EPL
Intermediate, Inc. Announces Results for the


13
Weeks and 39 Weeks Ended September 29, 2010








COSTA
MESA, CA -- (BUSINESS WIRE) – November 12, 2010 - EPL Intermediate, Inc. (“El
Pollo Loco” or the “Company”), parent company of El Pollo Loco, Inc., today
reported results for the 13-week third quarter and 39 weeks ended September 29,
2010.





El Pollo
Loco reported total operating revenue for the 13-week third quarter ended
September 29, 2010 of $68.2 million, which is a decrease of $0.3 million, or
0.4%, below total operating revenue for the 13-week quarter ended September 30,
2009 of $68.5 million.  Total operating revenue includes sales at
company-operated stores and franchise revenue.





The
decrease in total operating revenue was primarily attributed to a
2.2% decrease in system-wide same-store sales for the 13-week third quarter
of 2010 compared to the 13-week third quarter of 2009.  Restaurants
enter the comparable restaurant base for same-store sales the first full week
after that restaurant’s 15-month anniversary.





Commenting
on results for the third quarter of 2010, Steve Sather, acting president and CEO
of El Pollo Loco, Inc. said, “Traffic frequency in our restaurants continues to
be adversely affected by the challenging economy and high level of unemployment
in our core markets, and in particular among Hispanics which are a key
demographic for our brand.  During the quarter, we had a limited time
offer for our Queso Crunch Burrito, which we launched with a new twist-- a
choice of flame-grilled chicken or steak, and our Double Your Chicken for $5
offer with the purchase of any 8, 10 or 12-piece meal.  We believe
that the key to driving sales in this challenging environment is to remain
keenly focused on striking the right balance between value and check performance
while continuing our system-wide focus on operational excellence and exceptional
guest service.”





Operating
income increased $0.2 million, or 3.3%, to $4.9 million for the 13 weeks ended
September 29, 2010 from $4.7 million for the 13 weeks ended September 30,
2009.  This increase in operating income was mainly due to lower
restaurant asset impairment charges and a decrease in our product cost, which
were partially offset by higher payroll and benefit costs.





Interest
expense, net of interest income, increased $0.4 million, or 4.8%, to $9.5
million for the 13 weeks ended September 29, 2010 from $9.1 million for the 13
weeks ended September 30, 2009.





Despite
having a loss for the 13 weeks ended September 29, 2010 and September 30,
2009, we had an income tax provision of $0.2 million and $0.3 million,
respectively, primarily related to the effect of changes in our deferred taxes
and the related effect of maintaining a full valuation allowance against certain
of our deferred tax assets as of September 29, 2010.










As a
result of the factors cited above, there was a net loss for the 13 weeks ended
September 29, 2010 of $4.8 million compared to a net loss of $4.6 million for
the 13 weeks ended September 30, 2009.





Total
operating revenue for the 39 weeks ended September 29, 2010 was $207.4million, which was a
decrease of $4.4 million, or 2.1%, from total operating revenue for the 39 weeks
ended September 30, 2009 of $211.8 million.   The decrease was
primarily due to a decrease in same-store sales of 4.7% for the system for
the 39 weeks ended September 29, 2010 compared to the corresponding period of
2009.




Operating
income increased $3.6 million, or 27.6%, to $16.5 million for the 39 weeks ended
September 29, 2010 from $12.9 million for the same period of
2009.  This increase in operating income was due primarily to a
decrease in our product cost, lower legal settlements and lower restaurant asset
impairment charges, which were partially offset by lower total operating revenue
and an increase in our closed store reserve.




Despite
having a loss for the 39 weeks ended September 29, 2010, we had an income tax
provision of $1.0 million, primarily related to the effect of changes in our
deferred taxes and the related effect of maintaining a full valuation allowance
against certain of our deferred tax assets as of September 29,
2010.  For the 39 weeks ended September 30, 2009, we had an income tax
provision of $19.8 million as we recorded a valuation allowance against our
deferred tax assets and the effect of changes in our deferred
taxes.




As a
result of the factors noted above, the company had a net loss for the 39 weeks
ended September 29, 2010 of $12.5 million compared to a net loss of $30.4
million for the 39 weeks ended September 30, 2009.




Commenting
on the remainder of 2010, Sather said, “With the economy continuing to
negatively impact consumer spending, we are taking this time to align our entire
team, company members and franchisees, around a sharpened focus on quality,
service, and cleanliness as a platform to strengthen our position in the
marketplace and set ourselves up for momentum when the economy turns
around.  We will also continue to strive to provide our guests value,
while protecting profits,with new menu items
that leverage our flame-grilling expertise; greater menu variety with both
chicken and steak; our Loco Value Menu; and compelling family meal
offers.”





El Pollo
Loco’s restaurant count changes for the 13 weeks ended September 29, 2010 are as
follows:





Company
                          
                          
                          Franchised Stores
                          
                          
                          TotalAt
      June 30, 2010
                          
                          
                          171
                          
                          
                          
                          241
                          
                          
                          
                          412Opened
                          
                          
                          -
                          
                          
                          
                          1
                          
                          
                          
                          1Closed
                          
                          
                          (1)
                          
                          
                          
                          -
                          
                          
                          
                          (1)At
      September 29, 2010
                          
                          
                          170
                          
                          
                          
                          242
                          
                          
                          
                          412











Addressing
the Company’s development plans, Sather commented, “As we shared earlier this
year, we expect to open fewer restaurants this year than last, due in part to
the continued difficulty franchisees have securing financing in this tough
environment and the impact that the challenging economy has had on our
franchisees, several of whom have delayed or reduced the number of new
restaurants they plan to open.  During the third quarter of 2010, one
new franchise restaurant opened in San Diego, CA and we closed one company
restaurant in Sanger, CA. Since the end of the third quarter, one additional
franchise restaurant opened in Rohnert Park, CA.





“We plan
to open one more restaurant before the end of 2010, a company-operated
restaurant in Anaheim, CA, which will reflect a lower investment cost and
several new features to further enhance our guests’ experience.”


System-wide
Sales




Included
above is system-wide same-store sales information. System-wide same-store sales
are a financial measure that includes sales at all company-owned stores and
franchise-owned stores, as reported by franchisees. Management uses system-wide
same-store sales information internally in connection with store development
decisions, planning and budgeting analyses. Management believes system-wide
same-store sales information is useful in assessing consumer acceptance of the
Company’s brand and facilitates an understanding of financial performance as the
Company’s franchisees pay royalties and contribute to advertising pools based on
a percentage of their sales.




Safe Harbor
Statement




This news
release may be deemed to contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The Company intends that all such statements be
subject to the safe harbor provisions contained in those
sections.  Forward-looking statements are statements that do not
relate solely to historical fact.  They include, but are not limited
to, statements which begin with phrases such as “we believe that the key to
driving sales in the months ahead, ...”  “commenting on the remainder of
2010, ...” “we will also strive to provide our guests value...” “we expect to open
fewer restaurants this year than last,” and “we plan to open one more restaurant
before the end of 2010,” and any other statements that may predict, forecast,
indicate or imply future results, performance, achievements or
events.  Forward-looking statements generally contain words such as
“believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,”
“will,” “should,” “may,” “could” or words or phrases of similar
meaning.  Forward-looking statements reflect management's current
expectations regarding future results, performance, achievements or events that
involve risks and uncertainties.  Readers are cautioned that these
forward-looking statements are only predictions and many important factors,
including factors outside of the control of the Company, could cause actual
results, performance, achievements or events to differ materially from those
discussed in the forward-looking statements.  Factors that could cause
actual results to differ materially from those expressed or implied by the
forward-looking statements include but are not limited to: the adverse impact of
economic conditions on our operating results and financial condition, on our
ability to comply with the terms and covenants of our debt agreements, and on
our ability to pay or to refinance our existing debt or to obtain additional
financing; our substantial level of indebtedness; food-borne-illness incidents;
risks arising from the delay or inability to hire new executives for our
currently vacant president/Chief Executive Officer and Chief Marketing Officer
positions since the Company depends on the unique abilities and knowledge of its
officers; negative publicity, whether or not valid; increases in the cost of
chicken; our dependence upon frequent deliveries of food and other
supplies; our vulnerability to changes in consumer preferences and economic
conditions; our sensitivity to events and conditions in the Southern California
area, our largest market; our ability to compete successfully with other quick
service and fast casual restaurants; our ability to expand into new markets; our
reliance on our franchisees, who have also been adversely impacted by the
challenging economic condition; matters relating to labor laws and the adverse
impact of related litigation, including wage and hour class actions; our ability
to support our  franchise system; our ability to renew leases at the
end of their term; the impact of applicable federal, state or local government
regulations; our ability to protect our name and logo and other proprietary
information; litigation we face in connection with our operations; and other
risk factors listed from time to time in the Company's reports filed with the
Securities and Exchange Commission.  Although the Company believes
that the assumptions underlying the forward-looking statements are reasonable,
any of the assumptions could prove inaccurate and, therefore, the Company cannot
assure the reader that the results, performance, achievements or events
contemplated by the forward-looking statements will be realized in the timeframe
anticipated or at all.  In light of the significant uncertainties
inherent in forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by the Company or any
other person that the Company’s objectives or plans will be
achieved.  Accordingly, readers are cautioned not to place undue
reliance on such forward-looking statements.  The Company undertakes
no obligation to publicly update or revise any forward-looking statement,
whether as the result of new information, future events or
otherwise.  The financial information contained in this release should
be read in conjunction with the consolidated financial statements and notes
thereto included in the Company’s most recent annual report on Form 10-K and
subsequent quarterly reports on Form 10-Q, as each may be amended from time to
time.  Statements about the Company’s past performance are not
necessarily indicative of its future results.










About the
Company





El Pollo
Loco® is the nation’s leading restaurant concept specializing in flame-grilled
chicken.  Headquartered in Costa Mesa, California, El Pollo Loco, Inc.
operates a restaurant system comprised of 170 company-operated and 242
franchised restaurants (as of September 29, 2010) located primarily in
California, with additional restaurants in Arizona, Colorado, Connecticut,
Georgia, Illinois, Missouri, Nevada, New Jersey, Oregon, Texas, Utah and
Virginia.  El Pollo Loco’s menu features the Company’s signature
citrus-marinated, flame-grilled chicken in individual and family-size meals
served with a choice of corn or flour tortillas, freshly-prepared salsas and an
assortment of side orders.  El Pollo Loco also serves a variety of
contemporary, Mexican-inspired entrees featuring the chain’s citrus-marinated,
flame-grilled chicken and carne asada, including Pollo Bowl® entrees, pollo
salads, grilled burritos, tacos, quesadillas and more.  For more
information about the Company, visit www.elpolloloco.com.




Contacts:
              Gary
      Campanaro
              Julie
      WeeksChief
      Financial Officer
              Vice
      President of CommunicationsEl
      Pollo Loco, Inc.
              El
      Pollo Loco, Inc.714.599.5155
              714.599.5150gcampanaro@elpolloloco.com
              jweeks@elpolloloco.com









Summary of Financial
Information





EPL
INTERMEDIATE, INC.


(A
Wholly Owned Subsidiary of El Pollo Loco Holdings, Inc.)





CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


(Amounts
      in thousands)





13 Weeks Ended
                                            
                                            
                                            39 Weeks EndedSeptember
      30,
                                            
                                            
                                            September
      29,
                                            
                                            
                                            September
      30,
                                            
                                            
                                            September
      29,2009
                                            
                                            
                                            2010
                                            
                                            
                                            2009
                                            
                                            
                                            2010OPERATING
      REVENUE:Restaurant
      revenue
                                            
                                            $
                                            63,740
                                            
                                            
                                            $
                                            63,756
                                            
                                            
                                            $
                                            197,444
                                            
                                            
                                            $
                                            193,686Franchise
      revenue
                                            
                                            
                                            4,764
                                            
                                            
                                            
                                            4,457
                                            
                                            
                                            
                                            14,357
                                            
                                            
                                            
                                            13,754Total
      operating revenue
                                            
                                            
                                            68,504
                                            
                                            
                                            
                                            68,213
                                            
                                            
                                            
                                            211,801
                                            
                                            
                                            
                                            207,440OPERATING
      EXPENSES:Product
      cost
                                            
                                            
                                            20,587
                                            
                                            
                                            
                                            19,919
                                            
                                            
                                            
                                            63,747
                                            
                                            
                                            
                                            60,465Payroll
      and benefits
                                            
                                            
                                            16,621
                                            
                                            
                                            
                                            17,359
                                            
                                            
                                            
                                            52,391
                                            
                                            
                                            
                                            52,266Depreciation
      and amortization
                                            
                                            
                                            3,015
                                            
                                            
                                            
                                            2,755
                                            
                                            
                                            
                                            8,651
                                            
                                            
                                            
                                            7,949Other
      operating expenses
                                            
                                            
                                            23,544
                                            
                                            
                                            
                                            23,285
                                            
                                            
                                            
                                            74,090
                                            
                                            
                                            
                                            70,271Total
      operating expenses
                                            
                                            
                                            63,767
                                            
                                            
                                            
                                            63,318
                                            
                                            
                                            
                                            198,879
                                            
                                            
                                            
                                            190,951OPERATING
      INCOME
                                            
                                            
                                            4,737
                                            
                                            
                                            
                                            4,895
                                            
                                            
                                            
                                            12,922
                                            
                                            
                                            
                                            16,489INTEREST
      EXPENSE—Net
                                            
                                            
                                            9,075
                                            
                                            
                                            
                                            9,506
                                            
                                            
                                            
                                            23,501
                                            
                                            
                                            
                                            27,981OTHER
      EXPENSE
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            443
                                            
                                            
                                            
                                            -OTHER
      INCOME
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (452
                                            )
                                            
                                            
                                            -LOSS
      BEFORE PROVISION FOR INCOME TAXES
                                            
                                            
                                            (4,338
                                            )
                                            
                                            
                                            (4,611
                                            )
                                            
                                            
                                            (10,570
                                            )
                                            
                                            
                                            (11,492
                                            )PROVISION
      FOR INCOME TAXES
                                            
                                            
                                            306
                                            
                                            
                                            
                                            221
                                            
                                            
                                            
                                            19,848
                                            
                                            
                                            
                                            994NET
      LOSS
                                            
                                            $
                                            (4,644
                                            )
                                            
                                            $
                                            (4,832
                                            )
                                            
                                            $
                                            (30,418
                                            )
                                            
                                            $
                                            (12,486
                                            )









13
      Weeks Ended
                                          
                                          
                                          39
      Weeks EndedSeptember
      30,
                                          
                                          
                                          September
      29,
                                          
                                          
                                          September
      30,
                                          
                                          
                                          September
      29,2009
                                          
                                          
                                          2010
                                          
                                          
                                          2009
                                          
                                          
                                          2010Operating
      Statement Data:Restaurant
      revenue
                                          
                                          
                                          100.0
                                          %
                                          
                                          
                                          100.0
                                          %
                                          
                                          
                                          100.0
                                          %
                                          
                                          
                                          100.0
                                          %Product
      cost
                                          
                                          
                                          32.3
                                          
                                          
                                          
                                          31.2
                                          
                                          
                                          
                                          32.3
                                          
                                          
                                          
                                          31.2Payroll
      and benefits
                                          
                                          
                                          26.1
                                          
                                          
                                          
                                          27.2
                                          
                                          
                                          
                                          26.5
                                          
                                          
                                          
                                          27.0Depreciation
      and amortization
                                          
                                          
                                          4.7
                                          
                                          
                                          
                                          4.3
                                          
                                          
                                          
                                          4.4
                                          
                                          
                                          
                                          4.1Other
      operating expenses
                                          
                                          
                                          36.9
                                          
                                          
                                          
                                          36.5
                                          
                                          
                                          
                                          37.5
                                          
                                          
                                          
                                          36.3Operating
      income
                                          
                                          
                                          7.4
                                          
                                          
                                          
                                          7.7
                                          
                                          
                                          
                                          6.5
                                          
                                          
                                          
                                          8.5Interest
      expense-net
                                          
                                          
                                          14.2
                                          
                                          
                                          
                                          14.9
                                          
                                          
                                          
                                          11.9
                                          
                                          
                                          
                                          14.4Other
      expense
                                          
                                          
                                          0.0
                                          
                                          
                                          
                                          0.0
                                          
                                          
                                          
                                          0.2
                                          
                                          
                                          
                                          0.0Other
      income
                                          
                                          
                                          0.0
                                          
                                          
                                          
                                          0.0
                                          
                                          
                                          
                                          (0.2
                                          )
                                          
                                          
                                          0.0Loss
      before provision for income taxes
                                          
                                          
                                          (6.8
                                          )
                                          
                                          
                                          (7.2
                                          )
                                          
                                          
                                          (5.4
                                          )
                                          
                                          
                                          (5.9
                                          )Provision
      for income taxes
                                          
                                          
                                          0.5
                                          
                                          
                                          
                                          0.3
                                          
                                          
                                          
                                          10.1
                                          
                                          
                                          
                                          0.5Net
      loss
                                          
                                          
                                          (7.3
                                          )
                                          
                                          
                                          (7.6
                                          )
                                          
                                          
                                          (15.4
                                          )
                                          
                                          
                                          (6.4
                                          )Supplementary
      Operating Statement Data:Restaurant
      other operating expense
                                          
                                          
                                          24.7
                                          
                                          
                                          
                                          24.2
                                          
                                          
                                          
                                          23.6
                                          
                                          
                                          
                                          24.0Franchise
      expense
                                          
                                          
                                          1.5
                                          
                                          
                                          
                                          1.8
                                          
                                          
                                          
                                          1.5
                                          
                                          
                                          
                                          1.6General
      and administrative expense (1) (2)
                                          
                                          
                                          10.7
                                          
                                          
                                          
                                          10.5
                                          
                                          
                                          
                                          12.4
                                          
                                          
                                          
                                          10.7Total
      other operating expenses
                                          
                                          
                                          36.9
                                          
                                          
                                          
                                          36.5
                                          
                                          
                                          
                                          37.5
                                          
                                          
                                          
                                          36.3


(1)
            General
      and administrative expenses as a percent of total operating revenue for
      the 13 weeks ended September 30, 2009 was 10.0% and 9.8% for the 13 weeks
      ended September 29, 2010.




(2)
            General
      and administrative expenses as a percent of total operating revenue for
      the 39 weeks ended September 30, 2009 was 11.6% and 10.0% for the 39 weeks
      ended September 29, 2010.