El Pollo Loco Holdings, Inc. reported fourth‑quarter 2025 results that included total revenue of $123.5 million, up 8.1% year‑over‑year, and an adjusted earnings per share of $0.25, beating the consensus estimate of $0.21 by $0.04 or 19%. The company‑operated restaurant revenue was $102.4 million, a 0.4% increase in comparable sales, while franchise revenue rose 15.5% to $13.0 million.
The quarter’s revenue mix reflected a 2.1% rise in system‑wide comparable restaurant sales and a contribution from a 14th operating week that added $5.3 million in revenue and $770,000 to adjusted EBITDA. Company‑operated average check size grew 2.7% even as transactions fell 2.3%, underscoring a shift toward higher‑priced items amid a modest decline in foot traffic.
Operating income climbed to $10.3 million from $9.0 million, and restaurant contribution reached $17.9 million, with the contribution margin expanding to 17.5% from 16.7%—an increase of 0.8 percentage points. Net income was $6.5 million, or $0.22 per diluted share, up 8.3% from $6.0 million and $0.20 per share the prior year, while adjusted net income rose 23.7% to $7.3 million, or $0.25 per diluted share, a 25% increase in adjusted EPS.
The company’s debt balance stood at $51.0 million with $6.2 million in cash and cash equivalents as of December 31, 2025. Management guided for 2026 system‑wide comparable sales growth of 1.0%–3.0% and adjusted EBITDA of $66–$68 million. "The restaurants we've opened since 2024 are averaging over $2 million annually," CEO Liz Williams said. "With the momentum we've built ... we believe we are well positioned to become the nation's favorite fire‑grilled chicken restaurant." "During the quarter, we not only delivered positive same‑store sales growth but also achieved growth in restaurant‑level margins. As we look ahead, our priority for 2026 is clear: to drive sustainable traffic growth across our system and thoughtfully accelerate new restaurant growth in new markets," she added.
Investors reacted cautiously to the results, noting that while the EPS beat was driven by disciplined cost control and margin expansion, the revenue miss and declining transactions in company‑operated restaurants raised concerns about traffic growth. The company’s guidance signals confidence in a modest sales trajectory for 2026, but the headwinds of lower foot traffic and potential cost pressures remain a focus for management and analysts alike.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.