Revenue growth has decelerated from 8.1% in Q4 2025 to 3.0% in Q2 2026, while the operating margin's sharp rebound to 14.4% is driven almost entirely by a volatile gross margin expansion from a trough of 19.8% a year prior.
El Pollo Loco Holdings, Inc. (LOCO) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 500.79M | 490.05M | 473.01M | 468.66M | 469.96M | 454.36M | 426.09M | 442.33M | 435.83M | 401.7M | 380.12M | 355.06M | 344.86M | 314.73M | 293.61M |
| Revenue Growth % | 4.4% | 3.6% | 0.93% | -0.28% | 3.43% | 6.64% | -3.67% | 1.49% | 8.5% | 5.68% | 7.06% | 2.96% | 9.57% | 7.19% | - |
| Cost of Goods Sold | 358.95M | 349.69M | 369.49M | 375.3M | 386.26M | 355.09M | 332.41M | 345.58M | 339.37M | 305.45M | 286.27M | 263.58M | 255.5M | 236.25M | 224.12M |
| COGS % of Revenue | - | 71.36% | 78.12% | 80.08% | 82.19% | 78.15% | 78.02% | 78.13% | 77.87% | 76.04% | 75.31% | 74.24% | 74.09% | 75.06% | 76.33% |
| Gross Profit | 141.84M | 140.35M | 103.52M | 93.37M | 83.7M | 99.27M | 93.67M | 96.75M | 96.45M | 96.25M | 93.85M | 91.48M | 89.36M | 78.48M | 69.49M |
| Gross Margin % | 28.32% | 28.64% | 21.88% | 19.92% | 17.81% | 21.85% | 21.98% | 21.87% | 22.13% | 23.96% | 24.69% | 25.76% | 25.91% | 24.94% | 23.67% |
| Gross Profit Growth % | - | 35.58% | 10.87% | 11.55% | -15.69% | 5.98% | -3.17% | 0.3% | 0.21% | 2.56% | 2.6% | 2.37% | 13.87% | 12.93% | - |
| Operating Expenses | 88.84M | 97.89M | 62.35M | 53.58M | 53.51M | 57.94M | 60.12M | 58.42M | 68.09M | 56.65M | 50.71M | 42.09M | 41.06M | 35.72M | 33.98M |
| OpEx % of Revenue | - | 19.98% | 13.18% | 11.43% | 11.39% | 12.75% | 14.11% | 13.21% | 15.62% | 14.1% | 13.34% | 11.85% | 11.91% | 11.35% | 11.57% |
| Selling, General & Admin | 45.31M | 50.26M | 46.27M | 42.02M | 39.09M | 39.85M | 35.92M | 37.21M | 50.26M | 38.52M | 34.66M | 29M | 29.52M | 25.51M | 24.45M |
| SG&A % of Revenue | - | 10.26% | 9.78% | 8.97% | 8.32% | 8.77% | 8.43% | 8.41% | 11.53% | 9.59% | 9.12% | 8.17% | 8.56% | 8.1% | 8.33% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 47.64M | 16.08M | 11.55M | 14.42M | 18.09M | 24.2M | 21.21M | 761K | 5.57M | -352K | -206K | -42.05M | 10.21M | 9.53M |
| Operating Income | 53M | 42.46M | 41.17M | 39.79M | 30.12M | 41.34M | 33.56M | 38.33M | -9.46M | 6.82M | 34.63M | 48.82M | 49.28M | 42.39M | 33.05M |
| Operating Margin % | 10.58% | 8.66% | 8.7% | 8.49% | 6.41% | 9.1% | 7.88% | 8.66% | -2.17% | 1.7% | 9.11% | 13.75% | 14.29% | 13.47% | 11.26% |
| Operating Income Growth % | - | 3.14% | 3.46% | 32.11% | -27.13% | 23.18% | -12.45% | 505.09% | -238.64% | -80.29% | -29.07% | -0.93% | 16.26% | 28.26% | - |
| EBITDA | 65.51M | 58.42M | 56.88M | 55.03M | 44.54M | 56.51M | 50.43M | 56.18M | 8.36M | 24.95M | 50.68M | 61.92M | 60.82M | 52.6M | 42.58M |
| EBITDA Margin % | 13.08% | 11.92% | 12.03% | 11.74% | 9.48% | 12.44% | 11.84% | 12.7% | 1.92% | 6.21% | 13.33% | 17.44% | 17.64% | 16.71% | 14.5% |
| EBITDA Growth % | 16.96% | 2.71% | 3.38% | 23.55% | -21.19% | 12.05% | -10.23% | 571.7% | -66.48% | -50.77% | -18.14% | 1.8% | 15.62% | 23.54% | - |
| D&A (Non-Cash Add-back) | 12.51M | 15.97M | 15.72M | 15.23M | 14.42M | 15.18M | 16.88M | 17.86M | 17.82M | 18.13M | 16.05M | 13.09M | 11.54M | 10.21M | 9.53M |
| EBIT | 53.07M | 42.05M | 41.19M | 39.69M | 30.56M | 41.28M | 33.42M | 41.68M | -8.69M | 39.6M | 34.3M | 48.67M | -2.42M | 20.96M | 33.15M |
| Net Interest Income | -3.52M | -4.47M | -5.9M | -4.81M | -1.68M | -1.82M | -3.29M | -3.69M | -3.5M | -3.28M | -3.15M | -3.71M | -18.06M | -36.33M | -38.89M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 49K | 63K | 94K | 100K |
| Interest Expense | 3.52M | 4.47M | 5.9M | 4.81M | 1.68M | 1.82M | 3.29M | 3.69M | 3.5M | 3.28M | 3.15M | 3.76M | 18.13M | 36.43M | 38.99M |
| Other Income/Expense | -3.86M | -4.88M | -5.88M | -4.91M | -1.24M | -1.88M | -3.43M | -3.69M | -2.74M | 2.29M | -3.51M | -3.91M | -69.83M | -57.86M | -38.89M |
| Pretax Income | 49.14M | 37.58M | 35.29M | 34.88M | 28.88M | 39.45M | 30.13M | 34.64M | -12.2M | 9.12M | 31.12M | 44.91M | -20.55M | -15.47M | -5.84M |
| Pretax Margin % | 9.81% | 7.67% | 7.46% | 7.44% | 6.14% | 8.68% | 7.07% | 7.83% | -2.8% | 2.27% | 8.19% | 12.65% | -5.96% | -4.92% | -1.99% |
| Income Tax | 14.28M | 11.09M | 9.61M | 9.32M | 8.08M | 10.33M | 5.65M | 9.74M | -3.21M | 497K | 12.78M | 20.86M | -63.01M | 1.4M | 2.03M |
| Effective Tax Rate % | 29.06% | 29.51% | 27.22% | 26.73% | 27.97% | 26.19% | 18.76% | 28.12% | 26.29% | 5.45% | 41.07% | 46.44% | 306.68% | -9.06% | -34.72% |
| Net Income | 34.86M | 26.49M | 25.68M | 25.55M | 20.8M | 29.12M | 24.47M | 24.9M | -8.99M | 8.62M | 18.34M | 24.05M | 42.46M | -16.87M | -7.87M |
| Net Margin % | 6.96% | 5.4% | 5.43% | 5.45% | 4.43% | 6.41% | 5.74% | 5.63% | -2.06% | 2.15% | 4.82% | 6.77% | 12.31% | -5.36% | -2.68% |
| Net Income Growth % | 40.99% | 3.12% | 0.51% | 22.85% | -28.57% | 18.99% | -1.71% | 376.85% | -204.35% | -53% | -23.76% | -43.35% | 351.66% | -114.53% | - |
| Net Income (Continuing) | 34.86M | 26.49M | 25.68M | 25.55M | 20.8M | 29.12M | 24.47M | 24.9M | -8.99M | 8.62M | 18.34M | 24.05M | 42.46M | -16.87M | -7.87M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.16 | 0.90 | 0.86 | 0.74 | 0.57 | 0.80 | 0.68 | 0.67 | -0.23 | 0.22 | 0.47 | 0.62 | 1.24 | -0.45 | -0.21 |
| EPS Growth % | 39.29% | 4.65% | 16.22% | 29.82% | -28.75% | 17.65% | 1.49% | 391.3% | -204.55% | -53.19% | -24.19% | -50% | 375.56% | -114.29% | - |
| EPS (Basic) | - | 0.91 | 0.86 | 0.75 | 0.57 | 0.81 | 0.70 | 0.68 | -0.23 | 0.22 | 0.48 | 0.63 | 1.32 | -0.47 | -0.22 |
| Diluted Shares Outstanding | 30.09M | 29.51M | 30.04M | 34.37M | 36.58M | 36.45M | 35.8M | 37.44M | 38.57M | 39.09M | 39.03M | 39.04M | 34.35M | 37.39M | 37.39M |
| Basic Shares Outstanding | 29.73M | 29.26M | 29.85M | 34.25M | 36.35M | 35.97M | 35.19M | 36.74M | 38.57M | 38.45M | 38.36M | 37.95M | 32.29M | 35.86M | 35.86M |
| Dividend Payout Ratio | - | - | - | - | 267.17% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LOCO stock.
For fiscal year 2025, El Pollo Loco Holdings, Inc. (LOCO) reported total revenue of $490.0M. This represents a 66.9% increase compared to $293.6M in 2012.
El Pollo Loco Holdings, Inc. (LOCO) is profitable, generating $26.5M in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
El Pollo Loco Holdings, Inc. (LOCO) reported an operating income of $42.5M, resulting in an operating profit margin of 8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
El Pollo Loco Holdings, Inc. (LOCO) generated $140.4M in gross profit for the year, representing a gross profit margin of 28.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin Volatility and Growth Deceleration
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Margin Rebound
LOCO's revenue growth decelerated from a peak of 8.1% in Q4 2025 to just 3.0% in Q2 2026, suggesting a normalization of post-recovery demand as per reported financial statements.
The growth trajectory shows a clear deceleration from the strong 8.1% gain in Q4 2025 to a more modest 3.0% in the latest quarter, indicating the recent expansionary phase may be losing momentum. This deceleration is occurring against the backdrop of a significant rebound in profitability, raising questions about whether the company is sacrificing top-line growth to improve margins.
Volatile Gross Margins Driving Earnings
Gross margin expanded dramatically to 32.8% in Q2 2026 from a trough of 19.8% in Q2 2025, a swing that appears to be the primary driver of the recent earnings recovery based on company filings.
The income statement reveals extreme volatility in gross margin, swinging over 1,300 basis points in a single year, which suggests significant exposure to volatile input costs or promotional activity. This margin recovery is the dominant factor in operating profit improvement, as SG&A expenses have remained relatively stable as a percentage of revenue, indicating the business lacks strong operating leverage.
Limited Operating Leverage in Cost Structure
Operating income growth is heavily dependent on gross margin expansion, as SG&A as a percentage of revenue has not shown consistent improvement, limiting true operating leverage according to recent SEC filings.
A comparison of gross profit and operating income trends reveals that profitability gains are almost entirely sourced from the gross margin line, not from overhead efficiency. SG&A expenses have fluctuated between 9.8% and 13.5% of revenue over the period without a clear downward trend, suggesting the corporate cost structure is relatively fixed and does not scale efficiently with incremental revenue.
Margin Expansion May Be Unsustainable
The record 32.8% gross margin in Q2 2026 appears anomalous compared to the company's three-year average, warranting skepticism about its sustainability given the volatile historical pattern.
The most significant risk to the income statement narrative is the potential non-repeatability of the current gross margin level. The extreme volatility shown in the data suggests that achieving and sustaining a 32%+ margin may require specific, favorable conditions in food costs or pricing that could reverse. Investors should monitor whether this margin level is structural or cyclical, as a reversion to the mean would pressure earnings significantly.