El Pollo Loco (NASDAQ:LOCO) Posts Earnings Results, Beats Expectations By $0.02 EPS

El Pollo Loco (NASDAQ:LOCO) posted its quarterly earnings results on Thursday. The restaurant operator reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.02, FiscalAI reports. The firm had revenue of $129.57 million during the quarter, compared to the consensus estimate of $130.29 million. El Pollo Loco had a net margin of 5.87% and a return on equity of 11.04%.

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

LOCO traded down $0.68 on Friday, reaching $15.70. The stock had a trading volume of 183,106 shares, compared to its average volume of 296,031. The business’s 50-day moving average price is $15.93 and its two-hundred day moving average price is $13.73. The company has a current ratio of 0.34, a quick ratio of 0.32 and a debt-to-equity ratio of 0.15. El Pollo Loco has a 12-month low of $8.98 and a 12-month high of $17.40. The company has a market cap of $477.91 million, a P/E ratio of 15.98 and a beta of 0.78.

El Pollo Loco announced that its board has approved a stock buyback plan on Thursday, May 28th that permits the company to buyback $40.00 million in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 9.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Freedom Capital upgraded shares of El Pollo Loco to a “strong-buy” rating in a research report on Wednesday, July 1st. Weiss Ratings raised El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, July 15th. Benchmark reiterated a “buy” rating on shares of El Pollo Loco in a research note on Friday. Finally, DA Davidson boosted their price objective on El Pollo Loco from $13.00 to $15.00 and gave the company a “neutral” rating in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $14.88.

Insider Transactions at El Pollo Loco

In other news, major shareholder Sardar Biglari sold 132,421 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $17.27, for a total value of $2,286,910.67. Following the completion of the sale, the insider directly owned 3,644,979 shares in the company, valued at $62,948,787.33. The trade was a 3.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 557,703 shares of company stock worth $9,408,738 in the last quarter. Corporate insiders own 3.00% of the company’s stock.

Institutional Trading of El Pollo Loco

Institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its holdings in El Pollo Loco by 4.8% in the 1st quarter. AQR Capital Management LLC now owns 287,143 shares of the restaurant operator’s stock valued at $2,958,000 after acquiring an additional 13,095 shares during the last quarter. Millennium Management LLC lifted its holdings in El Pollo Loco by 197.4% in the first quarter. Millennium Management LLC now owns 680,391 shares of the restaurant operator’s stock valued at $7,008,000 after acquiring an additional 451,575 shares during the last quarter. Empowered Funds LLC grew its position in El Pollo Loco by 7.4% in the first quarter. Empowered Funds LLC now owns 188,519 shares of the restaurant operator’s stock worth $1,942,000 after acquiring an additional 12,964 shares during the period. Jane Street Group LLC purchased a new stake in El Pollo Loco in the first quarter valued at $221,000. Finally, Creative Planning acquired a new position in shares of El Pollo Loco in the 2nd quarter valued at $240,000. Institutional investors and hedge funds own 81.28% of the company’s stock.

El Pollo Loco Company Profile

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.