El Pollo Loco Q4 Revenue Up 8%, Adjusted EBITDA Climbs to $16.9M
El Pollo Loco reported Q4 revenue of $123.5 million, up from $114.3 million a year earlier, with system-wide comparable restaurant sales rising 2.1%, net income of $6.5 million ($0.22/share) and adjusted EBITDA of $16.9 million. The company cut debt to $46.0 million and forecasts 1.0%–3.0% comp sales growth in 2026.
1. Fourth Quarter Financial Results
El Pollo Loco generated $123.5 million in revenue for the fourth quarter of 2025, compared with $114.3 million in Q4 2024, driven by a 2.1% increase in system-wide comparable restaurant sales. Net income rose to $6.5 million, or $0.22 per diluted share, while adjusted EBITDA improved to $16.9 million.
2. Operational Performance and Expenses
Company-operated restaurant revenue climbed to $102.4 million from $95.6 million, with comparable sales up 0.4% on a 2.7% average check increase. Franchise revenue grew 15.5% to $13.0 million, aided by additional quarter weeks and nine new openings. Restaurant contribution margins expanded to 17.5% of company-operated revenue, offsetting higher general and administrative expenses driven by labor, restructuring and transition costs.
3. Balance Sheet Strength and 2026 Outlook
As of March 12, total debt was reduced to $46.0 million after successive paydowns, with $6.2 million in cash on hand. For 2026 the company projects system-wide comp sales growth of 1.0%–3.0%, three to four new company restaurants, 15 to 16 franchised openings, $37 million–$40 million in capital spending and adjusted EBITDA of $66 million–$68 million.