El Pollo Loco(NASDAQ) LOCO

El Pollo Loco Holdings, Inc. makes fresh fire-grilled chicken for busy families. The company serves citrus-marinated meals at hundreds of restaurant locations. These offerings provide high-quality food at affordable prices for everyone.

Serving Fire-Grilled Chicken Fast

• Company-Operated Restaurants: Direct management of 169 locations; accounts for 83.7% of revenue during the 26 weeks ended July 1, 2026.
• Franchise-Operated Restaurants: Management of royalty streams and fees from 342 domestic locations; provided 9.7% of revenue during the 26 weeks ended July 1, 2026.
• Advertising Fees: Collections from franchisees to fund brand-wide marketing and promotional programs; accounted for 6.6% of revenue during the 26 weeks ended July 1, 2026.
• Licensed Restaurants: Eight establishments operating in the Philippines under licensing agreements; these do not contribute to system-wide sales figures.

Fresh Strategies for Expansion

• Launched a comprehensive brand refresh in 2025 that included new restaurant designs, advertising campaigns, and a focus on hospitality.
• Opened eight new restaurant locations across states including California, Colorado, Arizona, and Texas during the 26 weeks ended July 1, 2026.
• Completed 24 restaurant remodels in the first 26 weeks of 2026, with average investment costs of approximately $400,000 per location.
• Reached 5.6 million Loco Rewards loyalty program members by July 1, 2026, up from 5.1 million members at the end of 2025.

Distinctive Products and Regional Focus

El Pollo Loco differentiates itself by fire-grilling citrus-marinated chicken and preparing fresh salsas and dressings daily. The company maintains a high geographic concentration in California, which provides strong brand density but makes operations vulnerable to that state's specific labor and packaging regulations.

Recent Financial Performance

• Total revenue reached $255.8 million during the 26 weeks ended July 1, 2026, up 4.4% year over year.
• Net income rose 66.5% year over year to $21.0 million for the 26 weeks ended July 1, 2026, aided by a $6.3 million legal settlement.
• System-wide sales, a non-GAAP measure, grew 7.8% year over year to $599.8 million for the 26-week period ended July 1, 2026.
• General and administrative expenses fell 20.0% year over year to $19.8 million during the 26 weeks ended July 1, 2026.

Bottom Line

El Pollo Loco is evolving into a digital-first brand while expanding its footprint in new and existing markets. The company remains focused on driving unit growth and improving restaurant-level efficiency to navigate rising labor and commodity costs.