Revenue growth stabilized at 5.9% in 2026Q1, yet gross margins remain sensitive to commodity costs, evidenced by the recovery to 28.8% from a 19.8% trough in 2025Q2.
| 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 | 497.05M | 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 % | 4.42% | 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 | 372.82M | 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 | 124.23M | 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 % | 24.99% | 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 | 77.84M | 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 | 51.79M | 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 | 2.29M | 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 | 46.38M | 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 % | 9.33% | 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 | 62.78M | 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 % | 12.63% | 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 % | 11.38% | 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) | 16.39M | 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 | 45.49M | 42.46M | 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 | -4.03M | -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 | 4.03M | 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 | -5.12M | -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 | 41.27M | 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 % | 8.3% | 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 | 12.1M | 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 % | 29.33% | 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 | 29.16M | 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 % | 5.87% | 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 % | 15.48% | 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) | 29.16M | 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) | 0.98 | 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 % | 15.29% | 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 | 29.69M | 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 | 29.41M | 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% | - | - | - | - | - | - | - | - | - | - |
California labor cost inflation
According to recent financial disclosures, LOCO achieved a 5.9% year-over-year revenue increase in 2026Q1, signaling a stabilization in top-line performance following the erratic growth patterns observed throughout 2024 and 2025, where quarterly growth rates frequently fluctuated between negative territory and low single-digit gains.
The recent uptick suggests that the brand's core value proposition is maintaining relevance despite a challenging regional economic environment. However, the lack of consistent, accelerating growth indicates that the company may be struggling to expand its footprint beyond its core California market, potentially limiting long-term scalability.
As reported in quarterly filings, LOCO's gross margin reached 28.8% in 2026Q1, a notable recovery from the 19.8% trough seen in 2025Q2, highlighting the inherent sensitivity of the company's fire-grilling model to fluctuating poultry commodity prices and localized labor cost pressures.
This margin volatility underscores the difficulty of maintaining consistent profitability when input costs are subject to rapid, localized spikes. Investors should monitor whether the company can sustain these higher margin levels without sacrificing transaction volume, as the current structure appears highly susceptible to external cost shocks.
Based on the provided income statements, LOCO's operating margin of 9.8% in 2026Q1 demonstrates a lean corporate structure, yet the inability to consistently scale operating income faster than revenue suggests that overhead efficiency gains are being offset by rising operational costs at the store level.
The data indicates that while the company maintains a disciplined SG&A profile, the underlying operating leverage is constrained by the manual nature of its food preparation process. This suggests that any further increases in labor mandates could disproportionately impact operating income, leaving little room for margin expansion.
Financial statements reveal that stock-based compensation reached $1.3M in 2025Q4, which, when viewed alongside the quarterly EPS volatility, suggests that non-cash expenses are playing a non-trivial role in the company's reported net income figures and overall earnings quality for shareholders.
The presence of recurring stock-based compensation warrants careful scrutiny, as it may be masking the true cash-generative capacity of the underlying restaurant operations. Analysts should adjust for these items to determine if the reported EPS growth is truly reflective of operational success or merely a byproduct of accounting adjustments.
While the company maintains a healthy balance sheet, the persistent fluctuation in quarterly net margins, which ranged from 3.9% to 6.5% over the last ten quarters, suggests that the business model may be more fragile than the current valuation implies to some market participants.
Short-term margin improvements may be driven by temporary menu price adjustments rather than structural operational efficiencies. If consumer resistance to price hikes increases, the company may face a difficult choice between sacrificing volume or accepting further margin compression in its core California territory.
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.