El Pollo Loco Reports Modest Revenue Growth Amid Challenges

El Pollo LoCo Holdings ( (LOCO) ) has released its Q1 earnings. Here is a breakdown of the information El Pollo LoCo Holdings presented to its investors.

El Pollo Loco Holdings, Inc., a leading fire-grilled chicken restaurant chain, operates over 495 locations across the United States and internationally, known for its Mexican-inspired menu offerings. In its first quarter of 2025, El Pollo Loco reported a slight increase in total revenue to $119.2 million, up from $116.2 million the previous year, despite a 0.6% decrease in system-wide comparable restaurant sales. The company’s net income stood at $5.5 million, maintaining the same earnings per share as the prior year, while adjusted EBITDA decreased to $13.9 million from $15.7 million. Key factors impacting the company’s performance included increased labor costs due to a minimum wage hike in California and higher operating expenses, partially offset by increased menu prices and improved operational efficiencies. Franchise revenue saw a notable increase of 16.2%, driven by new restaurant openings and the rollout of a new Point of Sale system. Looking ahead, El Pollo Loco plans to open up to 11 new restaurants in 2025 and focus on executing initiatives to drive brand growth, despite the challenges posed by a dynamic consumer environment.