The average of price targets set by Wall Street analysts indicates a potential upside of 33.8% in El Pollo Loco (LOCO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
El Pollo Loco remains a Buy, supported by asset-light expansion, strong unit economics, and a shift beyond California. LOCO's franchise-led growth leverages low-cost conversions, driving higher ROI and expanding EBITDA margins toward a 20% long-term target. Management raised FY 2026 guidance: same-store sales to 3.5–4.5%, adjusted EBITDA to $68–70M, and reduced CapEx, supporting FCF and capital allocation flexibility.
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 26.6% 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. (LOCO) Q2 2026 Earnings Call Transcript
El Pollo Loco NASDAQ: LOCO reported second-quarter results marked by higher same-store sales, improved restaurant-level margins and continued expansion outside California, while raising its full-year sales and adjusted EBITDA outlook.
El Pollo Loco Holdings (LOCO) came out with quarterly earnings of $0.3 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.28 per share a year ago.
El Pollo Loco (LOCO) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
El Pollo Loco has surged 60%+ YTD, dramatically outperforming the S&P 500, yet fundamentals and valuation still support further upside. LOCO's defensible niche in flame-grilled Mexican chicken and strong same-restaurant sales growth set it apart amid sector-wide comp declines. Operating margins are rising toward 20%, with higher average checks offsetting labor and food cost pressures.
El Pollo Loco Holdings, Inc. is upgraded from Hold to a soft Buy as fundamentals and comparable sales have improved markedly. LOCO's system-wide comparable sales surged 5.8% in Q1 2026, outpacing inflationary headwinds and demonstrating successful menu innovation and digital growth. Management targets 19–20 new locations and 2–4% system-wide comparable sales growth in 2026, supported by robust digital and loyalty channel expansion.
El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) has authorized a $40 million share repurchase program, the Costa Mesa, California-based restaurant chain said Thursday evening. The board of directors approved the repurchase of up to $40 million of its common stock, representing approximately 9% of the company's current market capitalization.