El Pollo Loco (NASDAQ:LOCO) Issues Earnings Results

Key Points

• El Pollo Loco reported quarterly EPS of $0.24, matching estimates, while revenue of $126.31 million fell short of the $127.03 million consensus.
• Sales momentum continued: same-store sales rose 5% in Q3, and management expects roughly 4.5% comparable-sales growth for 2026. Digital sales grew to 31% of system sales, and the company plans to accelerate restaurant openings.
• Profitability showed pressure despite sales growth: adjusted EBITDA declined to $17.1 million from $17.4 million a year earlier, and adjusted EPS fell from $0.27 to $0.24 amid higher operating and G&A costs.

El Pollo Loco (NASDAQ:LOCO - Get Free Report) posted its quarterly earnings results on Thursday. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.24, FiscalAI reports. The company had revenue of $126.31 million during the quarter, compared to the consensus estimate of $127.03 million. El Pollo Loco had a net margin of 6.96% and a return on equity of 10.87%.

Here are the key takeaways from El Pollo Loco's conference call:

• Sales momentum continued: Systemwide same-store sales rose 5% in Q3, with traffic up 0.7%; comps were up 3.6% in Q4 through October 28. Management expects full-year 2026 comparable sales growth of approximately 4.5%, though Q3 growth was driven mostly by higher average checks.
• Digital, loyalty and menu innovation are supporting engagement: Digital sales reached 31% of system sales, up from 27% a year ago, while Loco Rewards membership grew nearly 11%. Management said new products and loyalty promotions helped attract guests and increase visits.
• Restaurant expansion is gathering pace: El Pollo Loco had opened 14 restaurants by the call and still expects 18–20 openings in 2026, followed by 25–30 in 2027. The company also announced plans for 15 restaurants in the New York area over five years, with the first targeted for mid-2027.
• Earnings and expense pressures temper the growth story: Q3 adjusted EBITDA declined to $17.1 million from $17.4 million, and diluted adjusted EPS fell to $0.24 from $0.27. Restaurant contribution margin was 18.4%, while higher G&A and operating costs remain pressures; full-year margin guidance is 18.25%–18.5%.

El Pollo Loco Price Performance

LOCO traded down $0.01 during midday trading on Thursday, reaching $16.46. 514,652 shares of the company's stock were exchanged, compared to its average volume of 263,726. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.41 and a quick ratio of 0.38. The stock has a market capitalization of $500.88 million, a PE ratio of 14.97 and a beta of 0.85. The business's 50-day moving average price is $15.01 and its 200 day moving average price is $14.17. El Pollo Loco has a 1-year low of $9.99 and a 1-year high of $17.40.

Insider Activity

In other news, major shareholder Sardar Biglari sold 25,556 shares of the stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $16.50, for a total value of $421,674.00. Following the sale, the insider directly owned 3,513,405 shares in the company, valued at $57,971,182.50. This represents a 0.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 3.00% of the stock is owned by company insiders.

Analyst Ratings Changes

LOCO has been the topic of a number of research reports. Weiss Ratings upgraded El Pollo Loco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 2nd. Benchmark lifted their price objective on El Pollo Loco from $18.00 to $21.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Wall Street Zen cut El Pollo Loco from a "buy" rating to a "hold" rating in a report on Saturday, August 15th. DA Davidson boosted their target price on El Pollo Loco from $15.00 to $17.00 and gave the stock a "neutral" rating in a research report on Monday, August 10th. Finally, Roth Capital initiated coverage on El Pollo Loco in a report on Friday, October 9th. They issued a "buy" rating and a $22.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $17.30.

About El Pollo Loco

El Pollo Loco Holdings, Inc NASDAQ: LOCO operates and franchises quick-service restaurants specializing in Mexican-inspired food and citrus-marinated, fire-grilled chicken. Its menu includes chicken meals, burritos, tacos, quesadillas, salads, bowls and family meals, along with a variety of sides, beverages and desserts.

The company was founded in 1975 in Guasave, Sinaloa, Mexico, and expanded into the United States in 1980 with its first restaurant in Los Angeles. El Pollo Loco primarily serves customers through restaurants in the western and southwestern United States, particularly in California, Arizona, Nevada, Colorado and Texas.

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