El Pollo Loco Holdings Earnings Call Transcripts
Fiscal Year 2026
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A comprehensive brand turnaround has driven menu innovation, digital engagement, and operational improvements, resulting in margin expansion and renewed unit growth. Expansion outside California is accelerating, supported by improved unit economics and targeted capital investment.
Fiscal Year 2025
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Q4 2025 saw strong revenue and margin growth, driven by menu innovation, operational efficiency, and disciplined expansion. Guidance for 2026 includes 2%-3% comparable sales growth, 18-20 new openings, and higher capital spending, with continued focus on margin improvement and digital engagement.
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Q3 2025 saw positive system-wide traffic, margin expansion, and strong digital growth, with new menu innovations and remodels driving engagement. Revenue and net income increased year-over-year, and the outlook includes accelerated unit growth and continued margin improvement.
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Q2 2025 saw modest sales improvement and positive system-wide traffic, driven by menu innovation, targeted value offers, and a brand relaunch. Restaurant margins and digital sales improved, while guidance for new openings and margin targets was maintained despite ongoing macro headwinds.
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Q1 2025 revenue grew modestly, but net income and margins declined due to labor inflation and softer transactions. Leadership expects comp trends to improve in the second half, driven by a brand relaunch, menu innovation, and operational improvements. New restaurant openings and remodels are on track for 2025.
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A three-year turnaround is underway, with year one focused on profitability and year two on brand modernization and innovation. New prototypes, menu innovation, and operational improvements are driving growth, while franchise and remodel strategies aim to expand and refresh the system.
Fiscal Year 2024
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Q4 2024 saw revenue and margin growth, driven by higher average checks and new product innovation, despite lower transactions. The company is accelerating remodels, expanding outside California, and expects continued margin improvement in 2025 amid wage and commodity inflation.
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Q3 saw flat revenue but improved margins and a 2.7% rise in system-wide comparable sales. Value promotions and cost savings drove margin expansion, while new prototypes and remodels support future growth. Guidance for 2024 margins was raised, with continued focus on value and innovation.
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System-wide comparable sales rose 4.5% and margins improved to 18.6% year-over-year, despite ongoing consumer softness and wage inflation. Menu innovation, value focus, and operational improvements drove results, with new unit build costs reduced and share repurchases executed.