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El Pollo Loco, Coco's, Carrows Boost Firm

August 13, 1996|GREG JOHNSON | Greg Johnson covers retail businesses and restaurants for The Times

Spartanburg, S.C.-based Flagstar Companies Inc., which owns the El Pollo Loco, Coco's and Carrows restaurants, reported that the three Irvine-based chains helped to counter weak sales results at some of the company's other restaurant operations during the second quarter ended June 30.

El Pollo Loco has enjoyed "exceptionally strong sales trends," according to Flagstar Chairman and Chief Executive James B. Adamson. "With the recent acquisition of Coco's and Carrows, we have added two outstanding brands to Flagstar's restaurant portfolio, which should generate increased cash flow as we reduce administrative costs and improve efficiencies.

While Adamson sees "great potential for franchise growth," Flagstar will first integrate Coco's and Carrows into its administrative systems and "fine tune" the two chains' marketing and brand strategies.

Sales at El Pollo Loco locations open for more than a year rose by 8.5%, marking the ninth consecutive quarterly increase. Operating income rose to $4.3 million from $3.5 million a year earlier.

The Coco's and Carrows restaurants that were acquired from Irvine-based Family Restaurants Inc. contributed $49.3 million in revenue and $3.9 million in operating profit. Coco's accounted for $1.9 million in operating income while Carrows added $2.0 million in operating profit.

Greg Johnson covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5950 and at greg.johnson@latimes.com

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