El Pollo Loco (NASDAQ:LOCO - Get Free Report) announced its quarterly earnings data on Thursday. The restaurant operator reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.02, FiscalAI reports. The firm had revenue of $129.57 million for the quarter, compared to analysts' expectations of $130.29 million. El Pollo Loco had a return on equity of 11.04% and a net margin of 5.87%.
Here are the key takeaways from El Pollo Loco's conference call:
- Q2 performance exceeded the company’s prior trajectory: systemwide same-store sales rose 3.9%, restaurant-level margin improved to 19.5% from 19.1%, and adjusted EBITDA increased to $19.1 million.
- Management raised its 2026 outlook, targeting 3.5%-4.5% comparable-store sales growth and $68-$70 million of adjusted EBITDA, while reporting third-quarter sales growth of 5.8% through July 29.
- Menu innovation and digital engagement are driving growth, with Loco Tenders attracting younger and new customers, Loaded Quesadillas gaining early traction, and digital sales rising 13% to approximately 28% of system sales.
- El Pollo Loco remains on track to open 18-20 restaurants in 2026, including expansion into Idaho and continued growth outside California; management said newer markets are opening above system averages and franchise interest is building nationally.
- Commodity pressure remains a risk, particularly from produce, packaging, oil, and fuel costs; food and paper expense rose 90 basis points year over year, while the amended credit facility will increase the borrowing spread by about 50 basis points.
El Pollo Loco Stock Performance
El Pollo Loco stock traded down $0.62 during midday trading on Thursday, reaching $16.37. 383,819 shares of the stock traded hands, compared to its average volume of 206,006. El Pollo Loco has a fifty-two week low of $8.98 and a fifty-two week high of $17.40. The company has a current ratio of 0.34, a quick ratio of 0.32 and a debt-to-equity ratio of 0.15. The firm has a market cap of $498.47 million, a price-to-earnings ratio of 16.70 and a beta of 0.78. The firm has a fifty day moving average price of $15.93 and a two-hundred day moving average price of $13.73.
Wall Street Analyst Weigh In
Several equities research analysts recently weighed in on the stock. Freedom Capital upgraded shares of El Pollo Loco to a "strong-buy" rating in a research note on Wednesday, July 1st. Benchmark upped their target price on El Pollo Loco from $14.00 to $18.00 and gave the company a "buy" rating in a report on Friday, May 8th. DA Davidson increased their price target on El Pollo Loco from $13.00 to $15.00 and gave the stock a "neutral" rating in a research report on Monday, May 11th. Finally, Weiss Ratings raised El Pollo Loco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $14.88.
Read Our Latest Stock Analysis on El Pollo Loco
El Pollo Loco declared that its board has initiated a share repurchase plan on Thursday, May 28th that permits the company to buyback $40.00 million in shares. This buyback authorization permits the restaurant operator to purchase up to 9.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.
Key Headlines Impacting El Pollo Loco
Here are the key news stories impacting El Pollo Loco this week:
- Positive Sentiment: Adjusted earnings exceeded expectations. El Pollo Loco reported second-quarter EPS of $0.30, ahead of analyst estimates ranging from $0.28 to $0.29 and up from $0.28 a year earlier. The result indicates some earnings resilience despite ongoing operating pressures. El Pollo Loco Holdings Tops Q2 Earnings Estimates
- Neutral Sentiment: Revenue slightly missed forecasts. Quarterly revenue was $129.57 million versus the $130.29 million consensus estimate. El Pollo Loco posted a 5.87% net margin and 11.04% return on equity, while full-year analyst expectations remain approximately $0.95 in EPS. El Pollo Loco Announces Second Quarter 2026 Financial Results
- Neutral Sentiment: Valuation and analyst views are mixed. El Pollo Loco has a “Moderate Buy” consensus rating, but the reported average price target of $14.88 is below the stock’s recent trading level. Prior targets range from $15 to $18, suggesting limited upside at the current valuation for some analysts. El Pollo Loco analyst data
- Negative Sentiment: Major shareholder Sardar Biglari continued to reduce his position. Biglari sold 80,000 shares for approximately $1.35 million on August 5 and another 20,000 shares for about $335,000 on August 3. The transactions add to a series of recent sales and may pressure investor sentiment by signaling reduced insider conviction or creating additional share supply. El Pollo Loco major shareholder sales
Insider Buying and Selling at El Pollo Loco
In other news, major shareholder Sardar Biglari sold 80,000 shares of El Pollo Loco stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $16.90, for a total transaction of $1,352,000.00. Following the sale, the insider owned 66,422 shares of the company's stock, valued at approximately $1,122,531.80. The trade was a 54.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders sold a total of 557,703 shares of company stock worth $9,408,738 over the last quarter. Insiders own 3.00% of the company's stock.
Institutional Trading of El Pollo Loco
Several hedge funds have recently added to or reduced their stakes in LOCO. Goldman Sachs Group Inc. lifted its stake in shares of El Pollo Loco by 93.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,037,293 shares of the restaurant operator's stock worth $10,850,000 after acquiring an additional 502,378 shares during the period. Fund 1 Investments LLC increased its stake in shares of El Pollo Loco by 193.4% during the fourth quarter. Fund 1 Investments LLC now owns 745,140 shares of the restaurant operator's stock valued at $7,794,000 after acquiring an additional 491,184 shares during the period. Millennium Management LLC raised its holdings in El Pollo Loco by 197.4% during the first quarter. Millennium Management LLC now owns 680,391 shares of the restaurant operator's stock worth $7,008,000 after purchasing an additional 451,575 shares in the last quarter. Two Sigma Investments LP raised its holdings in El Pollo Loco by 788.2% during the third quarter. Two Sigma Investments LP now owns 214,123 shares of the restaurant operator's stock worth $2,077,000 after purchasing an additional 190,015 shares in the last quarter. Finally, Monimus Capital Management LP acquired a new stake in El Pollo Loco in the second quarter worth approximately $1,365,000. Institutional investors own 81.28% of the company's stock.
El Pollo Loco Company Profile
(
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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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