El Pollo Loco (LOCO) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 was $126.2 million, up 5.9% year-over-year, driven by higher company-operated restaurant sales and increased comparable restaurant sales across both company and franchise locations.

• System-wide comparable restaurant sales increased 5.8%, with company-operated up 5.4% and franchise-operated up 6.1%.

• Net income rose to $8.2 million ($0.27 per diluted share) from $5.5 million ($0.19 per share) year-over-year.

• Restaurant-level margin expanded by 320 basis points to 19.2% from 16.0% year-over-year.

• Digital sales represented 28% of corporate restaurant sales, with loyalty program engagement and average check size both increasing.

Financial highlights

• Company-operated restaurant revenue increased to $105.9 million, up 7.7% year-over-year, driven by a 5.4% rise in comparable sales and new openings.

• Franchise revenue decreased 8.8% due to prior year IT pass-through, but comparable franchise sales rose 6.1%.

• Adjusted EBITDA reached $18.2 million, up from $13.9 million in Q1 2025.

• Cash flow from operations was $13.0 million, up from $4.7 million in the prior year.

• GAAP net income margin improved to 6.5% from 4.6% year-over-year.

Outlook and guidance

• System-wide comparable store sales growth guidance raised to 2%-4% for full year 2026.

• Adjusted EBITDA guidance increased to $67.5-$69.5 million for 2026.

• Restaurant-level margin expected between 18.25%-18.75% for 2026, with Q2 margin guidance of 19%-19.5%.

• Capital spending projected at $37-$40 million; G&A expenses at $52-$54 million.

• Effective tax rate estimated at 29%-29.5%.