El Pollo Loco (NASDAQ:LOCO) Announces Quarterly Earnings Results

El Pollo Loco (NASDAQ:LOCO) issued its quarterly earnings results on Thursday. The restaurant operator reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.02, FiscalAI reports. El Pollo Loco had a net margin of 6.96% and a return on equity of 11.10%. The company had revenue of $129.57 million during the quarter, compared to analysts’ expectations of $130.29 million.

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 Trading Down 7.4%

LOCO stock opened at $15.16 on Friday. El Pollo Loco has a one year low of $8.98 and a one year high of $17.40. The stock has a market cap of $461.70 million, a price-to-earnings ratio of 12.96 and a beta of 0.78. The company has a fifty day moving average price of $15.94 and a two-hundred day moving average price of $13.74. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.34 and a quick ratio of 0.32.

El Pollo Loco declared that its board has approved a share buyback program on Thursday, May 28th that authorizes the company to buyback $40.00 million in shares. This buyback authorization authorizes the restaurant operator to purchase up to 9.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

LOCO has been the topic of a number of research reports. Freedom Capital raised shares of El Pollo Loco to a “strong-buy” rating in a research report on Wednesday, July 1st. Benchmark raised their target price on shares of El Pollo Loco from $18.00 to $21.00 and gave the company a “buy” rating in a research report on Friday. DA Davidson lifted their price target on shares of El Pollo Loco from $13.00 to $15.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. Finally, Weiss Ratings raised shares of El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $15.62.

Insider Buying and Selling at El Pollo Loco

In other news, major shareholder Sardar Biglari sold 132,421 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $17.27, for a total transaction of $2,286,910.67. Following the completion of the sale, the insider owned 3,644,979 shares in the company, valued at approximately $62,948,787.33. This trade represents a 3.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders have sold 557,703 shares of company stock valued at $9,408,738 over the last 90 days. 3.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Tower Research Capital LLC TRC lifted its position in El Pollo Loco by 85.0% during the second quarter. Tower Research Capital LLC TRC now owns 3,862 shares of the restaurant operator’s stock worth $43,000 after acquiring an additional 1,774 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of El Pollo Loco in the fourth quarter valued at approximately $50,000. BNP Paribas Financial Markets grew its position in shares of El Pollo Loco by 89.5% in the third quarter. BNP Paribas Financial Markets now owns 5,277 shares of the restaurant operator’s stock valued at $51,000 after purchasing an additional 2,493 shares during the last quarter. Quinn Opportunity Partners LLC bought a new position in shares of El Pollo Loco during the third quarter worth approximately $97,000. Finally, The Manufacturers Life Insurance Company bought a new position in shares of El Pollo Loco during the second quarter worth approximately $110,000. 81.28% of the stock is owned by institutional investors.

About El Pollo Loco

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.