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Jun 25, 2025
El Pollo Loco Q2 2025 Earnings Report
El Pollo Loco Holdings, Inc. announced its financial results for the second quarter ended June 25, 2025, reporting an increase in total revenue and adjusted net income, despite a slight decrease in system-wide comparable restaurant sales.
Key Takeaways
El Pollo Loco reported a total revenue of $125.8 million for Q2 2025, an increase from $122.2 million in the prior year. Net income was $7.1 million, or $0.24 per diluted share, while adjusted net income rose to $8.2 million, or $0.28 per diluted share. The company saw modest sequential improvement in overall sales and achieved positive system-wide traffic growth, driven by menu innovations and brand re-launch investments.
Total revenue increased to $125.8 million in Q2 2025, up from $122.2 million in Q2 2024.
Adjusted net income grew to $8.2 million ($0.28 per diluted share) in Q2 2025, compared to $7.8 million ($0.26 per diluted share) in Q2 2024.
System-wide comparable restaurant sales decreased by 0.3%, but the company noted modest sequential improvement and a return to positive system-wide traffic growth.
Restaurant contribution margin improved to 19.1% of company-operated restaurant revenue, up from 18.6% in the prior year, due to higher menu prices and better operating efficiencies.
Revenue by Segment
Forward Guidance
El Pollo Loco provided expectations for the remainder of 2025, focusing on new restaurant openings, capital spending, and general and administrative expenses.
Positive Outlook
- Expected opening of ten to eleven system-wide restaurants, including nine to ten franchised restaurants.
- Up to one new company-operated restaurant opening.
- Continued focus on strategic investments in brand re-launch and menu innovations.
- Building a strong foundation for long-term sustainable growth.
- Growing development pipeline for further acceleration in 2026, positioning for national expansion.
Challenges Ahead
- Capital spending projected between $31.0 million and $34.0 million.
- General and administrative expenses expected to be between $48.0 million and $51.0 million, excluding one-time costs.
- Estimated effective income tax rate of 29.0% to 29.5% before discrete items.
Historical Earnings Impact
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