El Pollo Loco Holdings, Inc. (NASDAQ: LOCO)

El Pollo Loco Holdings, Inc. operates a chain of limited service restaurants specializing in fire-grilled citrus-marinated chicken, with a menu inspired by Mexican flavors. The company operates in the limited service restaurant (LSR) market segment, offering a blend of fast-casual dining experience and quick-service restaurant (QSR) convenience. El Pollo Loco's primary business activities include operating and franchising restaurants that serve a variety of Mexican-inspired entrees, such as burritos, tostadas, bowls, and salads, all featuring their signature fire-grilled chicken. As of December 31, 2025, the company had a total of 503 domestic restaurants, comprising 175 company-operated and 328 franchised locations, primarily situated in California but also extending to Arizona, Nevada, Texas, Utah, Colorado, Washington, and Louisiana. Additionally, the company had 8 licensed restaurants in the Philippines.

El Pollo Loco generates revenue through retail sales of food and beverages at both company-operated and franchised restaurants. The company's primary products include signature Fire-Grilled Chicken Meals and Family Meals, Double Chicken Tostada, the Original Pollo Bowl®, Guacamole Chicken Burrito, and Double Pollo Salads. These offerings cater to a broad customer base seeking convenient, quality meals at reasonable prices. The company's menu appeals to consumers across various socio-economic backgrounds, driving balanced sales throughout the day, including lunch and dinner. The distinctive menu with high-quality chicken entrees is designed to attract a wide range of customers, from individuals to larger groups, and families looking for affordable and convenient meal solutions.

• Company-Operated Restaurants: El Pollo Loco operates 175 company-owned restaurants, which are integral to the company's revenue stream. These restaurants are located primarily in California but also extend to other states. The company-operated segment allows El Pollo Loco to maintain direct control over operations, ensuring consistency in food quality, service, and brand standards. This segment caters to customers seeking a consistent dining experience with the assurance of quality and freshness that comes with direct company oversight.

• Franchised Restaurants: The company has 328 franchised restaurants, which are owned and operated by franchisees. This segment allows El Pollo Loco to expand its brand presence with a relatively minimal capital commitment. Franchisees benefit from the established brand, proven business model, and ongoing support from the company. This segment caters to customers in various markets, leveraging the local expertise of franchisees to meet regional preferences and demands.

• Licensed Restaurants: El Pollo Loco has 8 licensed restaurants in the Philippines. This segment represents the company's international expansion efforts, allowing it to tap into new markets and diversify its revenue streams. The licensed model enables local operators to leverage the El Pollo Loco brand and business model while adhering to local market conditions and regulations.

El Pollo Loco operates within the highly competitive and fragmented restaurant industry, facing competition from a variety of locally-owned restaurants and national and regional chains. Key competitors include other fast-casual and quick-service restaurant concepts that offer dine-in, carry-out, and delivery services. The company's competitive advantages lie in its unique menu with broad appeal, Mexican-inspired freshly-prepared fire-grilled chicken and entrees, and an operations infrastructure that allows for real-time control, fast feedback, and innovation. The company's signature product, citrus-marinated fire-grilled chicken, serves as the foundation of its distinctive menu, offering a quality alternative to traditional fast food. El Pollo Loco's positioning appeals to a broad customer base, crossing over traditional age, ethnic, and income demographics, giving consumers the best of both the fast-casual and QSR segments. The company's focus on quality, flavor, and convenience, along with its strong unit economics and experienced leadership, positions it well to drive transaction growth and maintain a competitive edge in the industry.

El Pollo Loco's customer base is diverse, appealing to consumers across various socio-economic backgrounds. The company's menu, featuring high-quality chicken entrees and Mexican-inspired flavors, attracts a wide range of customers, from individuals to larger groups and families. The convenience and quality offered by El Pollo Loco make it a popular choice for customers seeking affordable and convenient meal solutions. The company's focus on customer service and hospitality further enhances its appeal, ensuring a positive dining experience for its customers.