Why El Pollo Loco Stock Popped Today
Key Points
El Pollo Loco's restaurants are becoming more profitable.
Growth is set to accelerate in 2026.
- 10 stocks we like better than El Pollo Loco ›
Shares of El Pollo Loco (NASDAQ: LOCO) surged on Friday after the fire-grilled chicken chain's profits surpassed investors' expectations.
Image source: Getty Images.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Solid Q4 results
El Pollo Loco's fourth-quarter revenue rose 8% year over year to $123.5 million, though $5.8 million of those sales were due to an additional operating week compared to the fourth quarter of 2024.
Systemwide comparable restaurant sales, which measure revenue at stores open for at least 15 months, grew 2.1%.
The sales gains helped to drive El Pollo Loco's profit margins higher. Its restaurant contribution margin improved to 17.5% from 16.7% in the prior-year period.
All told, the fast-food chain's adjusted net income jumped 24% to $7.3 million, or $0.25 per share. That was well above Wall Street's estimates, which had called for per-share profits of $0.20.
Accelerating growth
Like other restaurant chains, El Pollo Loco's sales could come under pressure from higher gasoline prices related to the conflict in the Middle East. But the flame-roasted chicken joint's fourth-quarter results show it can operate effectively in a challenging economic environment -- and that consumers are finding value in its offerings.
For its part, management expects El Pollo Loco's comparable sales to grow by up to 3% in 2026. The company also has plans to open three to four company-operated stores and 15 to 16 franchised locations in the coming year.
"As we look ahead, our priority for 2026 is clear: to drive sustainable traffic growth across our system and thoughtfully accelerate new restaurant growth in new markets," CEO Liz Williams said.
Should you buy stock in El Pollo Loco right now?
Before you buy stock in El Pollo Loco, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and El Pollo Loco wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 13, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
