El Pollo Loco reports strong 2025 growth with 2026 expansion plans

El Pollo Loco has reported steady growth in 2025, with higher revenues and improved profits. The fast-food chain also announced plans to expand further in 2026, targeting 18 to 20 new restaurant openings. Financial results show gains in both sales and operational efficiency.

The company's total revenue for the fourth quarter of 2025 reached $123.5 million, up by $9.2 million from the same period last year. Franchise revenue alone climbed 15.5% to $13.0 million, driven by a 3.2% rise in comparable sales.

For the full year, company-operated restaurant revenue grew by 7.1%, hitting $102.4 million. Comparable store sales inched up by 0.1%, with a 0.7% increase in average spending per customer partly offset by a 0.6% decline in transactions. Labor costs also fell, dropping 90 basis points to 31.5% of sales due to better efficiency and menu price adjustments. Adjusted EBITDA improved to $16.9 million, compared to $14.3 million in the previous year. GAAP net income rose slightly to $6.5 million, or $0.22 per diluted share, up from $6.0 million, or $0.20 per share, in 2024. The restaurant contribution margin also strengthened, reaching 17.5% in the quarter—an increase from 16.7% a year earlier. Looking ahead, management expects systemwide comparable store sales to grow by 2% to 3% in 2026. All current locations remain within the US, with no international branches reported by the end of 2025.

El Pollo Loco's expansion plans and financial gains suggest a positive outlook for 2026. The chain's focus on efficiency and sales growth has led to higher margins and profits. With new openings on the horizon, the company aims to build on its recent performance.