El Pollo Loco Holdings, Inc. Announces Second Quarter 2026 Financial Results
El Pollo Loco Holdings, Inc. (LOCO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 El Pollo Loco Holdings, Inc. Announces Second Quarter 2026 Financial Results Delivers 3.9% System-wide Comparable Restaurant Sales Raises 2026 Full-Year Outlook COSTA MESA, CA – August 6, 2026 – El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) (the “Company”) today an
How this was made
The 30-second read
Why it matters
The filing contains fresh, tradable inputs: Q2 operating and net income improvement, system-wide comparable sales growth, and updated full-year guidance ranges for comparable sales and adjusted EBITDA, alongside balance-sheet and credit-facility changes.
Market read
Traders can update models for 2026 traffic and profitability using the disclosed system-wide comparable sales growth and adjusted EBITDA range, while also reassessing financing risk after the revolver amendment.
What to watch
G&A benefited from a legal settlement net of expenses; traders may discount the sustainability of margin improvement and watch for normalization in subsequent quarters.
El Pollo Loco Holdings, Inc. Announces Second Quarter 2026 Financial Results Delivers 3.9% System-wide Comparable Restaurant Sales Raises 2026 Full-Year Outlook
System-wide comparable restaurant sales increased by 3.9%, company-operated revenue increased to $108.1 million, restaurant contribution margin expanded to 19.5%, and adjusted EBITDA increased to $19.1 million. GAAP income from operations and net income were materially aided by $6.3 million received from a legal settlement, net of legal expenses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $129.6M | – | – |
| System-wide comparable restaurant salesnon-GAAP | 3.9% | – | increased by 3.9% |
| Company-operated comparable restaurant salesother | 3.0% | – | increase of $3.1 million, or 3.0% |
| Company-operated restaurant revenueGAAP | $108.1M | – | – |
| Franchise revenueGAAP | $12.9M | – | decreased by 3.8% |
| Franchise comparable restaurant salesother | 4.5% | – | increase of 4.5% |
| Income from operationsGAAP | $18.7M | – | – |
| Restaurant contributionnon-GAAP | $21.1M | – | – |
| Restaurant contribution marginnon-GAAP | 19.5% of company-operated restaurant revenue | – | – |
| General and administrative expenses decreaseGAAP | $6.5M | – | 47.9% |
| Net incomeGAAP | $12.8M | – | – |
| Net income per diluted shareGAAP | $0.43 per diluted share | – | – |
| Adjusted net incomenon-GAAP | $8.9M | – | – |
| Adjusted net income per diluted sharenon-GAAP | $0.30 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $19.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Company-operated restaurantsThe increase was primarily due to an increase in company-operated comparable restaurant revenue of $3.1 million, or 3.0%, as well as $1.0 million of additional sales from the opening of three restaurants after the second quarter of 2025. | $108.1M | – | increase of $3.1 million, or 3.0% |
| FranchiseThe decrease was primarily due to a $1.1 million decrease in franchisee information technology pass-through revenue related to the franchise rollout of the new Point of Sale system completed in 2025, partially offset by franchise revenue related to 11 franchise-operated restaurant openings during or subsequent to the second quarter of 2025 and a franchise comparable restaurant sales increase of 4.5%. | $12.9M | – | decreased by 3.8% |
fiscal year 2026 outlook
- Operating expensesG&A expense between $52 million and $54 million, excluding one-time costs.
- Tax rateEstimated effective income tax rate of 29.0% to 29.5% before discrete items.
- NoteSystem-wide comparable restaurant sales growth of 3.5% to 4.5%.
- NoteAdjusted EBITDA between $68 million and $70 million.
- NoteCapital spending between $33 million and $37 million.
- NoteThe opening of three to four company-operated restaurants and 15 to 16 franchise-operated restaurants.
What drove it
- Company-operated comparable restaurant sales consisted of a 4.2% increase in average check size, partially offset by a 1.1% decrease in transactions.
- Franchise comparable restaurant sales consisted of a 5.3% increase in average check size, partially offset by a 0.8% decrease in transactions.
- The increase in restaurant contribution margin was largely due to leverage on the 3.0% comparable store sales increase, improved operating efficiencies, and higher menu prices.
- General and administrative expenses decreased primarily due to $6.3 million received from a legal settlement, net of legal expenses, in the current year.
Concerns
- Company-operated transactions decreased by 1.1%, partially offsetting the 4.2% increase in average check size.
- Franchise transactions decreased by 0.8%, partially offsetting the 5.3% increase in average check size.
- Franchise revenue decreased by 3.8%, primarily due to a $1.1 million decrease in franchisee information technology pass-through revenue.
- Income from operations and GAAP net income included the impact of $6.3 million received from a legal settlement, net of legal expenses.
What to watch
- System-wide comparable restaurant sales growth of 3.5% to 4.5% for fiscal year 2026.
- Adjusted EBITDA between $68 million and $70 million for fiscal year 2026.
- Capital spending between $33 million and $37 million.
- The opening of three to four company-operated restaurants and 15 to 16 franchise-operated restaurants.
- G&A expense between $52 million and $54 million, excluding one-time costs.
- Whether transaction trends improve from the reported 1.1% decrease at company-operated restaurants and 0.8% decrease at franchise-operated restaurants.
Balance sheet and cash flow
- As of July 1, 2026, after net pay down of $21.0 million on the five-year senior-secured revolving credit facility during the preceding twenty-six weeks, the Company’s outstanding debt balance was $30.0 million with $13.3 million in cash and cash equivalents.
- Subsequent to quarter end, the Company paid down an additional $4.0 million on its $150.0 million credit facility, resulting in outstanding borrowings of $26.0 million as of July 29, 2026.
- On August 4, 2026, the Company amended its $150.0 million credit facility, extending the term to August 4, 2031.
Analysis
El Pollo Loco reported a solid second quarter ended July 1, 2026. Total revenue was $129.6 million compared to $125.8 million, supported by company-operated restaurant revenue of $108.1 million compared to $104.3 million. System-wide comparable restaurant sales increased by 3.9%, while company-operated comparable restaurant sales increased by 3.0% and franchise comparable restaurant sales increased by 4.5%.
The sales growth was driven by check rather than traffic. Company-operated average check size increased by 4.2%, partially offset by a 1.1% decrease in transactions. Franchise average check size increased by 5.3%, partially offset by a 0.8% decrease in transactions. Company-operated restaurant revenue also benefited from $1.0 million of additional sales from the opening of three restaurants after the second quarter of 2025.
Restaurant-level profitability improved, with restaurant contribution of $21.1 million and restaurant contribution margin of 19.5% of company-operated restaurant revenue, compared to $19.9 million and 19.1% of company-operated restaurant revenue. The Company attributed the margin improvement to leverage on comparable store sales, improved operating efficiencies, and higher menu prices. Adjusted EBITDA increased to $19.1 million from $18.5 million, while adjusted net income increased to $8.9 million, or $0.30 per diluted share, from $8.2 million, or $0.28 per diluted share.
GAAP profitability improved more sharply, as income from operations increased to $18.7 million from $11.3 million and net income increased to $12.8 million, or $0.43 per diluted share, from $7.1 million, or $0.24 per diluted share. The reported general and administrative expense decrease included $6.3 million received from a legal settlement, net of legal expenses, which is important in assessing the period's GAAP earnings improvement.
The Company raised its fiscal year 2026 outlook for system-wide comparable restaurant sales growth of 3.5% to 4.5%, adjusted EBITDA between $68 million and $70 million, and capital spending between $33 million and $37 million. It reiterated restaurant opening, G&A expense, and effective income tax rate expectations. The Company also reduced borrowings, reporting $30.0 million of outstanding debt at July 1, 2026 and $26.0 million as of July 29, 2026 after an additional $4.0 million paydown, alongside an August 4, 2026 extension of its credit facility term to August 4, 2031.
Management, verbatim
We are pleased with the continued momentum reflected in our second quarter results, with systemwide same-store sales growth of 3.9% and restaurant-level margins of 19.5%.
Liz Williams, Chief Executive Officer of El Pollo Loco
Our extensive menu innovation pipeline, continued improvement on operational excellence, and enhanced digital engagement are working together to drive increased sales and new unit development.
Liz Williams, Chief Executive Officer of El Pollo Loco
Not in the filing
stated, not guessed- Gross margin
- Operating cash flow
- Free cash flow
- Capital expenditures for the reported quarter
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported operating metrics
- Prior outlook needed to compare actual results with prior guidance
- Total system-wide sales
- Absolute general and administrative expense for the reported quarter and prior-year period
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with El Pollo Loco’s Q2 2026 financial results for the 13-week period ended July 1, 2026, plus updated fiscal 2026 outlook and credit facility updates.
Ticker impact
El Pollo Loco reported Q2 results and raised/updated 2026 outlook, including 3.9% system-wide comparable sales growth and $68M-$70M adjusted EBITDA guidance.
Moderately positive bias for the next few sessions as traders reprice 2026 adjusted EBITDA and traffic assumptions.
The filing discloses multiple decision-relevant datapoints: Q2 revenue, operating income, net income, and updated full-year ranges plus a post-quarter credit facility amendment and paydown that can affect financing risk.
Market effects
Provides a read-through on restaurant traffic and margin discipline for a small-cap restaurant operator, potentially informing sentiment toward similar concepts.
No specific regional demand signal beyond company-wide system metrics.
Primarily US-focused restaurant operations; limited global spillover.
Counterpoint
Franchise revenue declined 3.8% due to lower IT pass-through tied to the new POS rollout, which could mask underlying franchise economics.
Key entities
- public_companyEl Pollo Loco Holdings, Inc.
Nasdaq-listed restaurant operator reporting Q2 2026 results and updating 2026 outlook, including adjusted EBITDA guidance and credit facility amendment.
- debt_instrumentCredit facility (150.0 million revolver)
Amended to extend maturity to August 4, 2031 and reduced borrowings after additional paydown post-quarter.
