El Pollo Loco Holdings, Inc. reported its second quarter 2025 financial results on July 31, 2025. Total revenue increased 3.0% year-over-year to $125.8 million. Company-operated restaurant revenue grew 2.0% to $104.3 million, driven by a 1.2% increase in comparable restaurant sales.
Company-operated comparable restaurant sales increased by 1.2%, consisting of a 1.5% increase in average check size due to menu price adjustments, partially offset by a 0.3% decrease in transactions. Franchise revenue increased 14.8% to $13.4 million, primarily due to $1.6 million in franchisee IT pass-through revenue and five new franchise openings, despite a 1.1% decrease in franchise comparable sales. System-wide traffic increased by 0.8%.
Restaurant contribution improved to $19.9 million, or 19.1% of company-operated restaurant revenue, up from 18.6% in Q2 2024, driven by higher menu prices and better operating efficiencies. Net income for the quarter was $7.1 million, or $0.24 per diluted share, compared to $7.6 million, or $0.25 per diluted share in Q2 2024. Adjusted net income was $8.2 million, or $0.28 per diluted share, compared to $7.8 million, or $0.26 per diluted share in Q2 2024.
General and administrative expenses increased to $13.5 million from $11.8 million in Q2 2024, primarily due to higher stock compensation expenses, special legal and professional fees related to shareholder activism, and restructuring costs. As of June 25, 2025, outstanding debt was $69.0 million with $9.0 million in cash and cash equivalents, after a net paydown of $2.0 million on its revolving credit facility. The Share Repurchase Program was terminated on March 31, 2025.
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