Aug 6, 2026, 4:09 PM ETConsumer Cyclical

El Pollo Loco Holdings, Inc. — Second Quarter 2026 Earnings Summary

LOCOEL POLLO LOCO HOLDINGS INC

Financial Performance

Total revenue increased to $129.6 million in the second quarter of 2026, compared to $125.8 million in the second quarter of 2025.
Company-operated restaurant revenue rose to $108.1 million from $104.3 million, driven by a 3.0% increase in comparable restaurant revenue and $1.0 million in sales from three new openings.
Franchise revenue decreased 3.8% to $12.9 million from $13.4 million, primarily due to a $1.1 million reduction in IT pass-through revenue following the completion of the new POS system rollout.
System-wide comparable restaurant sales increased by 3.9% year-over-year.
Income from operations improved to $18.7 million from $11.3 million.
Restaurant contribution reached $21.1 million (19.5% margin), up from $19.9 million (19.1% margin).
Net income was $12.8 million ($0.43 per diluted share), compared to $7.1 million ($0.24 per diluted share) in the prior year period.
Adjusted net income was $8.9 million ($0.30 per diluted share), compared to $8.2 million ($0.28 per diluted share).
Adjusted EBITDA was $19.1 million, compared to $18.5 million.
General and administrative expenses decreased 47.9% to $7.1 million, largely due to a $6.3 million legal settlement received net of expenses.
Outstanding debt balance was $30.0 million as of July 1, 2026, with $13.3 million in cash and cash equivalents.

Raised full-year 2026 system-wide comparable restaurant sales growth guidance to 3.5% to 4.5%.
Raised full-year 2026 Adjusted EBITDA guidance to between $68 million and $70 million.
Reiterated full-year 2026 capital spending guidance between $33 million and $37 million.
Reiterated full-year 2026 guidance to open three to four company-operated restaurants and 15 to 16 franchise-operated restaurants.
Reiterated full-year 2026 General and Administrative expense guidance between $52 million and $54 million, excluding one-time costs.
Reiterated full-year 2026 estimated effective income tax rate between 29.0% and 29.5% before discrete items.

Company-operated comparable sales growth consisted of a 4.2% increase in average check size, partially offset by a 1.1% decrease in transactions.
Franchise comparable sales growth was 4.5%, driven by a 5.3% increase in average check size, partially offset by a 0.8% decrease in transactions.
Restaurant contribution margin expansion was attributed to leverage from comparable store sales growth, improved operating efficiencies, and higher menu prices.
The company opened three company-operated restaurants after the second quarter of 2025 and 11 franchise-operated restaurants during or subsequent to that period.
As of July 1, 2026, there were 489 system-wide comparable restaurants, including 172 company-operated and 317 franchise-operated locations.

The company operates more than 500 company-owned and franchise-operated restaurants across ten U.S. states.
The company maintains eight licensed restaurant locations in the Philippines.
Management highlighted an extensive menu innovation pipeline, operational excellence improvements, and enhanced digital engagement as key drivers for sales and unit development.

Franchise revenue was impacted by the completion of a new Point of Sale system rollout, resulting in a temporary decrease in IT pass-through revenue.
Transactions decreased slightly in both company-operated (1.1%) and franchise (0.8%) comparable bases, offset by higher average check sizes.

CEO Liz Williams expressed pleasure with the continued momentum, citing 3.9% system-wide same-store sales growth and 19.5% restaurant-level margins.
Management remains focused on driving sustainable traffic growth, maintaining margin discipline, and thoughtfully growing the brand across the country.

Subsequent to quarter end, the company paid down an additional $4.0 million on its credit facility, reducing outstanding borrowings to $26.0 million as of July 29, 2026.
On August 4, 2026, the company amended its $150.0 million credit facility, extending the term to August 4, 2031.
The company received a $6.3 million legal settlement, net of legal expenses, during the quarter.
The company has 511 domestic restaurants as of the end of the period.