EPL
Intermediate, Inc. Announces Results for the


Year
Ended December 30, 2009





COSTA
MESA, CA -- (BUSINESS WIRE) - March 30, 2010 - EPL Intermediate, Inc. (“El Pollo
Loco” or the “Company”), parent company of El Pollo Loco, Inc., today reported
results for its year ended December 30, 2009.  For purposes of
simplicity, the Company has described the fiscal years ended December 30, 2009
and December 31, 2008 as December 31, 2009 and December 31, 2008,
respectively.





El Pollo
Loco reported operating revenue for the year ended December 31, 2009 of $277.7
million, which is a decrease of $21.2 million, or 7.1%, from operating revenue
for the year ended December 31, 2008 of $298.9 million.  Operating
revenue includes sales at company-operated stores and franchise
revenue.





The
decrease in 2009 operating revenue was primarily attributed to an 8.2%
decrease in system-wide same-store sales for the year ended December 31, 2009
compared to a 0.2% increase for the year ended December 31,
2008.  Restaurants enter the comparable restaurant base for the
calculation of same-store sales the first full week after the 15-month
anniversary of the opening.





Also
contributing to the decrease in 2009 operating revenue was $4.5 million in
company-operated restaurant revenue generated in the 53rd week of
fiscal 2008 that did not occur in 2009 and decreased development fees attributed
to fewer franchised restaurant openings in 2009 as a result of the challenging
economic environment.  These decreases were partially offset by $3.5
million for eight new stores opened in 2008 and $2.8 million for four units
opened in 2009.





Commenting
on the Company’s 2009 results, Stephen E. Carley, president and CEO of El Pollo
Loco, Inc., said, “As we anticipated, 2009 was among the most challenging years
in our 30-year history.  Further contraction in the economy and
disproportionately high unemployment, underemployment and home foreclosure rates
in our core markets, and in particular among Hispanics which are a key
demographic for our brand, contributed to our first year of negative system-wide
same-store sales in a decade.”





“Continued
frugality among consumers dining out also impacted us in
2009.  Mainstay promotions that worked well in the past did not
deliver the top-line results they once did.  The Loco Dollar Menu,
however, continued to work for us in delivering a value message to
consumers.  Further, 2009 Sandelman & Associates Quick-Track data
in our core Los Angeles market confirmed that, despite our sales softness, we
increased our market share of total QSR occasions.  This achievement
is attributed to our flexibility in responding quickly to deteriorating economic
conditions with new marketing programs and also to our Taste the Fire® campaign,
which successfully promoted El Pollo Loco’s superiority as the flame-grilled
chicken leader on the heels of KFC’s 2009 grilled chicken launch.”





The
Company had a net loss for the year ended December 31, 2009 of $52.3 million
compared to a net loss of $39.5 million for the year ended December 31,
2008.  For both 2009 and 2008, the net loss was impacted by impairment
charges to intangible assets of $17.4 million and $42.1 million,
respectively.  The 2009 loss included an income tax expense of $15.6
million compared to an income tax benefit of $12.1 million in 2008.




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Commenting
on 2010, Carley said, “While the economy remains challenging, the learning we
gleaned in 2009 has made us stronger and more resilient.  We recently
completed extensive research culminating in a refined brand positioning that is
driving our strategic initiatives.  The January introduction of
citrus-marinated, flame-grilled Sirloin steak aligns well with this research,
which elevates our real grills and flame-grilling expertise as important and
defining assets for our brand.”





“Our
focus in 2010 will continue to be on delivering exceptional guest service;
refreshing our restaurants; designing a compelling and lower cost restaurant
prototype to fuel growth in a variety of real estate formats; developing
appealing new products for our citrus-marinated, flame-grilled chicken and
steak; and introducing promotions that deliver the price-value equation
consumers demand during challenging times.”





El Pollo
Loco’s restaurant count changes for 2009 are as follows:




Company
                        
                        
                        Franchised Stores
                        
                        
                        TotalDecember
      31, 2008
                        
                        
                        165
                        
                        
                        
                        248
                        
                        
                        
                        413Opened
                        
                        
                        4
                        
                        
                        
                        8
                        
                        
                        
                        12Purchased/Transferred
      from Franchisees
                        
                        
                        4
                        
                        
                        
                        (4
                        )Closed
                        
                        
                        (1
                        )
                        
                        
                        (9
                        )
                        
                        
                        (10
                        )December
      31, 2009
                        
                        
                        172
                        
                        
                        
                        243
                        
                        
                        
                        415





Addressing
the Company’s restaurant growth in 2009, Carley said, “We continued our
expansion despite the difficult economy.  Together with our
franchisees, we opened 12 stores, including our first restaurants in the states
of New Jersey and Missouri.  We also acquired four Atlanta area El
Pollo Loco restaurants in September from our Atlanta franchise group, which
closed its remaining five El Pollo Loco restaurants.”





The
Company plans to open two stores in 2010 in an effort to conserve capital and
expects its franchisees to open only three restaurants during the year due in
part to the current economic crisis and the difficulty franchisees are having in
obtaining financing.  New stores opened in 2010 will be in areas where
El Pollo Loco already has a presence.





System-wide
Sales




Included
above is system-wide same-store sales information. System-wide 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
sales information internally in connection with store development decisions,
planning and budgeting analyses. Management believes system-wide 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.




2




Safe Harbor
Statement




This news
release contains forward-looking statements, which are statements that do not
relate solely to historical fact.  They include, but are not limited
to, any statement that may predict, forecast, indicate or imply future results,
performance, achievements or events.  They may contain words such as
“believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,”
“will,” “should,” “may,” “could” or words or phrases of similar
meaning.  The statements reflect management's current expectations
regarding future events.  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
refinance our existing debt or to obtain additional financing; our substantial
level of indebtedness; food-borne-illness incidents; 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 greater Los Angeles 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 recession; 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.  Statements
about the Company’s past performance are not necessarily indicative of its
future results.  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.





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 172 company-operated and 243
franchised restaurants (as of December 31, 2009) 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,
along with a variety of contemporary, Mexican-inspired entrees.  Such
entrees contain the Company’s signature chicken as the central ingredient and
include Pollo Bowl® entrees, pollo salads, signature grilled burritos, tacos,
and chicken tortilla soup.  Chicken meals are served with a choice of
corn or flour tortillas, freshly-prepared salsas and an assortment of side
orders.  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




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Summary Financial
Information





EPL
      INTERMEDIATE, INC.(A
      Wholly Owned Subsidiary of El Pollo Loco Holdings, Inc.)CONSOLIDATED
      STATEMENTS OF OPERATIONS(Amounts
      in thousands)




Years
      EndedDecember
      26,
                                    
                                    
                                    December
      31,
                                    
                                    
                                    December
      30,2007
                                    
                                    
                                    2008
                                    
                                    
                                    2009OPERATING
      REVENUE:Restaurant
      revenue
                                    
                                    $
                                    259,987
                                    
                                    
                                    $
                                    278,343
                                    
                                    
                                    $
                                    258,904Franchise
      revenue
                                    
                                    
                                    19,038
                                    
                                    
                                    
                                    20,587
                                    
                                    
                                    
                                    18,790Total
      operating revenue
                                    
                                    
                                    279,025
                                    
                                    
                                    
                                    298,930
                                    
                                    
                                    
                                    277,694OPERATING
      EXPENSES:Product
      cost
                                    
                                    
                                    81,233
                                    
                                    
                                    
                                    89,442
                                    
                                    
                                    
                                    83,391Payroll
      and benefits
                                    
                                    
                                    67,545
                                    
                                    
                                    
                                    73,139
                                    
                                    
                                    
                                    68,806Depreciation
      and amortization
                                    
                                    
                                    11,947
                                    
                                    
                                    
                                    13,007
                                    
                                    
                                    
                                    11,359Other
      operating expenses
                                    
                                    
                                    90,074
                                    
                                    
                                    
                                    106,304
                                    
                                    
                                    
                                    100,759Goodwill
      and domestic trademarks impairment
                                    
                                    
                                    -
                                    
                                    
                                    
                                    42,093
                                    
                                    
                                    
                                    17,430Total
      operating expenses
                                    
                                    
                                    250,799
                                    
                                    
                                    
                                    323,985
                                    
                                    
                                    
                                    281,745OPERATING
      INCOME (LOSS)
                                    
                                    
                                    28,226
                                    
                                    
                                    
                                    (25,055
                                    )
                                    
                                    
                                    (4,051
                                    )INTEREST
      EXPENSE--Net of interest incomeof
      $384, $260 and $9 for the years endedDecember
      26, 2007, December 31, 2008and
      December 30, 2009 respectively
                                    
                                    
                                    29,167
                                    
                                    
                                    
                                    26,003
                                    
                                    
                                    
                                    32,590OTHER
      EXPENSE
                                    
                                    
                                    -
                                    
                                    
                                    
                                    2,043
                                    
                                    
                                    
                                    443OTHER
      INCOME
                                    
                                    
                                    -
                                    
                                    
                                    
                                    (1,570
                                    )
                                    
                                    
                                    (452
                                    )LOSS
      BEFORE PROVISION FORINCOME
      TAXES
                                    
                                    
                                    (941
                                    )
                                    
                                    
                                    (51,531
                                    )
                                    
                                    
                                    (36,632
                                    )PROVISION
      (BENEFIT) FOR INCOME TAXES
                                    
                                    
                                    3,093
                                    
                                    
                                    
                                    (12,050
                                    )
                                    
                                    
                                    15,625NET
      LOSS
                                    
                                    $
                                    (4,034
                                    )
                                    
                                    $
                                    (39,481
                                    )
                                    
                                    $
                                    (52,257
                                    )
  4




Our
operating results for 2007, 2008 and 2009 are expressed as a percentage of
restaurant revenue below:




Fiscal
      Years2007
                    
                    
                    2008
                    
                    
                    2009Income
      Statement Data:Restaurant
      revenue
                    
                    
                    100.0
                    %
                    
                    
                    100.0
                    %
                    
                    
                    100.0
                    %Product
      cost
                    
                    
                    31.2
                    
                    
                    
                    32.1
                    
                    
                    
                    32.2Payroll
      and benefits
                    
                    
                    26.0
                    
                    
                    
                    26.3
                    
                    
                    
                    26.6Depreciation
      and amortization
                    
                    
                    4.6
                    
                    
                    
                    4.7
                    
                    
                    
                    4.4Other
      operating expenses
                    
                    
                    34.6
                    
                    
                    
                    38.2
                    
                    
                    
                    38.9Operating
      income (loss)
                    
                    
                    10.9
                    
                    
                    
                    (9.0
                    )
                    
                    
                    (1.6
                    )Interest
      expense
                    
                    
                    11.2
                    
                    
                    
                    9.3
                    
                    
                    
                    12.6Loss
      before income taxes
                    
                    
                    (0.4
                    )
                    
                    
                    (18.5
                    )
                    
                    
                    (14.2
                    )Net
      loss
                    
                    
                    (1.6
                    )
                    
                    
                    (14.2
                    )
                    
                    
                    (20.2
                    )Supplementary
      Income Statement Data:Restaurant
      other operating expense
                    
                    
                    21.6
                    
                    
                    
                    22.6
                    
                    
                    
                    23.9Franchise
      expense
                    
                    
                    1.4
                    
                    
                    
                    1.5
                    
                    
                    
                    1.5General
      and administrative expense (1)
                    
                    
                    11.6
                    
                    
                    
                    14.1
                    
                    
                    
                    13.5Total
      other operating expenses
                    
                    
                    34.6
                    
                    
                    
                    38.2
                    
                    
                    
                    38.9


(1)
            General
      and administrative expenses as a percentage of total operating revenue for
      2007, 2008 and 2009 was 10.8%, 13.1% and 12.6%,
      respectively.





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