El Pollo Loco Jumps to 52-Week High After Positive Same-Store Sales and Strong Q4 Results

El Pollo Loco Gains Momentum After Earnings

El Pollo Loco Holdings (LOCO) saw its stock rally sharply following its fourth-quarter earnings report, with shares climbing to a new 52-week high.

The restaurant chain reported stronger sales, improved margins, and positive comparable restaurant growth, suggesting recent menu and operational initiatives are beginning to gain traction.

Investor reaction reflected growing confidence that the company’s strategy is translating into stronger performance across its restaurant network.

Key Points

• El Pollo Loco reported fourth-quarter revenue of $123.5 million, up from $114.3 million a year earlier.
• Comparable restaurant sales turned positive, including a 0.4% increase at company-operated locations and 3.2% growth at franchised restaurants.
• Improved margins and menu innovation helped lift investor sentiment and push LOCO stock to a 52-week high.

El Pollo Loco Reports Revenue Growth and Higher Profitability

El Pollo Loco (LOCO) reported fourth-quarter revenue of $123.5 million, compared with $114.3 million in the same period a year earlier.

Revenue from company-operated restaurants rose 7.1% to $102.4 million. The company attributed the increase to positive comparable sales and an additional operating week during the quarter.

The chain also posted GAAP net income of $6.5 million, or $0.22 per diluted share, compared with $6 million, or $0.20 per share, in the prior year period.

Adjusted EBITDA rose to $16.9 million from $14.3 million a year earlier.

Restaurant-level profitability also improved. Restaurant contribution margin increased to 17.5%, up from 16.7% in the previous year.

What Drove the Improvement in Sales?

Sales growth was supported by menu innovation, value promotions, and increased digital engagement.

Recent menu launches, including the Double Chicken Street Corn and Queso Crunch Double Chicken Burrito Bowl, exceeded expectations and were added permanently to the menu.

The company also introduced value-focused offerings such as a $29.99 “Fam Feast” meal bundle and new protein-focused menu items.

Digital engagement continued to grow as well. Revenue from the company’s loyalty program increased more than 20% year over year, supported by app-based promotions and targeted offers.

Despite higher average check sizes, transactions declined during the quarter, highlighting the company’s ongoing focus on driving customer traffic.

How Is the Restaurant Chain Expanding?

El Pollo Loco is continuing to invest in restaurant expansion and remodeling efforts.

The company opened nine new restaurants in 2025 and plans to open between 18 and 20 new locations in 2026.

Management also completed 69 restaurant remodels in 2025, including both company-operated and franchised locations.

Early openings in Washington and New Mexico reportedly exceeded expectations, demonstrating strong demand in newer markets.

Looking ahead, the company expects system-wide comparable restaurant sales growth of 2% to 3% in 2026.

What It Means for Investors

The latest results highlight improving operational momentum at El Pollo Loco.

Positive comparable sales growth and stronger restaurant-level margins indicate that recent menu changes and value-focused promotions are resonating with customers.

The company is also investing in technology and digital engagement, including upgrades to its point-of-sale systems and expansion of its loyalty program.

At the same time, management noted that maintaining traffic growth remains a priority, particularly as consumers remain focused on value when dining out.

Conclusion

El Pollo Loco delivered stronger fourth-quarter results, including revenue growth, improving margins, and a return to positive comparable restaurant sales.

The combination of menu innovation, digital engagement, and expansion into new markets appears to be strengthening investor confidence in the brand’s turnaround strategy.

As the company continues opening new restaurants and expanding its menu offerings, investors will be watching whether these initiatives sustain sales momentum in the coming year.

FAQs

Why did El Pollo Loco stock rise?

El Pollo Loco shares rose after the company reported improved fourth-quarter results, positive comparable restaurant sales, and higher restaurant-level margins.

What were El Pollo Loco’s latest quarterly results?

The company reported revenue of $123.5 million and net income of $6.5 million, or $0.22 per share, for the fourth quarter.

Did same-store sales grow at El Pollo Loco?

Yes. Comparable sales increased 0.4% at company-operated restaurants and 3.2% at franchised locations during the quarter.

What new menu items helped drive sales?

Menu items such as the Double Chicken Street Corn and Queso Crunch Double Chicken Burrito Bowl exceeded expectations and became permanent menu offerings.

How many restaurants does El Pollo Loco plan to open?

The company plans to open between 18 and 20 new restaurants in 2026.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

Explore Research with Stock Investor

For readers evaluating long-term market opportunities, Stock Investor maintains a curated watchlist of companies selected for ongoing relevance and research focus. These names may not be referenced in this article but are tracked to support disciplined analysis and informed decision-making.

Join the SharperTrades Community

SharperTrades offers additional ways to follow markets more closely, including the Trading Room, where members discuss market developments and review price action in real time, as well as Swing Trade Alerts, and Option Income Alert, which provide curated ideas with educational context.

Learn More in the SharperTrades Academy

If you value the clear, explanatory approach of Market Brief, explore the SharperTrades Academy, where we publish in-depth educational content and self-paced programs covering technical analysis, options, and risk management to help traders and investors better interpret market behavior.

Track Market Participation with DarkOption Flow

For deeper insight into how markets behave during major events, DarkOption Flow provides tools designed to monitor market participation and activity. It can be used alongside price action analysis and market sentiment analysis, particularly during periods of elevated volatility.

Risk Disclosure

All content is provided for educational purposes only and does not constitute investment advice. Trading involves risk, and past performance is not indicative of future results. Please review our full Risk Disclosure for additional information.