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

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

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 Price Performance

NASDAQ LOCO traded down $0.01 on Thursday, reaching $16.46. The company’s stock had a trading volume of 514,652 shares, compared to its average volume of 263,726. El Pollo Loco has a twelve month low of $9.99 and a twelve month 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. The firm’s 50 day moving average is $15.01 and its two-hundred day moving average is $14.17. The stock has a market cap of $500.88 million, a PE ratio of 14.97 and a beta of 0.85.

Insider Activity

In other 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 transaction, the insider owned 3,513,405 shares of the company’s stock, valued at $57,971,182.50. The trade was a 0.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 3.00% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research firms recently commented on LOCO. Wall Street Zen lowered shares of El Pollo Loco from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. Weiss Ratings upgraded El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, October 2nd. Roth Capital assumed coverage on El Pollo Loco in a research note on Friday, October 9th. They set a “buy” rating and a $22.00 price target for the company. Benchmark increased their price target on El Pollo Loco from $18.00 to $21.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, DA Davidson lifted their price target 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. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.30.

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.