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

El Pollo Loco (NASDAQ:LOCO) released its quarterly 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 company had revenue of $126.31 million during the quarter, compared to the consensus estimate 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 Trading Down 0.1%

Shares of LOCO traded down $0.01 on Thursday, hitting $16.46. 514,652 shares of the stock traded hands, compared to its average volume of 263,726. El Pollo Loco has a 1 year low of $9.99 and a 1 year high of $17.40. The stock’s 50 day moving average is $15.01 and its two-hundred day moving average is $14.17. The firm has a market capitalization of $500.88 million, a P/E ratio of 14.97 and a beta of 0.85. The company has a quick ratio of 0.38, a current ratio of 0.41 and a debt-to-equity ratio of 0.10.

Analysts Set New Price Targets

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

Insider Buying and Selling

In other El Pollo Loco news, major shareholder Sardar Biglari sold 25,556 shares of El Pollo Loco 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 completion of the sale, the insider directly owned 3,513,405 shares of the company’s stock, valued at approximately $57,971,182.50. The trade was a 0.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.00% of the company’s stock.

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.