Fast food chain El Pollo Loco (NASDAQ: LOCO) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 5.9% year on year to $126.2 million. Its non-GAAP profit of $0.28 per share was 29.6% above analysts’ consensus estimates.
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El Pollo Loco (LOCO) Q1 CY2026 Highlights:
- Revenue: $126.2 million vs analyst estimates of $122.2 million (5.9% year-on-year growth, 3.2% beat)
- Adjusted EPS: $0.28 vs analyst estimates of $0.22 (29.6% beat)
- Adjusted EBITDA: $18.19 million vs analyst estimates of $15.56 million (14.4% margin, 16.9% beat)
- Operating Margin: 9.7%, up from 7.5% in the same quarter last year
- Locations: 505 at quarter end, up from 499 in the same quarter last year
- Same-Store Sales rose 5.8% year on year (-0.6% in the same quarter last year)
- Market Capitalization: $400.8 million
“We are proud of our first quarter results, including systemwide same-store sales growth of 5.8% and restaurant-level margin expansion of 320 basis points year-over-year. This performance reflects strength across multiple fronts, from our innovation pipeline - highlighted by the success of our Baja Double Tostadas - to the operational progress we are seeing across every key metric - including customer service, accuracy, and speed of service. It is this broad-based strength that gives us the confidence to raise our comparable restaurant sales and Adjusted EBITDA guidance expectations for the full year,” said Liz Williams, Chief Executive Officer of El Pollo Loco Holdings, Inc.
Company Overview
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ: LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $497.1 million in revenue over the past 12 months, El Pollo Loco is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, El Pollo Loco’s sales grew at a weak 1.8% compounded annual growth rate over the last seven years as its restaurant footprint remained unchanged and it barely increased sales at existing, established dining locations.
This quarter, El Pollo Loco reported year-on-year revenue growth of 5.9%, and its $126.2 million of revenue exceeded Wall Street’s estimates by 3.2%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection doesn't excite us and indicates its menu offerings will see some demand headwinds.
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Restaurant Performance
Number of Restaurants
The number of dining locations a restaurant chain operates is a critical driver of how quickly company-level sales can grow.
El Pollo Loco operated 505 locations in the latest quarter, and over the last two years, has kept its restaurant count flat while other restaurant businesses have opted for growth.
When a chain doesn’t open many new restaurants, it usually means there’s stable demand for its meals and it’s focused on improving operational efficiency to increase profitability.
Same-Store Sales
A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth at restaurants open for at least a year.
El Pollo Loco’s demand within its existing dining locations has been relatively stable over the last two years but was below most restaurant chains. On average, the company’s same-store sales have grown by 1.7% per year. Given its flat restaurant base over the same period, this performance stems from a mixture of higher prices and increased foot traffic at existing locations.
In the latest quarter, El Pollo Loco’s same-store sales rose 5.8% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign.
Key Takeaways from El Pollo Loco’s Q1 Results
We were impressed by how significantly El Pollo Loco blew past analysts’ EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 4.7% to $14.14 immediately following the results.
El Pollo Loco may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
