El Pollo Loco sales rise as menu innovation boosts margins

More traffic and a stronger margin can mean fewer emergency shifts on the line, but El Pollo Loco’s latest growth push also gives crews more to execute every day.

The chain reported first-quarter 2026 revenue of $126.2 million for the 13-week period ended April 1, with systemwide comparable restaurant sales up 5.8% year over year. Restaurant contribution margin expanded 320 basis points to 19.2%, and adjusted EBITDA reached $18.2 million. After the quarter, El Pollo Loco raised its full-year 2026 outlook for comparable restaurant sales and adjusted EBITDA, a sign that the company thinks the current mix is holding up in stores.

That mix now includes a heavier dose of menu experimentation. Two items, Double Pollo Salads and Baja Double Tostados, reached more than 20% of the sales mix at their peak, while Loco Tenders broadened the brand’s appeal when they were introduced systemwide on April 23 in classic and spicy versions with signature dipping sauces. The company first showed the tenders at Revolve Festival during Coachella, then rolled them out as a Mexican-spiced take on a familiar chicken tender. For workers, that kind of launch can help keep traffic steady, but it also adds another product to prep, expo, and sell during a rush.

El Pollo Loco’s innovation pipeline has widened fast. In March, the company said it was testing five new menu items across about 60 restaurants in California and Utah: Honey Chipotle BBQ, Loco Tenders, Loaded Quesadillas, a Crispy Grilled Chicken Sandwich, and Horchata Coffee Drinks. Restaurant Business also noted earlier innovation such as Mango Habanero Fire-Grilled Chicken in 2025, along with Queso Crunch Burrito Bowls, Double Chicken Street Corn Bowls, and the Double Pollo Salad. Each new item can help keep a menu fresh, but each also brings new SKUs, new prep sheets, and more training for cooks and cashiers who have to explain the offer quickly at the register.

That tension is what makes El Pollo Loco’s numbers worth watching on the floor. Since Liz Williams took over as CEO in early 2024, the chain has pushed simplification alongside growth, and Nation’s Restaurant News reported in November 2025 that margins had climbed from 13.2% in 2022 to 18.3% in the third quarter of 2025, with an 18%-plus target beyond 2025. The company said it focused on simplifying chicken marination, improving training, and adding holding cabinets that save labor. If the current strategy works, crews could get steadier volume without the chaos of constant reinvention. If it does not, the menu could become another speed problem for stores already trying to keep service moving.