El Pollo Loco Stock: A Contrarian Opportunity Amid Sector Weakness?

While many restaurant chains are struggling under significant macroeconomic pressure, El Pollo Loco Holdings, Inc. is demonstrating notable operational resilience. The company’s latest quarterly results surpassed many of its industry peers, even as it navigated a period of declining same-store sales.

El Pollo Loco reported second-quarter 2025 total revenue of $125.8 million, representing an increase from the $122.2 million recorded in the same period last year. This growth was primarily fueled by higher sales at company-operated restaurants, which climbed to $104.3 million.

The financial picture, however, presents a mix of strengths and challenges. The company posted an adjusted net income of $8.2 million, or $0.28 per share, while its adjusted EBITDA reached $18.5 million. Conversely, system-wide comparable restaurant sales declined by 0.3%, and operating income Read more...