El Pollo Loco

LOCO

Market cap $282M

COSTA MESA, Calif., Oct. 16, 2025 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (“El Pollo Loco”) (NASDAQ: LOCO) today announced that it will host a conference call to discuss its third quarter 2025 financial results on Thursday, October 30, 2025, at 4:30 PM Eastern Time.

Fire-grilled chicken brand expands footprint during its 50th anniversary year with new Colorado Springs location Fire-grilled chicken brand expands footprint during its 50th anniversary year with new Colorado Springs location

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El Pollo Loco Holdings, Inc. ( LOCO ) delivered encouraging signs in second-quarter 2025 as traffic trends turned positive, indicating its strategic initiatives may be gaining traction. Revenues were $125.8 million, up 3% year over year, while adjusted earnings per share of 28 cents exceeded estimates.

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.

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.

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El Pollo Loco has shown relative stability in a tough macro environment, outperforming peers despite modest same-restaurant sales declines. Shares are down ~20% over the past year, creating an attractive value-buying opportunity at current low valuation multiples near 12x P/E (about half of where most restaurant peers trade). The company is expanding its higher-margin franchise revenue stream, maintaining positive sales growth and improving cost leverage.

The consensus price target hints at a 31.7% 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.

El Pollo Loco's traffic and sales are lagging QSR peers, but restaurant-level margins and cost controls are improving above guidance. Menu innovation, marketing tweaks, and a franchised, asset-light expansion—especially outside California—are set to drive growth and resilience. Unit-level economics are strengthening, with new models offering attractive payback periods and IRRs, supporting accelerated store openings in FY 2025-26.