Core Insights - El Pollo Loco Holdings, Inc. reported financial results for the second quarter ended June 25, 2025, showing a slight increase in revenue but a decrease in net income compared to the previous year [1][8]. Financial Performance - Company-operated restaurant revenue increased to $104.3 million, up from $102.3 million, primarily due to a 1.2% increase in comparable restaurant revenue and additional sales from new restaurant openings [5]. - Total revenue for the quarter was $125.8 million, compared to $122.2 million in the same quarter of 2024, reflecting a growth of approximately 2.1% [8]. - Net income decreased to $7.1 million, or $0.24 per diluted share, down from $7.6 million, or $0.25 per diluted share, in the prior year [10][8]. - Adjusted net income was $8.2 million, or $0.28 per diluted share, compared to $7.8 million, or $0.26 per diluted share, in the same quarter of 2024 [10][8]. Operational Highlights - System-wide comparable restaurant sales decreased by 0.3%, with a notable 1.5% increase in average check size due to menu price increases, partially offset by a 0.3% decrease in transactions [5][8]. - Franchise revenue increased by 14.8% to $13.4 million, driven by new franchise openings and IT pass-through revenue related to a new Point of Sale system [6][8]. - The company achieved profitability growth at both the restaurant and corporate levels, with restaurant contribution rising to $19.9 million, or 19.1% of company-operated restaurant revenue [7][8]. Strategic Initiatives - The CEO highlighted progress in brand re-launch and menu innovations, including the introduction of Fresca Wraps and Salads, which are expected to support long-term growth [4]. - The company plans to open 10 to 11 new restaurants in 2025, including 9 to 10 franchised locations, and anticipates capital spending between $31.0 million and $34.0 million [16][4]. Balance Sheet and Cash Flow - As of June 25, 2025, the company had an outstanding debt balance of $69.0 million and $9.0 million in cash and cash equivalents [11]. - The company repurchased 3,479 shares of common stock for approximately $0.1 million during the quarter [11]. Future Outlook - The company provided expectations for the remainder of 2025, emphasizing continued growth and expansion plans [13].