El Pollo Loco reported a slight revenue miss for the third quarter of 2026, though adjusted earnings met analyst expectations. Performance was underpinned by the fourth consecutive quarter of positive comparable store sales, leading the company to accelerate its long-term development outlook.
Key Highlights
- System-wide comparable restaurant sales grew 5.0%, outperforming management's previous guidance range of 3.5% to 4.5%.
- Company-operated restaurant contribution margin improved 10 basis points to 18.4% as menu price increases and sales leverage offset higher utility and third-party delivery costs.
- Management updated its 2026 guidance, now expecting system-wide comparable sales growth of approximately 4.5% and capital spending of $33 million to $35 million.
- The company introduced a 2027 development target of 25 to 30 new restaurant openings, signaling an acceleration in unit growth.