LOCO

El Pollo Loco Holdings, Inc.

Fundamental data last updated:August 13, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Restaurants

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

El Pollo Loco Holdings, Inc., through its subsidiary, El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. As of May 04, 2022, the company operated 480 restaurants comprising 189 company-operated and 291 franchised restaurants located in California, Nevada, Arizona, Texas, Utah, and Louisiana. It also licenses one restaurant in the Philippines. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1975 and is headquartered in Costa Mesa, California.

 


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VALUATION

P/E

15.13

Market Cap ($M USD)

$456.83M

Forward P/E

13.84

PEG

1.49

PRICE TO SALES

0.92

PRICE TO BOOK

1.46

EV / EBITDA

11.08

5-Year Average P/E

Free Cash Flow Yield

5.88%

DCF Value

$10.21

Graham Number

$15.15

Price to FCF

17.01

EV to FCF

25.54

Earnings Yield

6.61%

FCF Yield

5.88%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.99

Next Year EPS Growth Estimate

$1.08

Next Year Revenue Growth Estimate

$524.22M

Return on Equity (ROE)

10.14%

FREE CASH FLOW

Operating Margin

9.33%

Debt-to-Equity

0.82

Piotroski F-Score

8

Altman Z-Score

1.91

Return on Invested Capital (ROIC)

8.69%

Current Ratio

0.34

Quick Ratio

0.32

Net Debt to EBITDA

3.70

Interest Coverage

11.52

Gross Profit margin

24.99%

FCF PER SHARE

$0.91

REVENUE PER SHARE

$16.90

Analyze LOCO on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to have mispriced LOCO, trading above its DCF value and Graham Number, suggesting overvaluation. The Forward P/E of 12.92 indicates moderate growth expectations, yet the Earnings Yield of 7.08% suggests a reasonable return relative to its price. However, the Altman Z-score of 1.90 raises red flags about financial distress risk. Despite these concerns, the company’s valuation metrics hint at a cautious optimism, but not without significant risk.

AI Exposure / Tech Reliance

In the restaurant industry, LOCO's adaptability to AI and tech shifts is crucial. While not a tech company, leveraging AI for supply chain optimization and customer engagement could enhance efficiency. Its resilience will depend on how well it integrates these technologies into its operations.

The Bull Case

For a value or GARP investor, LOCO presents an intriguing opportunity. With a solid ROIC of 8.69% and a Piotroski F-Score of 7, the company demonstrates strong operational efficiency and financial health. The FCF Yield of 6.30% and robust operating margin of 9.33% suggest effective capital management and pricing power. These metrics indicate a company capable of generating consistent cash flow and delivering shareholder value.

The Bear Case

Despite some strengths, LOCO faces structural risks. The low Current Ratio of 0.34 signals potential liquidity issues, while the Price/Book ratio of 1.36 suggests limited asset backing. Trading near its 52-week high, the stock appears technically overextended. Additionally, the EV to FCF ratio of 22.77 highlights potential overvaluation concerns, making it a risky bet for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$14.25

Institutional Ownership %

1-Year Beta

0.70

Insider Buying % (6 Mo)

Distance to 52-Week High

6.00%

Distance to 52-Week Low

40.10%

EARNINGS SURPRISE %

27.27%

50-DAY SMA

$13.82

200-DAY SMA

$11.36

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.