Pollo Loco warns of lower Q4 revenue as COVID expenses mount

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Shares of El Pollo Loco Holdings Inc. fell nearly 6% in the extended session Tuesday after the fast-food company said that reduced operating hours for many of its locations and temporary closures related to the pandemic hit sales in the fourth quarter. El Pollo Loco said it expects fourth quarter revenue between $109.5 million and $110.5 million; analysts surveyed by FactSet expect sales around $117 million. System-wide comparable-restaurant sales for the fourth quarter fell 0.2%, contrasting with growth of 3.9% in the year-ago period. Moreover, the company has spent about $2.5 million in COVID-related charges, mostly related to leaves of absence and overtime pay, of which $1.7 million weren’t expected, Pollo Loco said. Shares of Pollo Loco had ended the regular trading day up 4.6%.
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