Why El Pollo Loco Stock Popped Today

By Joe Tenebruso – Mar 13, 2026 at 8:17PM ESTKey PointsEl Pollo Loco's restaurants are becoming more profitable.Growth is set to accelerate in 2026.Shares of El Pollo Loco (LOCO +16.91%) surged on Friday after the fire-grilled chicken chain's profits surpassed investors' expectations. Image source: Getty Images. Solid Q4 results El Pollo Loco's fourth-quarter revenue rose 8% year over year to $123.5 million, though $5.8 million of those sales were due to an additional operating week compared to the fourth quarter of 2024. Systemwide comparable restaurant sales, which measure revenue at stores open for at least 15 months, grew 2.1%. ExpandNASDAQ: LOCOEl Pollo LocoToday's Change(16.91%) $1.84Current Price$12.72Key Data PointsMarket Cap$326MDay's Range$12.24 - $13.0752wk Range$8.29 - $13.07Volume2.2MAvg Vol208KGross Margin18.59% The sales gains helped to drive El Pollo Loco's profit margins higher. Its restaurant contribution margin improved to 17.5% from 16.7% in the prior-year period. All told, the fast-food chain's adjusted net income jumped 24% to $7.3 million, or $0.25 per share. That was well above Wall Street's estimates, which had called for per-share profits of $0.20. Accelerating growth Like other restaurant chains, El Pollo Loco's sales could come under pressure from higher gasoline prices related to the conflict in the Middle East. But the flame-roasted chicken joint's fourth-quarter results show it can operate effectively in a challenging economic environment -- and that consumers are finding value in its offerings. For its part, management expects El Pollo Loco's comparable sales to grow by up to 3% in 2026. The company also has plans to open three to four company-operated stores and 15 to 16 franchised locations in the coming year. "As we look ahead, our priority for 2026 is clear: to drive sustainable traffic growth across our system and thoughtfully accelerate new restaurant growth in new markets," CEO Liz Williams said.Read NextNov 5, 2021 •By Motley Fool TranscribersEl Pollo Loco Inc (LOCO) Q3 2021 Earnings Call TranscriptAug 5, 2021 •By Motley Fool TranscribersEl Pollo Loco Inc (LOCO) Q2 2021 Earnings Call TranscriptMar 4, 2020 •By Rich SmithEl Pollo's Loco Idea: Making Its Own Plant-Based 'Chicken'Nov 10, 2019 •By Jon QuastFor Restaurants, Delivery Is a Catch-22Nov 1, 2019 •By Daniel MillerWhy Shares of El Pollo Loco Are Soaring 30% Higher Friday MorningAug 2, 2019 •By Jason HallHere's Why El Pollo Loco Stock Was Up 13% on FridayAbout the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst with more than 3,000 financial bylines to his name. Joe was an investment analyst for Stock Advisor, Income Investor, Crypto Society, and other top-rated investing services. He also managed Tier 1 Investments, a market-crushing real-money portfolio with 24.58% annualized returns. Joe graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorStocks MentionedEl Pollo LocoNASDAQ: LOCO$12.70(+16.73%)+$1.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.