5 Must-Read Analyst Questions From El Pollo Loco's Q2 Earnings Call

El Pollo Loco’s second quarter results for 2025 showed revenue and adjusted profit above Wall Street expectations, even as same-store sales remained flat and operating margin declined year over year. Management attributed performance to targeted menu innovation and value-driven promotions rather than across-the-board discounting. CEO Elizabeth Williams pointed to the launch of Fresca Wraps, salads, and premium quesadillas as key drivers in attracting both new and returning customers. The company’s updated “Let’s get Loco” brand campaign and refreshed digital experience also supported a modest improvement in overall traffic, helping to partially offset persistent consumer headwinds.

Is now the time to buy LOCO? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From El Pollo Loco’s Q2 Earnings Call

• Jake Rowland Bartlett (Truist Securities) asked about the degree of consumer headwinds and how El Pollo Loco’s initiatives are offsetting these pressures. CEO Elizabeth Williams explained that targeted value promotions and menu innovation are helping drive traffic, particularly among value-sensitive customers.
• Bartlett (Truist Securities) also questioned the dynamics behind franchise check pressure and discounting. Williams noted last year’s price increases and selective discounting by some franchisees, highlighting the importance of maintaining value while supporting transaction growth.
• Bartlett (Truist Securities) inquired about the confidence behind accelerating unit growth in 2026. Williams cited improved unit economics, lower build-out costs for second-generation sites, and franchise incentives as key reasons for optimism, with many sites already in development.
• Will (Craig-Hallum Capital Group) sought more detail on same-store sales trends and how new product launches contributed to sequential improvement. CFO Ira Fils and Williams pointed to the brand relaunch and menu innovations as main drivers, with sales momentum expected to build as marketing efforts expand.
• Matthew James Curtis (William Blair) probed whether new menu items and the brand relaunch led to discernible transaction lift or trade-off in average check. Williams reported increased visit frequency among existing customers and a notable uptick in new customers, attributing gains to innovation and operational improvements.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will monitor (1) the performance and customer adoption of new menu items such as burrito bowls and chicken tenders, (2) the effectiveness of the brand relaunch and marketing campaigns in driving traffic and awareness, and (3) progress toward unit growth and remodel goals, particularly outside California. Continued digital engagement and execution on operational efficiencies will also be important markers of strategic success.

El Pollo Loco currently trades at $10.17, down from $10.33 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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