Spanish Chicken Restaurant Chain Operator The Crazy Chicken (NASDAQ: LOCO) The shares were taken to the timber store in 2022 The company replaced its CEO immediately after the Q21 earnings announcement of 2021 and is looking for a new CFO. Top line Q4 2021 and Q1 2022 deficits were still blamed for the COVID-19 effects, which investors are tired of on the pretext. While other restaurants and retailers are posting double and triple-digit profits on paint-up demand from the lockdown, El Polo is still struggling to maintain recovery. The removal of its former CEO could be a start in the right direction as the company seeks to implement a number of initiatives arising from culture, brand differences, customer service and accelerated development. The 2020 Q4 2021 deficit was also attributed to the 2020 Explanation Week that the comparison fell short of $ 4.6 million. When the company faced commodity inflation of about 18% in the first quarter of 2022, it offset them by raising prices and expects to reduce costs for boneless chicken and avocado by the end of the year. With the demise of Omicron, sales are expected to pick up again, despite the background of inflation. Wise investors looking for an opportunity to dive into the Mexican fast casual restaurant segment can see the opportunistic pullback in El Polo Loco shares.
Q4 2021 Earnings Release
On March 10, 2022, El Polo released its financial quarter results for the quarter ending December 2021. The company reported earnings of $ 0.17 per share and consensus analyst estimates $ 0.12, $ 0.05 per share. Revenue fell (-1.2%) year-on-year (YoY) to $ 109 million, according to the consensus analyst estimate of $ 108.53 million. System-wide comparable restaurant sales rose 11%. The company claims that the Covid-19 had a significant impact in the first quarter of 2022 because comparative sales increased 7.4% year on year. Due to Covid uncertainty, the company did not provide 2022 estimates. The company appoints CFO Larry Roberts as the new CEO, effective only when the company conducts a search for a new CFO. CEO Roberts commented, “Despite the ongoing external challenges, we posted strong results for the 2021 shutdown, an example of the 11.0% increase in system-wide comparable restaurant sales and $ 0.17 earnings per share. While January and February were negatively impacted by Omicron growth, the system’s comparative restaurant sales continue to grow and strengthen, as the impact has waned in recent weeks. “
Conference Call Takeaways
CEO Roberts tried to set a positive tone, “As we announced earlier in our January business update, we are satisfied with our sales and operating performance in the fourth quarter, as we posted an 11% increase in system-wide comparable restaurant sales.” The Stuffing Challenge and the revival of Kovid have had a lasting effect on the comparable sales of our company-owned restaurants, which ranged from about 5 percentage points to 6 percentage points this quarter. ” As it spreads, the growing number of applicants is enabling the company to reduce staff shortages. Improving customer service and experience. The company has implemented more employee recognition efforts, including launching an employee appreciation month with an employee recruitment survey for the first time in a decade. His br Jand plans to follow young customers by intensifying awareness efforts Digital sales account for 11% to 12% of total sales, up from 10% in 2020. A targeted market campaign that integrates TV, social and digital media channels to target different groups. El Polo is also working on a simplified menu that will be released in 2022 which will improve service and order accuracy faster with process simplification. System Acceleration চায় Over 2 million systems the system seeks to strengthen the top and bottom lines beyond restaurant volume. The company wants to strengthen its franchise operations by adding a senior vice president to the franchising and is in the process of hiring a director of franchise sales to focus solely on hiring new franchisees. They will expand recruitment efforts to include mid-scale operators and multi-concert franchisees, and involve senior management in the process and attend conferences.
LOCO Price Trajectories
LOCO provides a comprehensive view of the landscape for stock using rifle charts in monthly and weekly time frames. The weekly rifle chart consists of a Lower Market Structure (MSL) Buy a breakout trigger above .7 11.72. The 5-period moving average (MA) resistance of the weekly inverse sin breakdown is $ 11.81 and the 15-period MA is 99 12.99 and the 200-period MA is .5 14.52 and the 50-period MA is .5 15.59. Weekly lower Bollinger Bands (BBs) sit around $ 10.75 Fibonacci (Five) layer. The weekly top BBs sit at 15.59. The daily rifle chart is at a slower pace, rising to 5-period MA $ 11.55 and rising to 15-period MA $ 11.43. Daily Stochastic is forming a small puppy through the 30-band. Daily 50-period MA sits at $ 12.61 and daily upper BBs at $ 13.10 and daily 200-period MA at $ 15.30. Daily low BB sits at $ 10.25. Discretionary investors can see the opportunistic pullback entry level at $ 11.34, $ 10.75 fib, $ 10.23 fib, $ 9.82 fib, $ 8.99 fib, $ 8.45 fib, and $ 7.91 fib. Upside Trajectories range from $ 13.20 Fib level to $ 15.67 Fib level.