El Pollo Loco (LOCO) Q2 2026 earnings summary

Executive summary

• Systemwide comparable restaurant sales grew 3.9% in Q2 2026, with company-operated sales up 3.0% and franchise sales up 4.5%, driven by higher average check sizes, menu innovation, and digital engagement.

• Total revenue for Q2 2026 was $129.6 million, up from $125.8 million in Q2 2025, with net income rising to $12.8 million ($0.43 per diluted share).

• Digital sales rose 13% year-over-year, now representing 28% of system sales, with loyalty members driving higher frequency and check growth.

• New product launches and national expansion, including entry into Idaho and new restaurant openings, boosted brand relevance and system growth.

• Adjusted EBITDA reached $19.1 million, compared to $18.5 million in Q2 2025.

Financial highlights

• Company-operated restaurant revenue increased 3.7% to $108.1 million, driven by a 4.2% rise in average check size and new openings.

• Franchise revenue decreased 3.8% due to lower IT pass-through revenue, despite a 4.5% increase in comparable franchise sales.

• Restaurant contribution margin improved to 19.5% from 19.1% year-over-year.

• General and administrative expenses fell 47.9% for the quarter, largely due to a $6.3 million legal settlement.

• Cash and cash equivalents stood at $13.3 million, with total debt reduced to $30.0 million as of July 1, 2026.

Outlook and guidance

• Systemwide comparable store sales growth guidance raised to 3.5%-4.5% for 2026.

• Adjusted EBITDA guidance increased to $68-$70 million for the year.

• Capital spending guidance reduced to $33-$37 million, with 18-20 new restaurant openings expected.

• Restaurant-level margin for 2026 expected between 18.25%-18.75%.

• G&A expense expected between $52–$54 million, excluding one-time costs; effective tax rate estimated at 29.0%–29.5%.