El Pollo Loco Beats Q4 Earnings, Plans 18-20 New Sites

El Pollo Loco, the Costa Mesa, California-based fast-casual chain specializing in flame-grilled chicken, reported stronger-than-expected fourth-quarter results on Thursday, prompting a nearly 17 percent surge in its stock price the following day. The company, which operates 503 locations primarily in California, announced plans to open 18 to 20 new restaurants in 2026, with the majority outside its home state, signaling an acceleration of its national expansion.

Revenue for the quarter climbed 8 percent to $123.5 million compared with the previous year, bolstered by an extra operating week and a 2.1 percent increase in systemwide comparable restaurant sales at locations open at least 15 months. Adjusted net income rose 24 percent to $7.3 million, or 25 cents per share, exceeding analysts' forecasts of 20 cents per share. Restaurant-level margins improved to 17.5 percent from 16.7 percent a year earlier, driven by cost-cutting measures and higher sales volumes. Chief Executive Officer Liz Williams attributed the gains to strategic efficiencies, including the use of second-generation sites—former restaurant spaces that require less build-out investment. For instance, a new Dallas...