El Pollo Loco (NASDAQ:LOCO) Releases Quarterly Earnings Results, Meets Estimates

El Pollo Loco (NASDAQ:LOCO) posted its earnings results on Thursday. The restaurant operator reported $0.24 earnings per share for the quarter, hitting the consensus estimate of $0.24, FiscalAI reports. El Pollo Loco had a return on equity of 10.87% and a net margin of 6.96%. The firm had revenue of $126.31 million for the quarter, compared to analyst estimates of $127.03 million.

Here are the key takeaways from El Pollo Loco’s conference call:

• Sales momentum continued: Systemwide same-store sales rose 5% in Q3, with traffic up 0.7%; comps were up 3.6% in Q4 through October 28. Management expects full-year 2026 comparable sales growth of approximately 4.5%, though Q3 growth was driven mostly by higher average checks.
• Digital, loyalty and menu innovation are supporting engagement: Digital sales reached 31% of system sales, up from 27% a year ago, while Loco Rewards membership grew nearly 11%. Management said new products and loyalty promotions helped attract guests and increase visits.
• Restaurant expansion is gathering pace: El Pollo Loco had opened 14 restaurants by the call and still expects 18–20 openings in 2026, followed by 25–30 in 2027. The company also announced plans for 15 restaurants in the New York area over five years, with the first targeted for mid-2027.
• Earnings and expense pressures temper the growth story: Q3 adjusted EBITDA declined to $17.1 million from $17.4 million, and diluted adjusted EPS fell to $0.24 from $0.27. Restaurant contribution margin was 18.4%, while higher G&A and operating costs remain pressures; full-year margin guidance is 18.25%–18.5%.

El Pollo Loco Stock Down 9.6%

Shares of NASDAQ:LOCO opened at $14.88 on Friday. The company has a market cap of $452.80 million, a PE ratio of 14.15 and a beta of 0.85. The firm has a 50 day simple moving average of $15.01 and a 200 day simple moving average of $14.19. El Pollo Loco has a 52 week low of $9.99 and a 52 week high of $17.40. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.38 and a current ratio of 0.41.

Key El Pollo Loco News

Here are the key news stories impacting El Pollo Loco this week:

• Positive Sentiment: System-wide same-store sales grew 5% in Q3, while digital sales accounted for 31% of system sales—signs of continued customer demand and digital-channel traction. El Pollo Loco: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management plans to open 25–30 restaurants in 2027 and projects approximately 4.5% comparable-sales growth for 2026, indicating continued expansion and sales momentum. El Pollo Loco expansion and sales outlook
• Neutral Sentiment: Q3 adjusted earnings were $0.24 per share, matching analysts’ consensus. El Pollo Loco Q3 earnings match estimates
• Negative Sentiment: Revenue was $126.31 million, slightly below the $127.03 million analyst estimate. EPS also fell from $0.27 in the year-ago quarter to $0.24, which may weigh on sentiment despite meeting expectations. El Pollo Loco Q3 earnings report

Analyst Ratings Changes

Several equities analysts have recently issued reports on LOCO shares. DA Davidson upped their target price on El Pollo Loco from $15.00 to $17.00 and gave the company a “neutral” rating in a report on Monday, August 10th. Benchmark upped their price objective on shares of El Pollo Loco from $18.00 to $21.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Weiss Ratings upgraded shares of El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 2nd. Wall Street Zen downgraded El Pollo Loco from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Finally, Roth Capital initiated coverage on El Pollo Loco in a research report on Friday, October 9th. They set a “buy” rating and a $22.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, El Pollo Loco has a consensus rating of “Moderate Buy” and an average target price of $17.30.

Insider Buying and Selling

In related news, major shareholder Sardar Biglari sold 25,556 shares of the stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $16.50, for a total value of $421,674.00. Following the sale, the insider directly owned 3,513,405 shares in the company, valued at $57,971,182.50. This trade represents a 0.72% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders sold 44,709 shares of company stock valued at $737,698. 3.00% of the stock is currently owned by company insiders.

El Pollo Loco Company Profile

El Pollo Loco Holdings, Inc (NASDAQ: LOCO) operates and franchises quick-service restaurants specializing in Mexican-inspired food and citrus-marinated, fire-grilled chicken. Its menu includes chicken meals, burritos, tacos, quesadillas, salads, bowls and family meals, along with a variety of sides, beverages and desserts.

The company was founded in 1975 in Guasave, Sinaloa, Mexico, and expanded into the United States in 1980 with its first restaurant in Los Angeles. El Pollo Loco primarily serves customers through restaurants in the western and southwestern United States, particularly in California, Arizona, Nevada, Colorado and Texas.