# Sales at El Pollo Loco franchises rose as the parent’s franchise revenue fell

> Source: https://qsr.pro/articles/el-pollo-loco-franchise-sales-register-rollout
> Publisher: QSR Pro
> Last content update: 2026-11-08T01:47:07.644475+00:00


In the September quarter, technology revenue and expense tied to the checkout rollout each fell about $600,000 year over year.

Published: 2026-11-08T01:47:07.644475+00:00

By QSR Pro Staff

![Sales at El Pollo Loco franchises rose as the parent’s franchise revenue fell](https://gadzwjyojqpwmxtgebnh.supabase.co/storage/v1/object/public/article-images/daily-20261107-loco-register-06b2ef588cbd.webp)

*AI-generated illustration: QSR.pro, using El Pollo Loco Holdings’ quarterly results.*

Customers spent $195.6 million at El Pollo Loco’s U.S. franchises in the 13 weeks ended September 30, 2026, up 8.8% from a year earlier. Parent company El Pollo Loco Holdings reported $12.48 million in franchise revenue, down 3.0%. [Third-quarter results](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000058/loco-ex99d1.htm)

El Pollo Loco attributed the decline to a prior-year royalty adjustment and the end of its franchise checkout rollout in 2025. In the September quarter, rollout-related technology revenue and expense each fell about $600,000 year over year. [September filing](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000063/loco-20260930x10q.htm)

El Pollo Loco buys checkout equipment from suppliers and resells it to franchisees. When the company transfers the equipment to the operator, it collects payment and records the full sale price as revenue. The cost goes into franchise expenses. [Hardware sales policy](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000063/loco-20260930x10q.htm)

When a customer buys a meal, the franchisee records the sale and El Pollo Loco earns a royalty on the operator’s net sales. Technology support fees also count toward franchise revenue. The parent reports advertising contributions separately. [Revenue accounting policy](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000017/loco-20251231x10k.htm)

Fiscal 2025 ran 53 weeks, one more than 2024. Franchise revenue rose $6.8 million. El Pollo Loco attributed $4.1 million of the increase to technology charges from the register rollout. It recorded $4.1 million in one-time technology expense, mostly for the rollout. [Annual report](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000017/loco-20251231x10k.htm)

In the quarter ended July 1, 2026, El Pollo Loco reported $1.1 million less in rollout-related technology revenue and $1.2 million less in related costs than a year earlier. [Second-quarter filing](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000047/loco-20260701x10q.htm)

On September 30, 320 of 339 U.S. franchises qualified for the chain’s comparable-sales measure. Stores enter the group the first full week after 15 months in business. [Comparable sales definition](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000063/loco-20260930x10q.htm)

Comparable franchise sales rose 5.3% in the September quarter, with 0.9% more transactions and a 4.4% higher average check. The company said those gains and 14 franchise openings since the start of fiscal Q3 2025 partly offset the franchise revenue decline. [Quarterly results](https://www.sec.gov/Archives/edgar/data/1606366/000160636626000058/loco-ex99d1.htm)

Category: [Technology & Innovation](https://qsr.pro/categories/technology)