El Pollo Loco

LOCO

Market cap $328M

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The average of price targets set by Wall Street analysts indicates a potential upside of 33.5% in El Pollo Loco (LOCO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

LOCO, OPFI, EIX, SCSC and ZION stand out with attractive EV-to-EBITDA ratios and strong earnings outlooks.

The consensus price target hints at a 35.9% upside potential for El Pollo Loco (LOCO). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

El Pollo Loco stands out in a challenged restaurant sector, posting strong Q3 results and planning accelerated unit expansion despite weak comps. LOCO's operational overhaul and menu innovation are driving margin expansion, even as industry-wide consumer spending remains soft. At current low valuations, LOCO offers a compelling value opportunity, trading at significant discounts to peers while ramping up its development pipeline.

El Pollo Loco (LOCO) is showing strong operational momentum, outperforming California QSR traffic and executing a turnaround with menu innovation and revamped loyalty programs. LOCO's restaurant-level margins reached 18.3%, with cost controls and low build costs supporting an aggressive expansion plan, especially outside California. Despite a revenue miss, EBITDA and EPS grew faster than sales, and franchise growth is accelerating, positioning LOCO for nationwide expansion.

El Pollo Loco Holdings, Inc. ( LOCO ) Q3 2025 Earnings Call October 30, 2025 4:30 PM EDT Company Participants Ira Fils - Chief Financial Officer Elizabeth Williams - CEO & Director Conference Call Participants Jake Bartlett - Truist Securities, Inc., Research Division Andrew Barish - Jefferies LLC, Research Division Jeremy Hamblin - Craig-Hallum Capital Group LLC, Research Division Presentation Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the El Pollo Loco Third Quarter 2025 Earnings Conference Call.

Although the revenue and EPS for El Pollo Loco (LOCO) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.