El Pollo Loco Holdings, Inc. reported its fourth quarter and full year 2024 financial results on March 6, 2025. Company-operated restaurant revenue for Q4 2024 increased to $95.6 million from $94.0 million in Q4 2023, driven by a 1.6% increase in company-operated comparable restaurant revenue. This comparable sales growth was due to a 9.0% increase in average check size, partially offset by a 6.8% decrease in transactions.
Franchise revenue in Q4 2024 increased by 2.5% to $11.2 million, supported by four new franchise-operated restaurant openings. Restaurant contribution for the quarter was $16.0 million, or 16.7% of company-operated restaurant revenue, an increase from 15.8% in Q4 2023, primarily due to higher menu prices and improved operating efficiencies. For the full year 2024, the restaurant contribution margin reached 17.4%, a 190 basis point improvement year-over-year.
Net income for Q4 2024 was $6.0 million, or $0.20 per diluted share, compared to $4.4 million, or $0.14 per diluted share in Q4 2023. Adjusted net income was $5.9 million, or $0.20 per diluted share, compared to $5.2 million, or $0.16 per diluted share in Q4 2023. As of December 25, 2024, outstanding debt was $71.0 million with $2.5 million in cash and cash equivalents, following a $5.0 million debt paydown.
For the full year 2025, El Pollo Loco provided guidance anticipating commodity inflation between 0.5% and 1.5% and wage inflation for company-owned locations between 3% and 4%. The restaurant contribution margin is projected to be between 17.25% and 17.75%. Menu price increases are planned at approximately 3% for the full year, with targeted increases of 2.5% in Q3 and 2.7% in Q4.
The company plans to open 10 to 11 new system-wide restaurants in 2025, including 9 to 10 franchise units and up to 1 company-owned restaurant, with the majority outside California. Capital spending for 2025 is projected between $31 million and $34 million, largely for 55 to 65 system-wide remodels, with 20 already completed by the end of Q2 2025. General and administrative expenses are guided to be $48 million to $51 million, excluding one-time charges.
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