El Pollo Loco (LOCO) reported a strong first quarter for 2026, with total revenue rising to $126.2 million, driven by a 7.6% increase in company-operated restaurant revenue and contributions from new store openings. The company achieved a system-wide same-store sales growth of 5.8%, with notable performance from its Baja Double Tostadas, which significantly enhanced customer engagement and sales mix. Adjusted EBITDA also improved to $18.2 million, prompting the company to raise its full-year guidance for both comparable sales and adjusted EBITDA.
This performance underscores El Pollo Loco’s effective menu innovation and disciplined cost management strategies, which have resulted in a restaurant-level margin expansion of 320 basis points. The company’s focus on digital sales and loyalty programs is paying off, with digital sales accounting for about 28% of total sales and loyalty program participation increasing to 21%.
Looking ahead, El Pollo Loco anticipates continued growth, projecting second-quarter same-store sales growth of 3%-4% and further expansion in franchise units outside California. The emphasis on operational improvements and strategic menu offerings positions the company well to navigate potential consumer spending pressures in the coming months.
Source: fool.com