El Pollo Loco Holdings, Inc. Announces Third Quarter 2025 Financial Results

Core Insights - El Pollo Loco Holdings, Inc. reported its financial results for the third quarter ended September 24, 2025, highlighting both challenges and growth opportunities within the business [1][4]. Financial Performance - Company-operated restaurant revenue decreased to $100.7 million, down from $101.2 million in the same quarter of 2024, primarily due to a 1.1% decline in comparable restaurant revenue [5]. - Franchise revenue increased by 13.5% to $12.9 million, driven by new franchise openings and IT pass-through revenue related to a new Point of Sale system [6]. - Total revenue for the quarter was $121.5 million, compared to $120.4 million in the prior year [8]. - Net income rose to $7.4 million, or $0.25 per diluted share, compared to $6.2 million, or $0.21 per diluted share, in the same quarter of 2024 [10]. Operational Highlights - The company opened its 500th restaurant and plans to nearly double unit openings in the next year [4]. - Comparable restaurant sales decreased by 0.8%, with a 1.3% decline in average check size, partially offset by a 0.1% increase in transactions [5][8]. - Restaurant contribution increased to $18.5 million, representing 18.3% of company-operated restaurant revenue, up from 16.7% in the prior year [7]. Cost Management - General and administrative expenses rose to $12.3 million, primarily due to increases in stock compensation and legal fees related to shareholder activism [8][9]. - The company achieved margin expansion at both the restaurant and corporate levels through operational efficiencies and higher menu prices [4]. Debt and Cash Position - As of September 24, 2025, the company had an outstanding debt balance of $61.0 million and $10.9 million in cash and cash equivalents [11]. - Subsequent to the quarter-end, an additional $6.0 million was paid down on its revolving credit facility, reducing outstanding borrowings to $55.0 million [12]. Future Outlook - The company anticipates capital spending between $28.0 million and $30.0 million for the remainder of 2025, with expectations to open at least ten new restaurants [16].