El Pollo Loco reports record revenue and 25 new restaurants in 2025
El Pollo Loco has reported strong financial results for 2025, with revenue and profit margins rising across its chain. By the end of the year, the company operated 500 locations after opening 25 new restaurants—more than in the previous 12 months. Growth was driven by higher sales, new sites, and an extra trading week in the final quarter.
The company's total revenue for the fourth quarter reached $123.5 million, an increase of $9.2 million compared to the same period in 2024. This rise came from a 7.1% jump in company-operated restaurant revenue, which hit $102.4 million, and a 15.5% boost in franchise revenue to $13.0 million. Both gains were supported by a 0.4% rise in comparable sales and the additional week of trading.
For the full year, comparable store sales grew by just 0.1% systemwide. While the average customer spend rose by 0.7%, this was partly offset by a 0.6% decline in transactions. Nine new restaurants opened in 2025, with the most recent locations averaging over $2.0 million in annualised sales. Profitability also improved. The restaurant contribution margin climbed to 17.5%, up from 16.7% a year earlier. Labour costs fell to 31.5% of sales, down by 90 basis points, thanks to better efficiency and higher menu prices. Adjusted EBITDA for the year reached $16.9 million, compared to $14.3 million in 2024, with the extra week adding $0.77 million. Looking ahead, management expects 2%-3% growth in systemwide comparable sales for 2026, alongside 18-20 new restaurant openings. For 2027-2028, projections include low single-digit sales growth, mid-single-digit expansion in total locations, and high single-digit increases in adjusted EBITDA.
El Pollo Loco ended 2025 with 500 branches, including 25 new sites across California, Texas, Arizona, and Nevada. The company's financial performance improved through higher sales, cost controls, and strategic expansion. Future plans focus on steady growth in both revenue and restaurant numbers over the next three years.
