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El Pollo Loco has every right to go a little loco over its second-quarter numbers. Liz Williams became CEO in March 2024 with a three-year turnaround plan focused on brand awareness and unit-level economics. Heading into year three, the chain is running ahead of pace, according to Nation’s Restaurant News.
Second-quarter same-store sales rose 3.9%, beating Wall Street’s expectations. Restaurant contribution margin hit 19.5%, up from 18.6% a year earlier and near the top of Williams’ original 18% to 20% target range, even with rising produce costs working against her.
A lot of that comes down to new menu items. Loco Tenders got new, younger customers to try the brand for the first time, and performed especially well in snacking and late-night orders. Loaded Quesadillas, launched in June, added a value-priced option under $10. A new lineup of coffee drinks, including horchata, iced coffee and cold foam, is aimed at filling an afternoon slot Williams says the brand has been missing.
The chain is also expanding faster than planned, with 18 to 20 new restaurants expected this year, nearly double last year’s pace. In June, Idaho became the 10th state to go Loco.