El Pollo Loco (LOCO) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 2025 results with total revenue of $123.5M, up from $114.3M in Q4 2024, aided by an extra operating week and positive same-store sales growth despite industry challenges.

• Achieved better-than-expected restaurant-level margins and operational excellence, with adjusted EBITDA increasing to $16.9M from $14.3M.

• Net income rose to $6.5M ($0.22 per diluted share), up from $6M ($0.20 per share) last year.

• System-wide comparable restaurant sales grew 2.1% in Q4 2025, with continued momentum into early 2026.

• Focused on a five-pillar strategy: culinary innovation, marketing, operational excellence, digital capabilities, and disciplined expansion.

Financial highlights

• Company-operated restaurant revenue rose to $102.4M from $95.6M, with $5.3M attributed to the extra week.

• Franchise revenue increased 15.5% to $13M, driven by higher comparable sales, new openings, and the extra week.

• Restaurant contribution margin improved to 17.5% from 16.7% year-over-year.

• Adjusted EBITDA for Q4 was $16.9M, up from $14.3M; adjusted net income was $7.3M ($0.25 per share).

• Cash and cash equivalents at year-end were $6.2M; total debt was $51M after a $20M paydown.

Outlook and guidance

• 2026 guidance: system-wide comparable sales growth of 1%-3%, 18-20 new restaurant openings (3-4 company, 15-16 franchise), capital spending of $37M-$40M, G&A expenses of $52M-$54M, adjusted EBITDA of $66M-$68M, and a 29% effective tax rate.

• 2027-2028 outlook: low single-digit comparable sales growth, mid-single-digit unit growth, high single-digit adjusted EBITDA growth.