El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) Given Average Rating of "Hold" by Analysts

Key Points

• El Pollo Loco has a consensus analyst rating of “Hold”, with five analysts rating it hold and two rating it buy. The average 12-month price target is about $14.88.
• The company recently beat expectations in its latest earnings report, posting $0.28 EPS versus the $0.22 estimate and revenue of $126.18 million versus the $122.02 million forecast. It also announced a $40 million share buyback plan, which can signal management confidence in the stock.
• Insider and institutional activity was mixed: major shareholder Sardar Biglari sold 22,600 shares, while hedge funds have generally increased or maintained sizable positions. El Pollo Loco is also expanding its restaurant footprint, including new openings in Idaho and Lubbock, Texas.

Shares of El Pollo Loco Holdings, Inc. (NASDAQ:LOCO - Get Free Report) have earned an average recommendation of "Hold" from the seven ratings firms that are covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $14.8750.

Several research analysts have recently commented on the company. Benchmark boosted their price objective on El Pollo Loco from $14.00 to $18.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Weiss Ratings cut shares of El Pollo Loco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. Truist Financial lifted their price objective on El Pollo Loco from $12.00 to $13.00 and gave the stock a "hold" rating in a report on Friday, March 13th. William Blair reiterated a "market perform" rating on shares of El Pollo Loco in a research report on Friday, March 13th. Finally, DA Davidson increased their price objective on El Pollo Loco from $13.00 to $15.00 and gave the company a "neutral" rating in a research note on Monday, May 11th.

Insiders Place Their Bets

In other El Pollo Loco news, major shareholder Sardar Biglari sold 22,600 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $16.91, for a total transaction of $382,166.00. Following the completion of the sale, the insider owned 3,777,400 shares of the company's stock, valued at $63,875,834. This represents a 0.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Over the last three months, insiders have sold 222,600 shares of company stock worth $3,715,166. Corporate insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On El Pollo Loco

A number of hedge funds have recently modified their holdings of the company. Hillsdale Investment Management Inc. increased its stake in shares of El Pollo Loco by 59.0% during the fourth quarter. Hillsdale Investment Management Inc. now owns 571,296 shares of the restaurant operator's stock valued at $5,976,000 after buying an additional 211,900 shares during the period. Assenagon Asset Management S.A. boosted its holdings in El Pollo Loco by 648.3% in the first quarter. Assenagon Asset Management S.A. now owns 152,767 shares of the restaurant operator's stock valued at $2,117,000 after acquiring an additional 132,351 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in El Pollo Loco by 11,403.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 115,037 shares of the restaurant operator's stock valued at $1,203,000 after acquiring an additional 114,037 shares in the last quarter. Corient Private Wealth LLC purchased a new position in El Pollo Loco during the 4th quarter valued at $945,000. Finally, AXQ Capital LP purchased a new position in El Pollo Loco during the 4th quarter valued at $107,000. Hedge funds and other institutional investors own 81.28% of the company's stock.

El Pollo Loco News Summary

Here are the key news stories impacting El Pollo Loco this week:

• Positive Sentiment: El Pollo Loco is expanding its restaurant footprint, with first-time openings in Idaho and a new location in Lubbock, Texas, plus opening-day promotions that could help raise brand awareness and drive sales. El Pollo Loco Opens in Idaho for First Time
• Positive Sentiment: Freedom Capital reportedly issued bullish ratings on El Pollo Loco, adding to the view that the stock may still have upside after its recent operating improvement. Dutch Bros, First Watch, and El Pollo Loco land bull ratings from Freedom Capital
• Neutral Sentiment: Recent commentary is questioning how to trade LOCO after first-quarter earnings, but the company had already posted a solid beat on EPS and revenue in its last report, so the market may be weighing valuation rather than fundamentals alone. El Pollo Loco (LOCO): Buy, sell, or hold post Q1 earnings?
• Neutral Sentiment: The company’s recent earnings and buyback authorization remain supportive longer-term signals, including a 40 million dollar repurchase plan that may help offset share-price weakness. Winner Winner, Chicken Dinner: El Pollo Loco’s Turnaround Recipe
• Negative Sentiment: Major shareholder Sardar Biglari sold additional shares this week, following earlier large sales, which can pressure sentiment because investors often read insider selling as a sign of reduced confidence or profit-taking. Insider Selling: El Pollo Loco NASDAQ: LOCO Major Shareholder Sells 22,600 Shares

El Pollo Loco Price Performance

NASDAQ:LOCO opened at $16.68 on Friday. The firm has a market capitalization of $507.91 million, a price-to-earnings ratio of 17.02 and a beta of 0.78. El Pollo Loco has a 52-week low of $8.98 and a 52-week high of $17.40. The stock has a fifty day moving average of $14.60 and a 200 day moving average of $12.76. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.32 and a current ratio of 0.34.

El Pollo Loco (NASDAQ:LOCO - Get Free Report) last announced its earnings results on Thursday, May 7th. The restaurant operator reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.06. El Pollo Loco had a return on equity of 11.04% and a net margin of 5.87%.The business had revenue of $126.18 million for the quarter, compared to analyst estimates of $122.02 million. On average, research analysts expect that El Pollo Loco will post 0.95 EPS for the current fiscal year.

El Pollo Loco announced that its board has approved a share buyback plan on Thursday, May 28th that permits the company to buyback $40.00 million in shares. This buyback authorization permits the restaurant operator to repurchase up to 9.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its stock is undervalued.

About El Pollo Loco

El Pollo Loco NASDAQ: LOCO is a fast-casual restaurant chain specializing in Mexican-style fire-grilled chicken and complementary menu offerings. The company's signature product is its marinated, flame-grilled chicken, which is prepared in an open-flame rotisserie and served in a variety of formats including tacos, burritos, bowls and salads. In addition to its core chicken offerings, El Pollo Loco menu items feature fresh-made salsas, guacamole, sides such as charro beans and fresh tortillas, as well as a selection of beverages and desserts.

Founded in 1975 in Guasave, Sinaloa, Mexico, by Juan Francisco Ochoa, the concept expanded into the United States in 1980 with its first U.S.

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