El Pollo Loco Holdings, Inc. announced its first quarter 2025 financial results on May 1, 2025. Company-operated restaurant revenue increased to $98.4 million from $97.2 million in Q1 2024, driven by a 0.6% increase in company-operated comparable restaurant revenue and $0.9 million from new restaurant openings. This was partially offset by a $0.4 million decrease from one restaurant sold.
Company-operated comparable restaurant sales increased by 0.6%, resulting from a 4.6% increase in average check size due to menu price adjustments, partially offset by a 3.8% decrease in transactions. Franchise revenue increased by 16.2% to $13.2 million, primarily due to franchisee IT pass-through revenue related to a new Point of Sale (POS) system rollout and four new franchise openings, despite a 1.3% decrease in franchise comparable sales.
Restaurant contribution decreased to $15.8 million, or 16.0% of company-operated restaurant revenue, from $17.1 million, or 17.6% in Q1 2024. This decline was largely due to the impact of higher wages from the April 2024 California minimum wage increase to $20.00 per hour and higher operating costs, partially offset by menu price increases and operating efficiencies.
Net income for Q1 2025 was $5.5 million, or $0.19 per diluted share, compared to $5.9 million, or $0.19 per diluted share in Q1 2024. Adjusted net income was $5.5 million, or $0.19 per diluted share, compared to $6.8 million, or $0.22 per diluted share in Q1 2024. The company's Share Repurchase Program was terminated on March 31, 2025, after repurchasing 159,750 shares for approximately $1.8 million during the quarter.
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