El Pollo Loco Holdings, Inc. (LOCO)

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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.

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.

The mean of analysts' price targets for El Pollo Loco (LOCO) points to a 28.6% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate 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.

El Pollo Loco Holdings, Inc. (NASDAQ:LOCO ) Q2 2025 Earnings Conference Call July 31, 2025 4:30 PM ET Company Participants Elizabeth Goodwin Williams - CEO & Director Ira M. Fils - Chief Financial Officer Conference Call Participants Jake Rowland Bartlett - Truist Securities, Inc., Research Division Marshall Pittman - Jefferies Matthew James Curtis - William Blair & Company L.L.C.

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

El Pollo Loco Holdings (LOCO) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.26 per share a year ago.

COSTA MESA, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13-week period ended June 25, 2025.

El Pollo Loco remains cheap and undervalued, but California exposure and weak Q2 for Mexican QSRs create near-term headwinds. Casual dining is outperforming fast-casual and QSR segments, eroding fast-casual's value proposition and pricing power. California's negative same-store sales and political climate are disproportionately impacting Mexican restaurant chains like El Pollo Loco.