El Pollo Loco’s Q4 2025 revenue and earnings rise

El Pollo Loco reported higher fourth-quarter revenue and earnings on March 12, 2026. Revenue reached $123.5 million, compared with $114.3 million a year earlier, as the company outlined plans for 18 to 20 restaurant openings in 2026.

The quarter ended December 31, 2025, contained 14 weeks, versus 13 in the prior-year period. The extra week contributed $5.3 million to company-operated restaurant revenue. Net income rose to $6.5 million, or $0.22 per diluted share, from $6.0 million; adjusted earnings were $0.25 per diluted share.

Systemwide comparable sales increased 2.1%, with company restaurants up 0.4% and franchise restaurants up 3.3%.

For the 53-week fiscal year, consolidated revenue totaled $490.046 million. That comprised $405.817 million from company-operated restaurants, $52.389 million in franchise revenue and $31.840 million in franchise advertising fees.

Annual results and investment plans#

For fiscal 2025, net income was $26.486 million, compared with $25.684 million for fiscal 2024. The previous fiscal year contained 52 weeks.

The 2025 annual report, signed March 13, described a 2026 target of 25 to 35 company-operated remodels and 30 to 40 franchise remodels. Together, those ranges total 55 to 75 restaurants. During 2025, the company completed 17 remodels and franchisees completed 52.

The report also outlined work to reduce construction costs through changes to fixtures, equipment, layout, materials and design standards. It said savings identified through work begun in late 2024 had entered new builds in 2025. At the report date, the complete next-generation prototype was expected to open in 2026.

Franchisees were expected to lead future development, supported by company openings. The chain finished 2025 with 175 company-operated and 328 franchised U.S. restaurants, after nine openings and four franchise closures during the year.

The report recorded $1.125 billion in systemwide restaurant sales for 2025, combining company-operated restaurant revenue with $719.588 million in sales at franchised restaurants. This measure counts restaurant sales across both ownership groups, while consolidated revenue includes the fees and other revenues received from franchisees.

August outlook update#

In its August 6 update, El Pollo Loco raised its 2026 systemwide comparable-sales outlook to 3.5% to 4.5% and adjusted EBITDA outlook to $68 million to $70 million. Its capital-spending forecast became $33 million to $37 million.

The March forecasts had been 1% to 3% comparable-sales growth, $66 million to $68 million in adjusted EBITDA and $37 million to $40 million in capital spending.

Adjusted EBITDA is a non-GAAP earnings measure excluding interest, taxes, depreciation, amortization and specified adjustments. August guidance retained three to four company openings and 15 to 16 franchise openings.

For the second quarter ended July 1, revenue reached $129.6 million versus $125.8 million a year earlier. Net income increased to $12.8 million from $7.1 million. The quarter included $6.3 million received from a legal settlement, net of legal expenses, which reduced general and administrative expenses.

Adjusted net income for the second quarter was $8.9 million, compared with $8.2 million a year earlier.

Outstanding borrowings were $30 million at July 1. The company subsequently paid down another $4 million and, on August 4, extended its $150 million credit facility’s term to August 4, 2031.