El Pollo Loco Reports $125.8 Million Revenue, Net Income Declines in Latest Quarter

El Pollo Loco Holdings, Inc. reported a total revenue of $125.8 million for the thirteen weeks ended June 25, 2025, marking a 3% increase from $122.2 million in the same period last year. The company's net income for the quarter was $7.1 million, or $0.24 per diluted share, compared to $7.6 million, or $0.25 per diluted share, in the prior year. For the first half of the fiscal year, total revenue reached $245.0 million, up from $238.3 million, while net income decreased to $12.6 million from $13.5 million year-over-year.

The company experienced a slight decline in comparable restaurant sales, with a decrease of 0.3% for the quarter and 0.4% for the year-to-date period. This was attributed to a 1.5% increase in average check size, offset by a 0.3% decrease in transactions for the quarter. The company-operated restaurant revenue increased by 2% to $104.3 million, driven by the opening of two new restaurants and a modest increase in comparable sales. Franchise revenue also saw a significant rise, increasing by 14.8% to $13.4 million for the quarter, largely due to IT pass-through revenue related to a new Point of Sale system rollout.

Operationally, El Pollo Loco operated 174 company-owned and 325 franchised restaurants as of June 25, 2025, with a total of 499 locations across seven states. The company completed the acquisition of one restaurant from an existing franchisee during the first half of the fiscal year. The company also reported a total cash and cash equivalents balance of $9.0 million, up from $2.5 million at the end of the previous fiscal year, reflecting improved liquidity.

In terms of expenses, total operating expenses increased by 4.3% to $114.5 million for the quarter, driven by higher occupancy and other operating expenses, which rose by 8.5%. Labor and related expenses decreased by 2.2% due to improved efficiencies, although the company anticipates ongoing cost pressures from wage increases mandated by California's new labor laws. The company’s general and administrative expenses also rose by 14.8% due to increased stock compensation and legal costs.

Looking ahead, El Pollo Loco aims to continue its expansion strategy, focusing on increasing customer frequency and enhancing its digital presence. The company plans to remodel 55-65 restaurants in the remainder of fiscal 2025 and is evaluating the impact of ongoing inflationary pressures on its operations. Despite the challenges, the company remains optimistic about its growth trajectory and competitive positioning in the fast-casual dining segment.