El Pollo Loco (NASDAQ:LOCO) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

El Pollo Loco (NASDAQ:LOCO) announced its 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 business had revenue of $129.57 million during the quarter, compared to analysts’ expectations of $130.29 million. El Pollo Loco had a return on equity of 11.04% and a net margin of 5.87%.

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 Down 3.6%

Shares of NASDAQ LOCO traded down $0.62 during mid-day trading on Thursday, reaching $16.37. The company had a trading volume of 383,819 shares, compared to its average volume of 206,006. The stock has a fifty day moving average of $15.93 and a two-hundred day moving average of $13.73. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.32 and a current ratio of 0.34. El Pollo Loco has a 12-month low of $8.98 and a 12-month high of $17.40. The company has a market capitalization of $498.47 million, a price-to-earnings ratio of 16.70 and a beta of 0.78.

Insider Transactions at El Pollo Loco

In other El Pollo Loco news, major shareholder Sardar Biglari sold 80,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $16.90, for a total value of $1,352,000.00. Following the transaction, the insider directly owned 66,422 shares of the company’s stock, valued at $1,122,531.80. This represents a 54.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold a total of 557,703 shares of company stock worth $9,408,738 over the last ninety days. 3.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Tower Research Capital LLC TRC boosted its holdings in El Pollo Loco by 85.0% in the second quarter. Tower Research Capital LLC TRC now owns 3,862 shares of the restaurant operator’s stock worth $43,000 after purchasing an additional 1,774 shares in the last quarter. Kestra Advisory Services LLC bought a new position in El Pollo Loco during the fourth quarter valued at about $50,000. BNP Paribas Financial Markets lifted 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 worth $51,000 after buying an additional 2,493 shares during the last quarter. Quinn Opportunity Partners LLC acquired a new stake in shares of El Pollo Loco in the third quarter worth about $97,000. Finally, The Manufacturers Life Insurance Company bought a new stake in El Pollo Loco during the second quarter worth approximately $110,000. Institutional investors and hedge funds own 81.28% of the company’s stock.

More El Pollo Loco News

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

• Positive Sentiment: Adjusted earnings exceeded expectations. El Pollo Loco reported second-quarter EPS of $0.30, ahead of analyst estimates ranging from $0.28 to $0.29 and up from $0.28 a year earlier. The result indicates some earnings resilience despite ongoing operating pressures. El Pollo Loco Holdings Tops Q2 Earnings Estimates
• Neutral Sentiment: Revenue slightly missed forecasts. Quarterly revenue was $129.57 million versus the $130.29 million consensus estimate. El Pollo Loco posted a 5.87% net margin and 11.04% return on equity, while full-year analyst expectations remain approximately $0.95 in EPS. El Pollo Loco Announces Second Quarter 2026 Financial Results
• Neutral Sentiment: Valuation and analyst views are mixed. El Pollo Loco has a “Moderate Buy” consensus rating, but the reported average price target of $14.88 is below the stock’s recent trading level. Prior targets range from $15 to $18, suggesting limited upside at the current valuation for some analysts. El Pollo Loco analyst data
• Negative Sentiment: Major shareholder Sardar Biglari continued to reduce his position. Biglari sold 80,000 shares for approximately $1.35 million on August 5 and another 20,000 shares for about $335,000 on August 3. The transactions add to a series of recent sales and may pressure investor sentiment by signaling reduced insider conviction or creating additional share supply. El Pollo Loco major shareholder sales

El Pollo Loco declared that its Board of Directors has authorized a share repurchase plan on Thursday, May 28th that allows the company to repurchase $40.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on LOCO shares. Benchmark upped their price target on shares of El Pollo Loco from $14.00 to $18.00 and gave the company a “buy” rating in a report on Friday, May 8th. Weiss Ratings upgraded shares of El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, July 15th. DA Davidson increased their target price 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, Freedom Capital raised shares of El Pollo Loco to a “strong-buy” rating in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.88.

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.