LOCO · El Pollo Loco Holdings, Inc.

El Pollo Loco Holdings, Inc. reported strong first quarter 2026 results, with total revenue increasing 5.9% to $126.2 million, driven by 5.8% system-wide comparable restaurant sales growth. Company-operated comparable sales rose 5.4%, fueled by a 5.7% increase in average check size, partially offset by a 0.3% decline in transactions. Franchise comparable sales grew 6.1%, with both check size (+4.9%) and transactions (+1.1%) contributing. Income from operations improved to $12.2 million from $9.0 million in the prior year, reflecting operational leverage and margin expansion. Restaurant contribution margin expanded 320 basis points to 19.2% of company-operated restaurant revenue, driven by sales leverage, improved operating efficiencies, and higher menu prices. Net income increased to $8.2 million ($0.27 per diluted share) from $5.5 million ($0.19), while adjusted net income reached $8.3 million ($0.28 per diluted share). Adjusted EBITDA grew to $18.2 million from $13.9 million. Management highlighted the success of the Baja Double Tostadas innovation and broad-based operational improvements across customer service, accuracy, and speed. The company raised its full-year 2026 outlook, now expecting system-wide comparable restaurant sales growth of 2.0% to 4.0% and Adjusted EBITDA between $67.5 million and $69.5 million. The balance sheet remains healthy with $44.0 million in debt and $3.9 million in cash as of April 1, 2026, though subsequent borrowing of $2.0 million increased debt to $46.0 million as of May 7, 2026.