El Pollo Loco (NASDAQ:LOCO) Announces Earnings Results, Beats Estimates By $0.04 EPS

El Pollo Loco (NASDAQ:LOCO) issued its quarterly earnings results on Thursday. The restaurant operator reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.04, FiscalAI reports. El Pollo Loco had a net margin of 5.39% and a return on equity of 10.15%. The firm had revenue of $123.52 million for the quarter, compared to analyst estimates of $122.18 million.

Here are the key takeaways from El Pollo Loco’s conference call:

• El Pollo Loco reported a stronger Q4 with positive same-store sales, improved restaurant-level margins (17.5% in Q4; guidance 18.0%-18.5% for 2026) and higher adjusted EBITDA ($16.9M vs. $14.3M), and issued 2026 guidance targeting 2%-3% system comps and $66M-$68M adjusted EBITDA.
• The company highlighted successful menu innovation—keeping the Street Corn and Queso Crunch Double Chicken Bowls as permanent items and planning a spring launch of Loco Tenders—saying a robust pipeline and operational controls will limit restaurant disruption.
• Digital and loyalty momentum is accelerating: Loco Rewards revenue and participation grew >20% YoY, delivery grew 12% YoY, and the chain completed a system-wide cloud POS upgrade and added a new CTO to scale technology and analytics.
• Development economics are improving—2025 saw 9 openings (including the 500th restaurant), many on lower-cost second-generation sites averaging >$2M in annualized sales, and 2026 targets ~18-20 new restaurants (3-4 company-owned), signaling scalable unit growth.
• Near-term cost pressure and investments: G&A rose to 10.7% of sales with 2026 G&A guidance of $52M-$54M, occupancy and operating costs increased, planned CapEx of $37M-$40M, and cash was modest ($6.2M at year-end) with ~$48M debt outstanding—raising execution and liquidity considerations.

El Pollo Loco Trading Up 16.5%

Shares of LOCO traded up $1.80 during mid-day trading on Friday, reaching $12.68. The stock had a trading volume of 864,412 shares, compared to its average volume of 213,982. El Pollo Loco has a 52-week low of $8.29 and a 52-week high of $13.07. The firm has a market cap of $379.74 million, a price-to-earnings ratio of 14.35 and a beta of 1.00. The business’s fifty day moving average is $10.81 and its 200 day moving average is $10.49. The company has a debt-to-equity ratio of 0.22, a current ratio of 0.41 and a quick ratio of 0.38.

Analyst Ratings Changes

A number of equities analysts have commented on the company. Zacks Research cut El Pollo Loco from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 30th. DA Davidson set a $11.00 price target on El Pollo Loco in a research report on Friday. Weiss Ratings reissued a “hold (c)” rating on shares of El Pollo Loco in a research note on Wednesday, January 21st. William Blair restated a “market perform” rating on shares of El Pollo Loco in a report on Friday. Finally, Jefferies Financial Group lifted their target price on shares of El Pollo Loco from $12.00 to $13.50 and gave the stock a “buy” rating in a research note on Monday, December 15th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $12.63.

Hedge Funds Weigh In On El Pollo Loco

A number of institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC grew its stake in shares of El Pollo Loco by 4.8% in the 1st quarter. AQR Capital Management LLC now owns 287,143 shares of the restaurant operator’s stock valued at $2,958,000 after buying an additional 13,095 shares during the period. Millennium Management LLC lifted its holdings in El Pollo Loco by 197.4% in the first quarter. Millennium Management LLC now owns 680,391 shares of the restaurant operator’s stock valued at $7,008,000 after acquiring an additional 451,575 shares during the last quarter. Empowered Funds LLC lifted its holdings in El Pollo Loco by 7.4% in the first quarter. Empowered Funds LLC now owns 188,519 shares of the restaurant operator’s stock valued at $1,942,000 after acquiring an additional 12,964 shares during the last quarter. Jane Street Group LLC purchased a new position in El Pollo Loco in the first quarter worth approximately $221,000. Finally, Creative Planning purchased a new position in El Pollo Loco in the second quarter worth approximately $240,000. 81.28% of the stock is owned by hedge funds and other institutional investors.

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.