Loading...
•
Sep 24
El Pollo Loco Q3 2025 Earnings Report
El Pollo Loco Holdings, Inc. announced financial results for the third quarter ended September 24, 2025, demonstrating progress across various business aspects despite a slight decline in comparable store sales.
Key Takeaways
El Pollo Loco reported a slight increase in total revenue to $121.5 million for Q3 2025, up from $120.4 million in the prior year. Net income rose to $7.4 million, or $0.25 per diluted share, compared to $6.2 million, or $0.21 per diluted share, in Q3 2024. The company achieved margin expansion at both the restaurant and corporate levels, driven by operational efficiencies and higher menu prices, and continued unit growth with the opening of its 500th restaurant.
Total revenue increased to $121.5 million in Q3 2025 from $120.4 million in Q3 2024.
Net income grew to $7.4 million ($0.25 per diluted share) in Q3 2025, up from $6.2 million ($0.21 per diluted share) in Q3 2024.
Restaurant contribution margin improved to 18.3% of company-operated restaurant revenue, compared to 16.7% in the prior year.
System-wide comparable restaurant sales decreased by 0.8%, while company-operated comparable restaurant sales decreased by 1.1%.
El Pollo Loco
El Pollo Loco
El Pollo Loco Revenue by Segment
Revenue by Segment
Company-operated restaurants Revenue
CapyFin.comFranchise Revenue
CapyFin.comFranchise advertising fee Revenue
CapyFin.com Forward Guidance
El Pollo Loco expects to open at least ten system-wide restaurants in 2025, with capital spending between $28.0 million and $30.0 million. General and administrative expenses are projected to be between $47.5 million and $49.5 million, excluding one-time costs, and the estimated effective income tax rate is 29.0% – 29.25%.
Positive Outlook
- Opening of at least ten system-wide restaurants, indicating continued expansion.
- Building a pipeline to almost double unit openings next year, suggesting strong future growth.
- Ongoing focus on operational excellence to deliver margin expansion.
- Implementation of targeted value and innovations to drive positive traffic growth.
- Commitment to executing against five strategic pillars to enhance brand equity.
Challenges Ahead
- System-wide comparable restaurant sales decreased by 0.8%.
- Company-operated comparable restaurant sales decreased by 1.1%.
- Franchise comparable restaurant sales decreased by 0.6%.
- Increase in general and administrative expenses due to various factors including stock compensation, legal fees, restructuring, and corporate office relocation.
- Capital spending between $28.0 million and $30.0 million, which is a significant investment.