Core Points - El Pollo Loco is launching its annual "12 Days of Pollo" promotion from December 1 to December 12, offering daily deals exclusively for Loco Rewards members [1][2] - The promotion includes a charitable component where $2 will be donated to No Kid Hungry® for every $10 Classic Tostada Combo redeemed on Giving Tuesday, with a maximum donation of $15,000 [3] - The campaign features a new holiday character, "Chicken in the Kitchen," who will reveal daily deals through social media [4] Promotion Details - Daily deals for the "12 Days of Pollo" include: - Dec. 1: BOGO Fire-Grilled Chicken Burrito - Dec. 2: $10 Classic Tostada Combo - Dec. 3: 20% Off a Purchase - Dec. 4: $8 3-piece Leg and Thigh meal - Dec. 5: $5 off $20 or $10 off $30 - Dec. 6: $25 12-piece Leg and Thigh Family Meal - Dec. 7: Free Caramel Flan or 2 Churros with $15 Purchase - Dec. 8: $9 Double Chicken Burrito Bowl - Dec. 9: +2500 Bonus Points on all Orders - Dec. 10: $20 8-piece Leg and Thigh Family Meal - Dec. 11: $10 Double Chicken Tostada - Dec. 12: BOGO Quesadilla [6] Company Overview - El Pollo Loco is recognized as the leading fire-grilled chicken restaurant in the U.S., known for its flavorful and healthier menu options [5] - The company operates over 500 locations across several states and has expanded internationally with licensed locations in the Philippines [5] - El Pollo Loco Foundation, established in 2004, aims to support youth development and success [7]

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Maria Hollandsworth is departing El Pollo Loco, effective Dec. 26. She has been with the quick-service chain since 2022, serving as president and chief operating officer. She also served as interim chief executive officer for about four months after the departure of Larry Roberts in November 2023. According to a filing with the Securities and Exchange Commission, Hollandsworth will receive accrued benefits under the comp ...

Shares of El Pollo Loco Holdings (LOCO) have gained 7.1% over the past four weeks to close the last trading session at $10.24, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $13.67 indicates a potential upside of 33.5%.The mean estimate comprises three short-term price targets with a standard deviation of $3.79. While the lowest estimate of $11.00 indicates a 7.4% increase from ...

Core Viewpoint - El Pollo Loco Holdings (LOCO) has shown a significant price increase of 11.1% over the past four weeks, with a mean price target of $14 indicating a potential upside of 35.9% from the current price of $10.3 [1] Price Targets and Analyst Estimates - The mean estimate for LOCO comprises three short-term price targets with a standard deviation of $3.61, suggesting variability in analyst predictions. The lowest estimate is $11.00 (6.8% increase), while the highest is $18.00 (74.8% increase) [2] - A low standard deviation among price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about LOCO's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 6.9%, with two estimates moving higher and no negative revisions [12] - LOCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] Caution on Price Targets - While consensus price targets are often sought after, they may not reliably indicate actual stock price movements, and investors should approach them with skepticism [3][10]

Core Insights - El Pollo Loco experienced increased traffic and expanded margins in Q3, attributed to menu innovations, operational improvements, and targeted value offerings [1] - The company is outperforming competitors in sales and transactions, indicating effective strategies in a challenging consumer environment [2][3] Menu Innovations - New product launches include the premium Creamy Chipotle and Salsa Verde quesadillas, which have been added to the permanent menu [3] - The company is expanding portable offerings with new Double Chicken Street Corn and Queso Crunch burrito bowls, and plans for 2026 include Double Pollo Salads and additional portable items [3] - El Pollo Loco is testing Loco Tenders with signature dipping sauces and a new fire-fried chicken sandwich, which offers a unique twist on traditional fried sandwiches [4] Brand Campaigns - The new brand campaign "Let's Get Loco," launched in May, has generated momentum, featuring initiatives like the AI Chicken Challenge on social media [5] - The campaign includes a functional call to action, encouraging customer engagement through creative submissions [5] Beverage Strategy - El Pollo Loco plans to enter the competitive beverage market in 2026, recognizing it as a significant opportunity to increase check sizes and enhance brand relevance [4]

Core Insights - The restaurant sector is experiencing significant volatility during the Q3 earnings season, with investors feeling particularly anxious due to multiple challenges such as cost inflation and weak consumer spending [1]. Industry Summary - The restaurant industry is facing headwinds that include rising costs and a decline in consumer spending, impacting major players like Chipotle [1].

Core Insights - The fast-casual restaurant sector has potential for growth, needing more investors and a compelling narrative to attract Wall Street interest [1] Company Insights - The research firm Goulart's Restaurant Stocks specializes in the U.S. restaurant industry, covering various segments from quick-service to fine dining [2] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly focusing on micro and small-cap companies [2] Analyst Background - The founder of Goulart's Restaurant Stocks has a strong academic background with an MBA in Controllership and Accounting Forensics, and a Bachelor's in Business Administration [2] - The founder has practical experience in finance and business management, including a brief stint as a franchise partner for a regional ice cream shop [2]

Revenue and Sales Performance - Total revenue for the thirteen weeks ended September 24, 2025, was $121.5 million, with company-operated restaurant revenue at $100.7 million and franchise revenue at $20.8 million[168]. - System-wide comparable restaurant sales decreased by 0.8% for the thirteen weeks ended September 24, 2025, while company-operated restaurants saw a 1.1% decrease in comparable sales for the same period[169]. - Total revenue for the quarter was $121.520 million, an increase of 0.9% from $120.395 million in the comparable period of the prior year[227]. - Franchise revenue for the quarter ended September 24, 2025, increased by $1.5 million, or 13.5%, primarily due to franchisee IT pass-through revenue related to the new POS system[200]. - Franchise revenue year-to-date increased by $5.1 million, or 14.8%, primarily due to franchisee IT pass-through revenue related to the new POS system[201]. - Total revenue for the thirty-nine weeks ended September 24, 2025, was $366.5 million, compared to $358.7 million for the same period in 2024, representing a year-over-year increase of 2.2%[234]. Income and Expenses - Net income for the quarter ended September 24, 2025, was $7.36 million, representing an 18.9% increase from $6.19 million in the same quarter last year[194]. - Labor and related expenses decreased by $2.1 million, or 6.4%, for the quarter ended September 24, 2025, compared to the prior year[194]. - General and administrative expenses increased by $925,000, or 8.1%, for the quarter ended September 24, 2025, compared to the same period last year[194]. - Total expenses for the thirteen weeks ended September 24, 2025, were $110.06 million, a slight decrease of 0.2% from $110.26 million in the prior year[194]. - Restaurant contribution margin for the thirteen weeks ended September 24, 2025, was 18.3%, up from 16.7% for the same period in 2024[234]. Operational Developments - As of September 24, 2025, the company operated 498 locations, with three new openings in the thirty-nine weeks ended September 24, 2025, and the announcement of the 500th restaurant opening on October 14, 2025[165]. - The company completed 34 restaurant remodels during the thirty-nine weeks ended September 24, 2025, with an average investment of approximately $0.4 million per restaurant[171][173]. - Franchisees opened three new restaurants in the thirty-nine weeks ended September 24, 2025, while closing three in California[165]. - The company opened new restaurants, which typically experience a start-up period of approximately fourteen weeks before revenue and expenses normalize[235]. Customer Engagement and Loyalty - The Loco Rewards loyalty program had over 4.6 million members as of September 24, 2025, with $1.1 million in revenue allocated to unredeemed loyalty points[175]. - Comparable restaurant sales for company-operated restaurants increased by 0.2% year-to-date, driven by a 1.6% increase in average check size[169]. Financial Position and Liquidity - The company’s liquidity sources include cash from operations and the 2022 Revolver, which are deemed sufficient to finance operations for at least the next 12 months[246]. - The net increase in cash for the thirty-nine weeks ended September 24, 2025, was $8.4 million, compared to a net increase of $0.6 million for the same period in 2024[247]. - As of September 24, 2025, the company had $61.0 million in outstanding borrowings under the 2022 Revolver and $10.3 million in letters of credit, resulting in $78.7 million in borrowing availability[255]. Cost Management and Inflation - Labor and regulatory compliance costs increased due to California legislation, impacting fiscal 2024 and 2025, although the company has managed to offset some of these costs through menu price increases[159]. - The company expects ongoing inflationary pressures and potential tariff impacts to affect food and supply costs, which may not be fully offset in the future[162][163]. - Inflation has impacted costs related to food, labor, and general expenses, although the company has managed to offset some increases through menu price adjustments[261]. - The company is exposed to commodity price fluctuations, particularly in food product prices, which can materially affect food and beverage costs[262]. - The company has not used financial instruments to hedge commodity risk, which may adversely affect results of operations if cost increases are not passed on to customers[262].

Core Insights - El Pollo Loco Holdings (LOCO) reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of +17.39% [1] - The company posted revenues of $121.52 million for the quarter ended September 2025, which was 1.61% below the Zacks Consensus Estimate, but an increase from $120.39 million year-over-year [2] - El Pollo Loco shares have declined approximately 17.6% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $124.98 million, and for the current fiscal year, it is $0.90 on revenues of $493.54 million [7] - The estimate revisions trend for El Pollo Loco was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which El Pollo Loco belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - For Q3 2025, total revenue was $121.5 million, a slight increase from $120.4 million in Q3 2024 [29] - Company-operated restaurant revenue decreased by 0.5% to $100.7 million from $101.2 million in the same period last year [30] - GAAP net income rose to $7.4 million, or $0.25 per diluted share, compared to $6.2 million, or $0.21 per diluted share in the prior year [36] Business Line Data and Key Metrics Changes - Franchise revenue increased by 13.5% to $12.9 million, driven by IT pass-through revenue and new franchise openings [30] - Company-operated comparable restaurant sales decreased by 1.1%, with a 1.3% decrease in average check size, partially offset by a 0.1% increase in transactions [30] - Restaurant contribution margin improved to 18.3% compared to 16.7% in the year-ago period [34] Market Data and Key Metrics Changes - System-wide traffic growth was positive at 1.6%, with franchise traffic up 2.5% in Q3 [31] - Digital business, including kiosks, grew to 27% of system sales compared to 20% in the same period last year [19] - Third-party delivery sales represented 15.1% of the business, up from 13.8% year-over-year [20] Company Strategy and Development Direction - The company is focused on five strategic pillars: brand marketing and menu innovation, operational excellence, digital-first approach, winning unit economics, and new unit growth [6][7] - A robust pipeline of menu innovations is planned for 2026, including new salads and portable options [12][13] - The company aims to open at least 10 new restaurants in 2025, with a strong pipeline for 2026 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and noted improvements in customer engagement metrics, with complaints at a three-year low [17] - The company anticipates continued sales momentum into Q4 2025, despite a challenging macro consumer environment [31] - Management acknowledged ongoing challenges but emphasized operational improvements and customer experience enhancements [43] Other Important Information - The company completed 34 system-wide remodels in 2025, with plans for at least 55 remodels for the full year [26][37] - The "Let's Get Loco" brand campaign has resonated well with customers, driving engagement and brand awareness [15][16] Q&A Session Summary Question: Performance relative to peers in California - Management indicated that the company is outperforming peers in California in both sales and transactions, attributing this to value positioning and operational enhancements [40][41] Question: Tactics to offset market pressures - Management noted that adjustments made throughout the year have helped maintain performance, with no significant deterioration in consumer behavior observed [42][43] Question: Future cost efficiencies - Management believes there are still opportunities for cost savings and efficiencies, particularly in labor and supply chain [44][45] Question: Menu item testing and introduction - Management confirmed that new menu items like Loco Tenders and a chicken sandwich are in testing and could be introduced in 2026 [47][48] Question: Chicken contracting for next year - Management stated that they are in good shape regarding chicken contracts for the upcoming year, with some pressure on dark meat prices [49] Question: Supply chain innovations - Management is testing various ideas to improve consistency and quality, including pre-marination processes [51] Question: Margin outlook for Q4 - Management expects to grow margins year-over-year in Q4, despite some pressure from sales volume differences [54] Question: Marketing efforts and consumer response - Management noted that the "Let's Get Loco" campaign is driving awareness and attracting new customers, with a focus on balancing value and check protection [56][58]