To receive daily news and insights, subscribe to our free daily QSR AM Jolt. El Pollo Loco's Q2 results offered more evidence that its recent operating improvements are holding. But the larger message from CEO Liz Williams was about what comes next: using new menu items, digital engagement, and franchise development to expand its footprint beyond California.
Systemwide comps sales rose 3.9 percent in the second quarter, led by a 4.5 percent increase at franchise restaurants and a 3 percent gain at company-operated locations. Total revenue grew to $129.6 million from $125.8 million in the same period a year ago, while restaurant-level margin improved to 19.5 percent from 19.1 percent. The comp increase was driven by check rather than traffic.
Systemwide transactions declined 0.9 percent during the quarter. Company-operated average check increased 4.2 percent and franchise average check rose 5.3 percent, aided by an effective price increase of roughly 3.4 percent versus 2025. Menu innovation remains a key part of the strategy.
Loco Tenders, introduced at the end of Q1 as a LTO, drew new and younger consumers to the brand. Williams said the Mexican-seasoned tenders also performed well in snacking, delivery, and the brand's late-evening daypart. The company is now testing holding equipment that could allow it to operate the product at a higher volume and potentially bring it back as a recurring or permanent offering.
"As these were always planned as an LTO, we are taking the learnings and already thinking of ways to bring them back in the future," Williams said. "We believe we've only scratched the surface of what is possible with Loco Tenders." El Pollo Loco's Multi-Faceted Growth Strategy Takes HoldEl Pollo Loco Sees Strong Demand in New Markets, Plans Faster Expansion How Passion and Purpose Are Fueling El Pollo Loco's Next Chapter The chain followed tenders with Loaded Quesadillas in late June. The portable items come in queso and street-corn varieties and are priced at less than $10 à la carte, or $10.99 as a combo meal with chips, salsa, and a drink.
Loco Rewards members received early access before the broader launch. El Pollo Loco also introduced a Chata coffee platform featuring horchata, iced coffee, and cold foam. The brand sees beverages, tenders, and quesadillas as ways to create occasions outside its traditional lunch and dinner business, including afternoon snacking and on-the-go visits.
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