Nov 5, 2026, 4:09 PM ETConsumer Cyclical

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

LOCOEL POLLO LOCO HOLDINGS INC

Financial Performance

Total revenue increased to $126.3 million from $121.5 million in the prior year quarter.
Company-operated restaurant revenue rose to $105.4 million from $100.7 million, driven by a 4.4% increase in comparable restaurant revenue.
System-wide comparable restaurant sales increased 5.0% year-over-year.
Income from operations decreased to $10.2 million from $11.5 million.
Restaurant contribution was $19.4 million (18.4% margin) compared to $18.5 million (18.3% margin).
Net income declined to $6.9 million ($0.23 per diluted share) from $7.4 million ($0.25 per diluted share).
Adjusted net income was $7.3 million ($0.24 per diluted share) compared to $7.8 million ($0.27 per diluted share).
Adjusted EBITDA was $17.1 million compared to $17.4 million.
General and administrative expenses increased $1.6 million (13.1%) to $13.97 million, primarily due to higher incentive compensation, stock compensation, and restructuring costs.
Outstanding debt balance was $23.0 million as of September 30, 2026, down from $51.0 million at year-end 2025, following a net paydown of $28.0 million.
Cash and cash equivalents were $3.4 million as of September 30, 2026.

Fiscal 2026 system-wide comparable restaurant sales growth is expected to be approximately 4.5%.
Fiscal 2026 G&A expense is projected between $52.5 million and $53.5 million, excluding one-time costs.
Fiscal 2026 capital spending is projected between $33 million and $35 million.
Fiscal 2026 Adjusted EBITDA is reiterated between $68 million and $70 million.
Fiscal 2026 estimated effective income tax rate is projected between 29.0% and 29.5% before discrete items.
Fiscal 2026 store openings are reiterated at three to four company-operated restaurants and 15 to 16 franchise-operated restaurants.
2027 outlook includes opening 25 to 30 new restaurants.

Franchise revenue decreased 3.0% to $12.5 million, impacted by a $0.6 million reduction in IT pass-through revenue from the new POS system rollout and a prior year royalty rate true-up.
Franchise comparable restaurant sales increased 5.3%, driven by a 4.4% increase in average check size and a 0.9% increase in transactions.
Company-operated comparable sales growth consisted of a 4.0% increase in average check size and a 0.3% increase in transactions.
The company opened three company-operated restaurants after the third quarter of 2025.
Fourteen franchise-operated restaurants were opened during or subsequent to the third quarter of 2025.
One company-operated restaurant was transferred to a franchisee in the second quarter of 2026.
Restaurant contribution margin improvement was attributed to sales leverage and higher menu prices, partially offset by higher utilities, repairs, maintenance, and third-party delivery fees.

The company operates 515 domestic restaurants (176 company-operated, 339 franchise-operated) as of September 30, 2026.
There are 491 system-wide comparable restaurants, including 171 company-operated and 320 franchise-operated locations.
The brand maintains a presence in ten U.S. states and eight licensed locations in the Philippines.
Management highlighted positive traffic growth and four consecutive quarters of positive comparable sales.

Rising costs for utilities, repairs, maintenance, and third-party delivery services have pressured margins.
Future results are subject to risks including global economic conditions, trade policies, consumer preferences, labor availability, and supply chain disruptions.
Risks include potential negative publicity, food safety concerns, cybersecurity breaches, and the success of marketing programs.
The company faces risks related to lease renewals, franchisee economic vulnerability, and shareholder activism expenses.

CEO Liz Williams expressed enthusiasm, stating the company delivered "another strong quarter" with positive traffic and sales growth.
Management credited marketing, innovation, quality, value, and improved service for the better guest experience.
The stated strategic goals are to build lasting traffic, protect margin discipline and unit economics, and expand into new communities.
CFO Ira Fils and CEO Liz Williams are scheduled to host a conference call to discuss results.

Subsequent to quarter end, the company borrowed an additional $4.0 million on its $150.0 million credit facility, raising outstanding borrowings to $27.0 million as of November 4, 2026.
The company received a $6.3 million legal settlement net of legal expenses during the thirty-nine weeks ended September 30, 2026.
The company recorded $0.2 million in non-cash impairment charges related to one restaurant in Nevada during the first three quarters of 2026.
Shareholder activism and related matter expenses decreased by $0.2 million compared to the prior year period.
The company is implementing a new ERP system, incurring $261,000 in implementation costs for the quarter.