El Pollo Loco reported second quarter 2026 results featuring an adjusted EPS beat despite a slight revenue miss and slower-than-expected comparable sales growth. System-wide comparable restaurant sales increased 3.9%, falling short of the 5.1% analyst estimate, as price-driven check growth was partially offset by a 1.1% decline in transactions at company-operated stores. Despite the traffic headwinds, the company demonstrated strong margin discipline and raised its full-year 2026 guidance for both comparable sales and Adjusted EBITDA.
Key Highlights
- Adjusted diluted EPS of $0.30 slightly exceeded the $0.29 estimate, while GAAP results were bolstered by a $6.3 million net legal settlement gain.
- Restaurant-level contribution margin expanded 40 basis points to 19.5%, driven by higher menu prices and improved operating efficiencies.
- Management raised FY2026 Adjusted EBITDA guidance to $68 million–$70 million and increased system-wide comparable sales growth expectations to 3.5%–4.5%.
- Total debt was reduced to $30.0 million as of quarter-end, with an additional $4.0 million paid down subsequently in July.