El Pollo Loco: Turnaround Postponed, But There's Plenty Of Upside Ahead

  • El Pollo Loco's Q1 FY 2025 earnings met expectations, but shares dipped due to concerning Q2 proxy data and ongoing headwinds in key markets. Despite menu innovations and slight revenue growth, same-store sales for company-operated restaurants rose marginally, while franchise locations saw declines, impacting overall performance. The company is in year two of its turnaround, focusing on expanding outside California and continuous menu innovations to drive traffic and improve margins.