Marshall Pittman's questions to El Pollo Loco Holdings Inc (LOCO) leadership • Q2 2025
Question
Marshall Pittman of Jefferies asked about the pricing outlook for the second half of the year and the company's confidence in taking further increases. He also questioned if the full-year margin guidance might be conservative given the strong Q2 results.
Answer
CFO Ira Fils confirmed that a planned price increase was moved up, resulting in expected pricing of ~2.5% in Q3 and ~2.7% in Q4. He emphasized that these increases are surgical, such as on combos, to balance increased discounting. Fils reiterated that the full-year margin guidance of 17.25% to 17.75% is realistic, citing strong visibility on commodities and limited tariff exposure, while noting the team is always working to beat targets.