El Pollo Loco reported third‑quarter 2025 results for the 13‑week period ended September 24, 2025. Company‑operated restaurant revenue fell 0.5% to $100.7 million, while franchise revenue rose 13.5% to $12.9 million, for total revenue of $121.5 million. Net income was $7.4 million, or $0.25 per diluted share, up from $6.2 million ($0.21 per diluted share) a year earlier. Adjusted net income reached $7.8 million, or $0.27 per diluted share, compared with $6.3 million ($0.21 per diluted share) in the same quarter last year.
Restaurant contribution increased to $18.5 million, or 18.3% of company‑operated revenue, up from 16.7% a year ago. The improvement was driven by a 40‑basis‑point decrease in food and paper costs, largely due to menu pricing and commodity deflation, and a 130‑basis‑point reduction in labor expenses. Company‑operated comparable restaurant sales declined 1.1% for the quarter, while system‑wide comparable sales fell 0.8%.
Cash and cash equivalents stood at $10.9 million and debt was $61.0 million. After paying down $6.0 million on its 2022 revolver, outstanding borrowings fell to $55.0 million, strengthening the balance sheet.
The quarter also marked the opening of the 500th El Pollo Loco restaurant, located in Colorado Springs. The milestone signals a return to unit‑growth momentum and supports the company’s expansion strategy.
Management reiterated its 2025 outlook, expecting continued margin expansion and positive traffic growth. The company plans to open 10–11 new system‑wide restaurants in 2025 and is pursuing a potential acceleration in 2026. Digital initiatives, including kiosks and the mobile app, grew to 27% of system sales, up from 20% a year earlier. Remodels of existing restaurants have produced a mid‑single‑digit sales lift on average, and a new “Iconic” prototype is targeting a build‑out cost below $2 million. Management noted headwinds such as immigration policy impacts on traffic but emphasized strong demand in the California market and ongoing operational efficiencies.
El Pollo Loco’s earnings beat analyst expectations for earnings per share, but revenue fell short of the forecasted $123.56 million, reflecting competitive pressures and the modest decline in comparable sales. The company’s focus on cost control, menu pricing, and digital expansion underpins its margin expansion strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.