El Pollo Loco reported robust fourth-quarter results Thursday after market close, signaling a successful culmination of its two-year turnaround strategy. The fast-casual chain announced positive systemwide same-store sales growth of 2.1%, a significant 8% revenue increase reaching $123.5 million, and a continued upward trend in restaurant-level margins, which improved to 17.5% from 16.7% in the fourth quarter of 2024. These metrics underscore a period of substantial progress under the leadership of Chief Executive Officer Liz Williams, who took the helm in 2024 and initiated a comprehensive plan focused on five key pillars: stronger brand positioning, a hospitality mindset, a digital-first approach, robust unit economics, and new unit growth.
A Strategic Turnaround: From Stabilization to Sustained Momentum
The positive financial report marks a significant milestone in El Pollo Loco’s journey to revitalize its brand and operations. When Williams joined the company in 2024, the organization was at a critical juncture, facing challenges that necessitated a strategic overhaul. The turnaround plan, meticulously crafted and executed over the past two years, aimed to address fundamental aspects of the business, from the core menu offerings to customer engagement and operational efficiency. The current results suggest that this multi-faceted approach is yielding tangible and sustainable improvements.
"The fourth quarter results capped off a transformative second year in El Pollo Loco’s turnaround plan," stated CEO Liz Williams. This declaration highlights the deliberate and phased nature of the revitalization efforts, indicating a shift from foundational stabilization to sustained growth and innovation. The company’s strategic framework has been instrumental in navigating the competitive landscape of the quick-service restaurant (QSR) sector.
Culinary Innovation at the Forefront: Reinventing the Menu
A cornerstone of El Pollo Loco’s renewed focus has been culinary innovation, a strategy that Williams credits with driving increased transaction volume. Throughout the past year, the company has strategically introduced more portable and appealing menu items, catering to evolving consumer preferences. The successful launch of the Queso Crunch Burrito Bowls and Double Chicken Street Corn Bowls not only bolstered fourth-quarter performance but also earned them a permanent place on the menu. Building on this momentum, the Double Pollo Salad, introduced in January, has also become a permanent fixture, demonstrating the chain’s ability to identify and capitalize on popular flavor profiles.
In late February, El Pollo Loco further leveraged consumer trends with the introduction of a "Protein Packed Menu." This initiative ingeniously highlighted existing menu items, requiring no significant operational adjustments, while tapping into the growing consumer demand for high-protein options. Williams described the campaign with a "playful nod to the fact that we have been the legitimate place for protein for over 50 years." The accompanying social media content, featuring a drumstick reimagined as a protein bar, effectively communicated the brand’s long-standing heritage as a source of quality protein, resonating with a younger, health-conscious demographic.
Looking ahead, El Pollo Loco is poised to enter the burgeoning chicken tenders category with the upcoming launch of Loco tenders, complemented by signature dipping sauces. This move signifies a strategic expansion into a highly competitive but lucrative segment of the QSR market. Furthermore, the company is actively testing new items, including loaded quesadillas and a crispy grilled chicken sandwich, both priced competitively under $10, aiming to attract value-conscious consumers without compromising on quality. The beverage menu is also being refreshed with the testing of horchata iced coffee and "cold foam coolers," innovative twists on traditional aqua frescas, demonstrating a commitment to exploring new taste experiences.
To support this accelerated pace of culinary development, El Pollo Loco has invested in its infrastructure by establishing a dedicated culinary kitchen at its Costa Mesa, California, support center. This strategic enhancement signifies a commitment to fostering a robust internal capability for innovation and product testing.
"Thoughtfully pacing and sequencing is key, and doing a lot of testing, which is what we’re doing right now," Williams emphasized. "We have a belief that the category loves innovation. The consumer loves to try new things, and we think our brand leans into that exploration. From the restaurant support center standpoint, we’ve built back that muscle to do innovation within our operational footprint." This proactive approach to innovation, supported by enhanced culinary resources, positions El Pollo Loco to remain agile and responsive to market demands.
The company’s marketing efforts have also been recalibrated to amplify its core strengths. The "Let’s Get Loco" campaign, launched in 2025, now prominently features the brand’s signature fire-grilled chicken, cooked fresh in its restaurants. This messaging aims to solidify El Pollo Loco’s position as an "authority in authenticity" within the QSR landscape, differentiating it from competitors who may rely on pre-cooked or less artisanal preparation methods. Williams asserted, "We believe we have a true competitive advantage in the QSR landscape that few brands can claim." This emphasis on authenticity and quality is a key differentiator in a crowded market.
.jpg?width=1280&&quality=80&format=jpg&disable=upscale)
Complementing its national branding initiatives, El Pollo Loco is intensifying its local marketing efforts. By supporting fundraising events and enhancing its catering programs, the company is fostering deeper community engagement and increasing brand visibility in both established and emerging markets. This localized approach has proven particularly effective in resonating with the 25-to-34 age demographic, a key target audience for the brand.
Enhancing the Guest Experience: A Focus on Hospitality
Beyond menu innovation, El Pollo Loco has placed a significant emphasis on elevating the in-restaurant experience. The past year has seen a concerted effort to refine operational standards, utilizing third-party measurements and detailed analysis of consumer feedback. This data-driven approach has led to measurable improvements in key guest satisfaction metrics, including accuracy, quality, friendliness, cleanliness, and speed of service. To sustain and build upon these gains, the company plans further investments in new training methodologies and technological tools designed to empower its frontline staff and ensure consistent service excellence.
Embracing a Digital-First Future
El Pollo Loco’s strategic vision extends to a comprehensive "digital-first mindset," encompassing both customer engagement and internal operations. The company has observed a significant uplift in app-based promotions, exemplified by the success of the "12 Days of Pollo" campaign in December, which directly contributed to increased engagement and transaction growth during the fourth quarter. Loyalty program participation and revenue have seen a remarkable year-over-year increase of over 20%, a testament to the program’s appeal and effectiveness. The recent refresh of the Rewards program in January, aimed at delivering more exclusive offers to members, further reinforces this commitment to digital customer relationship management.
On the operational front, El Pollo Loco has completed a systemwide transition to a cloud-enabled point-of-sale (POS) platform. This upgrade promises faster transaction processing and provides deeper operational insights, enabling more informed decision-making at both the restaurant and corporate levels. To further accelerate its technological advancements, particularly in the realm of artificial intelligence, the company has appointed Vadim Parizher as its new Chief Technology Officer. Parizher brings a wealth of experience from his eight-year tenure at Taco Bell, where he most recently served as Vice President of Technology, signaling a strategic investment in digital transformation and innovation.
Driving Development: New Units and Modernized Locations
El Pollo Loco’s commitment to growth is demonstrably reflected in its development pipeline. In 2025, the company successfully opened nine new restaurants, including its milestone 500th location in Colorado Springs, Colorado. This expansion represents the most significant systemwide unit growth the company has experienced since 2022, indicating a renewed vigor in its physical footprint expansion.
"More importantly, we aren’t just opening restaurants. We are opening successful ones," Williams stated. "The restaurants we’ve opened since 2024 are averaging over $2 million annually, driven by our strong franchise partners and our new restaurant training teams who bring our refined brand positioning to life for our customers every single day." This focus on the profitability and success of new units, rather than mere expansion, highlights a strategic approach to development that prioritizes long-term viability.
For 2026, El Pollo Loco has set an ambitious target of opening between 18 and 20 new locations, with up to four of these being company-owned. A significant portion of this planned expansion is expected to occur outside of its traditional stronghold in California, indicating a strategic diversification of its market presence.
The company’s remodeling program also continues to yield positive results. In 2025, 69 restaurant remodels were completed, contributing to mid-single-digit sales lifts in those locations. The remodeling initiative is set to continue in 2026, with plans to update 25 to 35 company-operated restaurants and an additional 30 to 40 franchise-operated locations. These modernizations aim to enhance the customer experience and ensure that the brand’s physical presence aligns with its evolving identity.
Outlook for 2026: Continued Growth and Margin Expansion
Looking ahead to the full year of 2026, El Pollo Loco projects continued positive momentum. The company anticipates systemwide same-store sales growth of 2% to 3%, a consistent indicator of ongoing consumer demand. Furthermore, store-level margins are expected to range between 18% and 18.5%, reflecting an anticipated improvement in operational efficiency and profitability.
"We’ve stabilized and dramatically improved the margins and the profitability of the brand," Williams concluded. "We figured out what works in terms of driving sales, what formula works when it comes to innovation or value. It’s harder to predict what’s going on with consumers, but there are just some fundamentals – formulas that drive growth. What began as a transformation effort has now evolved into sustained momentum that validates our long-term growth strategy." This statement underscores a confidence in the company’s strategic direction and its ability to achieve sustained financial success. The careful calibration of innovation, operational excellence, and strategic development positions El Pollo Loco for continued success in the dynamic QSR industry.