El Pollo Loco Holdings Inc

El Pollo Loco reported second-quarter systemwide comparable sales growth of 3.9 percent and outlined plans to expand beyond California. Total revenue rose to $129.6 million from $125.8 million a year earlier, while restaurant-level margin improved to 19.5 percent from 19.1 percent. CEO Liz Williams said new menu items like Loco Tenders and Loaded Quesadillas, along with digital engagement and franchise development, will drive growth outside its home state. The company expects to open 18 to 20 restaurants systemwide in 2026, with the vast majority of future openings outside California, and is fielding interest from prospective franchisees across the country.

El Pollo Loco raised its full-year system-wide comparable store sales growth guidance to a range of 3.5% to 4.5% and increased its adjusted EBITDA outlook to between $68 million and $70 million. The company also reduced its expected capital spending to $33 million to $37 million, citing the timing of its new remodel program, while reiterating a target of 18 to 20 new system-wide restaurant openings this year. For the second quarter ended July 1, 2026, total revenue was $129.6 million, up from $125.8 million a year earlier, with system-wide same-store sales growth of 3.9% and restaurant-level margin of 19.5%. GAAP net income was $12.8 million, or $0.43 per diluted share, and digital sales represented approximately 28% of system sales, up 13% year-over-year.

Freedom Capital Markets initiated coverage of five restaurant companies on Wednesday, assigning Buy ratings to Dutch Bros, First Watch Restaurant Group, and El Pollo Loco, while launching coverage of CAVA Group and Kura Sushi USA at Hold. Analyst Lynne Collier set a $95 price target on Dutch Bros, implying roughly 33% upside, citing the company's unique culture, significant white space opportunity, industry-leading cash-on-cash returns, and upcoming top-line catalysts including the roll-out of food. First Watch received a Buy rating and $17 price target, representing 31% upside, with Collier describing it as the emerging leader in the better breakfast category with excellent returns and a long runway of growth. El Pollo Loco was initiated at Buy with a $22 price target, also implying 33% upside, as Collier called it an under-the-radar name with new leadership executing a turnaround strategy that is improving same-store sales and accelerating unit growth. CAVA Group was started at Hold with a $95 price target due to rich valuation at 44.2 times next-twelve-month EV/EBITDA, while Kura Sushi USA was initiated at Hold with a $68 price target, with limited comp predictability and balanced risk/reward at approximately 22 times NTM EV/EBITDA.

El Pollo Loco has opened its first restaurant in Idaho, located at 3471 W Chinden Blvd in Meridian, marking the brand’s entry into its 10th state. The company plans to open 18 to 20 new restaurants systemwide in 2026, nearly double its 2025 pace, with the vast majority outside California. A second Idaho location is scheduled for fall 2026, with three to four additional restaurants planned as the market develops. The Meridian restaurant is operated by a franchise group with more than 25 years of El Pollo Loco experience in California.

Shares of El Pollo Loco and Wingstop rose in afternoon trading as WTI crude fell below $70 per barrel, easing pressure on consumer wallets. El Pollo Loco jumped 4.9% and Wingstop gained 4%, while Wendy's surged 30% driven by retail enthusiasm and a CFO change. The drop in oil prices acts as a de facto tax cut for lower-income consumers, boosting discretionary spending on dining out. The restaurant sector has recently warned of traffic slowdowns due to inflation fatigue, and cheaper energy provides a much-needed catalyst for recovery.

Domino's reported first-quarter revenues of $1.15 billion, up 3.5% year on year but falling 1% short of analyst expectations, alongside a slight miss on same-store sales and EPS estimates. The stock has declined 21% since the announcement, trading at $290.45. Among the 12 traditional fast food stocks tracked, the group collectively beat revenue consensus by 1.4% but saw average share prices fall 3.7%. El Pollo Loco was the best performer, with revenues of $126.2 million beating estimates by 3.2% and its stock rising 14.2%, while Papa John's was the weakest, with revenues of $478.6 million missing by 1.4% and posting the slowest revenue growth in the group.

Traditional fast food stocks reported a strong first quarter overall, with aggregate revenues beating analyst consensus estimates by 1.4%, but share prices have declined 3.7% on average since the latest earnings results. Restaurant Brands International posted revenue of $2.26 billion, up 7.3% year on year and exceeding expectations by 0.9%, yet its stock fell 12% to $71.91. El Pollo Loco was the best performer, with revenue of $126.2 million beating estimates by 3.2% and its stock rising 14.2% to $15.44. Papa John's was the weakest, with revenue of $478.6 million missing estimates by 1.4% and declining 7.7% year on year, though its stock edged up 2.9% to $34.78. Krispy Kreme reported revenue of $367 million, down 2.2% year on year but slightly above estimates, while McDonald's revenue rose 9.4% to $6.52 billion, beating estimates by 0.7%.

El Pollo Loco is launching new limited-time menu items, Loaded Quesadillas and Chatacoffee, at participating locations starting June 25. The Loaded Quesadillas come in Queso and Street Corn varieties, both featuring citrus-marinated fire-grilled chopped chicken breast and melted Jack Cheese in a grilled flour tortilla. Loco Rewards members gain early access beginning June 23. The chain is also introducing three iced coffee drinks under the Chatacoffee line, including a blend of classic iced coffee with Mexican-style Horchata, available at select locations. Additionally, BBQ Black Beans return as a limited-time side option starting June 25.