Revenue during the quarter grew 5.74 percent to $99.77 million from $94.35 million in the previous year period. Gross margin for the quarter expanded 47 basis points over the previous year period to 45.15 percent. Total expenses were 90.62 percent of quarterly revenues, up from 89.09 percent for the same period last year. That has resulted in a contraction of 153 basis points in operating margin to 9.38 percent.

Operating income for the quarter was $9.36 million, compared with $10.29 million in the previous year period.

Adjusted EBITDA for the quarter was almost stable at $15.98 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 98 basis points in the quarter to 16.02 percent from 17 percent in the last year period.

Steve Sather, president and chief executive officer of El Pollo Loco Holdings, Inc., stated, “While we are not satisfied with our sales performance, we are pleased with the progress we’ve made since the end of February in the face of industry headwinds. We believe that our strategy of highlighting our differentiated product and authentic brand, while enhancing our strong value equation, will create both top and bottom line growth. Drivers such as our new advertising campaign, technology initiatives focused on convenience and loyalty, and our focus on reinforcing the value proposition of our family meals, are all aimed at generating traffic and strengthening our brand.”

For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.65 to $0.69.