The Top 5 Analyst Questions From El Pollo Loco's Q1 Earnings Call

El Pollo Loco’s first quarter was marked by modest top-line growth and flat same-store sales, falling short of market expectations for a return to transaction growth. Management pointed to ongoing consumer pullback across regions and income levels as a key challenge, citing “underwhelming” results in a continued difficult environment. CEO Liz Williams acknowledged the impact of lower guest traffic, weather disruptions in core markets, and operational inconsistencies, stating that “progress takes time” in the company’s turnaround efforts. The Mango Habanero chicken launch helped drive trial among new guests, but repeat visits and operational execution lagged as the product rollout extended into March.

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 El Pollo Loco’s Q1 Earnings Call

• Jeremy Hamblin (Craig-Hallum Capital Group) asked about expectations for same-store sales in Q2. CEO Liz Williams explained that consumer headwinds are likely to persist, but the brand relaunch and value-focused menu additions are intended to support improvement in the second half.
• Hamblin (Craig-Hallum Capital Group) also inquired about the impact of recently launched products and how quickly new introductions might influence sales. Williams indicated that results should become evident within weeks of each launch, with wraps and quesadillas targeting different customer segments.
• Hamblin (Craig-Hallum Capital Group) questioned the timing of benefits from kitchen equipment investments on labor costs. CFO Ira Fils clarified that most equipment is already in place and labor inflation should moderate to 2-2.5% for the rest of the year.
• Jake Bartlett (Truist Securities) probed for regional or demographic differences in consumer softness, specifically among Hispanic consumers. Williams confirmed broad-based weakness but noted additional pressure on Hispanic guests.
• Andy Barish (Jefferies) asked about operational gaps identified through the customer feedback system. Williams acknowledged inconsistency in service and order accuracy, describing a “back-to-basics” push to address these gaps quickly.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will be monitoring (1) the impact of the brand relaunch and value-focused menu innovation on guest traffic and transaction growth, (2) progress on operational initiatives, especially in service consistency and labor productivity, and (3) the pace and performance of new store openings outside California. Execution against these milestones will be critical to reversing recent traffic trends.

El Pollo Loco currently trades at $10.81, up from $9.43 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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