El Pollo Loco Holdings, Inc. reported a total revenue of $129.6 million for the thirteen weeks ended July 1, 2026, marking a 3.0% increase from $125.8 million in the same period last year. The company's net income for the quarter was $12.8 million, or $0.43 per diluted share, compared to $7.1 million, or $0.24 per diluted share, in the prior year, reflecting an 80.2% increase in profitability. For the twenty-six weeks ended July 1, 2026, total revenue reached $255.8 million, up 4.4% from $245.0 million in the previous year, with net income increasing to $21.0 million from $12.6 million.
The company experienced notable changes in its operational metrics, with company-operated restaurant revenue increasing by 3.7% to $108.1 million for the quarter, driven by a 3.0% rise in comparable restaurant sales. Franchise revenue, however, decreased by 3.8% to $12.9 million, primarily due to a decline in IT pass-through revenue related to the rollout of a new Point of Sale system. The company also reported a 5.3% increase in franchise advertising fee revenue, contributing to overall revenue growth.
In terms of strategic developments, El Pollo Loco opened two new company-operated restaurants and six franchise locations during the first half of 2026, bringing the total to 511 locations across ten states. The company has also focused on remodeling efforts, completing 24 remodels in the same period. The Loco Rewards loyalty program continues to expand, with over 5.6 million members as of July 1, 2026, aimed at increasing customer engagement and visit frequency.
Operationally, the company reported a significant increase in cash flow from operating activities, which rose to $44.7 million for the twenty-six weeks ended July 1, 2026, compared to $18.9 million in the prior year. This increase was attributed to higher net income and favorable changes in operating assets and liabilities. The company’s total liabilities decreased to $301.7 million from $315.6 million, while stockholders' equity increased to $317.0 million, reflecting a strong financial position.
Looking ahead, El Pollo Loco aims to continue its expansion and enhance its competitive positioning through strategies focused on brand development, hospitality, and digital engagement. The company anticipates ongoing challenges from inflationary pressures and regulatory compliance costs but remains optimistic about its ability to offset these through menu price adjustments and operational efficiencies. The company has also amended its credit facility, extending the term to August 4, 2031, which will provide additional financial flexibility moving forward.
About El Pollo Loco Holdings, Inc.
El Pollo Loco is a fast-service restaurant chain specializing in fire-grilled citrus-marinated chicken and Mexican-inspired meals. Its menu features healthier, flavorful options made with fresh ingredients, served in contemporary environments. Operating primarily in the U.S. Southwest and Philippines, the company leverages franchising, digital ordering, and a strong brand to deliver convenient, high-quality food to a broad customer base.
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