El Pollo Loco (NASDAQ:LOCO) Upgraded at Freedom Capital

Key Points

• Freedom Capital upgraded El Pollo Loco to a strong-buy, adding to a generally bullish analyst backdrop. The stock now has a consensus rating of Moderate Buy with an average target price of $14.88.
• Recent earnings beat expectations, with El Pollo Loco reporting $0.28 EPS versus the $0.22 estimate and revenue of $126.18 million versus the $122.02 million forecast. Analysts expect the company to earn $0.95 per share for the full year.
• The company also announced a $40 million share repurchase program, which could support the stock by signaling management believes shares are undervalued. However, the article notes continued insider selling, including a recent sale by major shareholder Sardar Biglari.

El Pollo Loco (NASDAQ:LOCO - Get Free Report) was upgraded by equities research analysts at Freedom Capital to a "strong-buy" rating in a report issued on Wednesday,Zacks.com reports.

Several other research firms have also weighed in on LOCO. Benchmark lifted their price objective on El Pollo Loco from $14.00 to $18.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Weiss Ratings lowered El Pollo Loco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. Truist Financial lifted their target price 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 note on Friday, March 13th. Finally, Wall Street Zen upgraded shares of El Pollo Loco from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $14.88.

El Pollo Loco Trading Down 3.0%

LOCO opened at $16.68 on Wednesday. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.34 and a quick ratio of 0.32. El Pollo Loco has a fifty-two week low of $8.98 and a fifty-two week high of $17.40. The company's 50 day moving average price is $14.60 and its two-hundred day moving average price is $12.76. 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 (NASDAQ:LOCO - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The restaurant operator reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.06. The company had revenue of $126.18 million during the quarter, compared to the consensus estimate of $122.02 million. El Pollo Loco had a return on equity of 11.04% and a net margin of 5.87%. As a group, research analysts predict that El Pollo Loco will post 0.95 earnings per share for the current year.

El Pollo Loco declared that its Board of Directors has initiated a share repurchase plan on Thursday, May 28th that allows the company to repurchase $40.00 million in shares. This repurchase authorization allows the restaurant operator to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at El Pollo Loco

In other news, major shareholder Sardar Biglari sold 22,600 shares of the firm's stock in a transaction that occurred 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 in the company, valued at $63,875,834. This trade represents a 0.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 222,600 shares of company stock worth $3,715,166 in the last three months. Company insiders own 3.00% of the company's stock.

Institutional Investors Weigh In On El Pollo Loco

Institutional investors have recently made changes to their positions in the stock. Lazard Asset Management LLC lifted its position in El Pollo Loco by 0.8% in the first quarter. Lazard Asset Management LLC now owns 110,667 shares of the restaurant operator's stock valued at $1,534,000 after purchasing an additional 895 shares during the last quarter. SG Americas Securities LLC increased its stake in shares of El Pollo Loco by 11.1% in the fourth quarter. SG Americas Securities LLC now owns 12,212 shares of the restaurant operator's stock worth $128,000 after buying an additional 1,217 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of El Pollo Loco by 85.0% in the second quarter. Tower Research Capital LLC TRC now owns 3,862 shares of the restaurant operator's stock worth $43,000 after buying an additional 1,774 shares during the period. Sei Investments Co. raised its holdings in El Pollo Loco by 11.5% during the 3rd quarter. Sei Investments Co. now owns 20,413 shares of the restaurant operator's stock valued at $198,000 after buying an additional 2,100 shares during the last quarter. Finally, Panagora Asset Management Inc. raised its holdings in El Pollo Loco by 6.7% during the 4th quarter. Panagora Asset Management Inc. now owns 35,492 shares of the restaurant operator's stock valued at $371,000 after buying an additional 2,214 shares during the last quarter. 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

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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