that. up that been have

then clearly this And comp test. to It's looking and the And then as loyalty a going the value start implement little that especially in and delivery really really and also comp we as as Obviously in We'll driving test at six And remodels the it's some we shortly say And as picking to that next I delivering over to menu. business. especially starting then But loyalty value results, see ultimately also a fairly and and and comp really data be that get we testing comps -- customers. last in for drivers that months said loyalty. something the that And read year. our continue put from bit the something investments really other to start get expect I'd target growth months. it. we results. that them initiatives to we it in loyalty do made the the on we're shortly, we're technology driver. very last reading we'll So utilizing you that's and in kicking them looking throughout several is we year on over especially the start

Sharon Zackfia

don't Did commodity labor outlook if that. I you us you for guess an and another question. 'XX? gave inflation figures know I give I missed for

Laurance Roberts

can but give to I didn't, No, you now. it I

inflation X% and inflations We expect labor around commodity of around X.X%.

Sharon Zackfia

you. Thank

Operator

Our is next from Please your with question follow-up of Sun a Bartlett question. Jake proceed Trust.

Jake Bartlett

Great, thanks.

kind the the but really So question, of what book in wide quarter? fourth sales were system keeping

Laurance Roberts

in wide quarter $XXX.X System million. the sales were fourth

Jake Bartlett

it to but about then the for fourth going your the newer the And in the X for Great. unit going those growth are X? franchise, market sounds stores, the like in [indiscernible] to the core be be company in is to franchise the what the in for markets

Laurance Roberts

be will there don't, of some market. newer the I Yes,

some few Lake market detail expect a at to are back expected. Salt rest there are other City out of to then have in have couple of a openings. a markets the see go we know slotted, we're the I Texas certainly in and look So I but

Jake Bartlett

pricing the fourth in are lastly, what menu your expectations your for XXXX? what And Okay. was quarter, then

Laurance Roberts

quarter X.X% So this the for about year. the pricing was same gross pricing it's fourth in and

X.X% Now to the breakdown the markets. in pricing in somewhere say year and LA it's market. response in minimum core those Well this will increases incremental be X.X% those I'll in be in I San going and to think around wage core Francisco generally but the

Jake Bartlett

Got it.

for first you to in quarters X.X quarter about heard were So the if and three X.X you it went I correctly fourth? the

Laurance Roberts

Well is by QX year X.X, year last X.X, last so X.X, X.X, X.X.

Jake Bartlett

Okay. Thank very you much.

Laurance Roberts

Thanks.

Operator

DiFrisco Please proceed with a your Guggenheim Our of next Securities. follow-up Matthew questions. is question from

Matthew DiFrisco

intel you of couple guess of months a that in to start last Thank messaging of able in I bit it's and are you. of sort give Larry, com months tell broader of of so? in have their to have you XXXX? last is hasn't or you months, including to that that think Chicken there turned the strong pretty changed been last also affected couple little response or Is I competition it because the last the really guess of been couple much, certainly value are how can the who arena on broad around eighteen guys changed you to QSR Burger guys -- sort

Laurance Roberts

see Yes, but there aggressive. other seen I Popeye like doing are the of that kind their of chain people an overtime, the and $X aware seen being Jack and Burger more [indiscernible] and They pickup McDonald's Certainly start use haven't foods KFC and still here, I become the King just seen you and meals and really and the seen, said, there get to think we I things more California people discounts Mark have changed. aggressive those now out [ph] Burger also tune. pushing But it. meals, really really $XX now we've haven't guys. those and is haven't and at change McDonald's, out more the and guys I more family King their the more is

then with So, has starting now Taco of you more Bell kind and aggressive be and in along to Taco. said jumped Del they are

they and see being Burger value really of Taco I push just talking response their our think about. Bell their others not and talk King's in are natural they lot discounter stepping and players to discounting. hard they because used as more it aggressive even in of aggressive I themselves mean you being but these and to a a just that more promoting games So McDonald's are terms

for and from and more I also an start pushing think QSR in of lot effect it there range. higher that seen value a more. more I we've that that more these think do people just voice these $X share a to competitors $X, using deals and really So, $X, menus overtime is

Matthew DiFrisco

Thank helpful. you. very That's

Operator

our end session. question-and-answer the today's This reached we've conference. does gentlemen of and conclude Ladies

your wonderful day. Thank for participation your and You at you a may lines this have disconnect time.

El Pollo Loco (LOCO) 8 Mar 182017 Q4 Earnings call transcript