Group 1 - The restaurant sector has experienced significant rallies in the stock market this year, comparable to the tech sector [1] - CAVA, a Mediterranean fast-casual chain, has seen its stock price nearly triple since its IPO earlier this year [1]

El Pollo Loco (LOCO) is in the right segment of the restaurant industry: healthy eating. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits this year and next.El Pollo Loco is a leading fire-grilled chicken restaurant known for its healthy food. It’s menu features meals with Mexican flavors made daily.It operates 495 company-owned and franchised restaurants across 7 U.S. states including Arizona, California, Colorado, Nevada, Texas, Utah, and Louisiana. El Pollo Loco also has ...

Core Insights - El Pollo Loco is reintroducing its popular Double Pollo Fit Bowls across all locations for a limited time, featuring high protein content and quality ingredients [1][4] - The Double Pollo Fit Bowls are designed to cater to health-conscious consumers looking for flavorful meal options [4] Product Details - The Double Pollo Fit Bowls come in two flavors: Classic and Street Corn, both featuring a Super Greens blend and a double portion of fire-grilled chicken [2][3] - The Classic Double Pollo Fit Bowl includes ingredients like hand-sliced avocados, queso fresco, and creamy cilantro dressing [2] - The Street Corn Double Pollo Fit Bowl features roasted corn, red peppers, and chili lime seasoning [3] Pricing and Promotions - The Double Pollo Fit Bowls are available until February 19, 2025, with prices starting at $10.99 [4] - On December 12, Loco Rewards members can purchase the Classic Double Pollo Fit Bowl for a promotional price of $7 [4] Company Overview - El Pollo Loco is recognized as the leading fire-grilled chicken restaurant in the U.S., known for its healthy and flavorful offerings [5] - The company operates over 495 locations across seven U.S. states and has ten licensed locations in the Philippines [5] - El Pollo Loco has been awarded as the 1 "Best Restaurant for Quick, Healthy Food" in USA TODAY's 10 Best Readers' Choice Awards [5]

Core Viewpoint - El Pollo Loco Holdings, Inc. has experienced stock underperformance, losing 11.2% over the past three months, compared to the S&P 500's growth of 4.5% and the industry’s 5.2% growth [1][2] Price Performance - As of Thursday, the stock closed at $12.09, below its 52-week high of $14.25 and above its 52-week low of $8.17 [2] - The company has underperformed compared to competitors, with Chipotle Mexican Grill, Inc. rising by 11.5%, Restaurant Brands International Inc. dipping by 0.8%, and Brinker International, Inc. surging by 73.9% in the same period [2] Factors Affecting Performance - The decline in stock price is attributed to poor customer traffic, economic challenges in California and Las Vegas, and increased price sensitivity among consumers [5] - Intense competition from QSR, which is offering aggressive value deals, has pressured El Pollo Loco to introduce lower price points, such as $5 promotions, potentially impacting profit margins [5] Positive Factors for Growth - The company reported a 2.7% increase in system-wide comparable restaurant sales in the fiscal third quarter, driven by new menu offerings and targeted promotions [6] - Strategic cost-saving measures are being implemented to enhance food quality and customer experience, including hiring a new chief development officer to streamline operations [7] - A new restaurant prototype design is expected to reduce unit build costs to $1.8 million, supporting franchise growth in 2025 [7] Future Outlook - El Pollo Loco aims to achieve 18% restaurant contribution margins by 2025, with a focus on sustainable growth and operational efficiency [8] - The introduction of new menu items and promotions is expected to attract customers and improve sales mix [9] - Plans to open at least 10 new locations by 2025, utilizing adaptable restaurant formats to drive unit growth [10] Earnings Estimates - The Zacks Consensus Estimate for earnings per share has been revised upward by 3.8% to 83 cents for the current fiscal year and by 4.5% to 93 cents for the next fiscal year [11] Valuation - El Pollo Loco is currently trading at a forward 12-month P/E ratio of 13.11, significantly lower than the industry average of 25.83 and the S&P 500's ratio of 22.28, indicating a valuation discount [12] Conclusion - Despite short-term challenges, El Pollo Loco's initiatives for long-term growth, including menu innovation and operational efficiency, present an attractive entry point for value-focused investors [15]

Group 1: Price Trend and Technical Analysis - El Pollo Loco Holdings (LOCO) has experienced a bearish trend, losing 7% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1] - The hammer pattern indicates a possible bottom formation with reduced selling pressure, signaling that bulls might be gaining control [2] Group 2: Fundamental Indicators - There has been a 3.3% increase in the consensus EPS estimate for LOCO over the last 30 days, indicating that analysts expect better earnings than previously predicted [3] - LOCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank serves as a strong timing indicator for potential trend reversals, suggesting improving prospects for the company [3]

Core Insights - The article discusses the phenomenon termed the 'Fast-Food Exodus', indicating a significant shift in consumer behavior within the fast-food industry due to high inflation rates exceeding 2% [1] Industry Analysis - The analysis highlights that both value scores and traffic data are pointing towards a decline in fast-food consumption, suggesting that consumers are reevaluating their spending habits in light of economic pressures [1] - The coverage includes various segments of the restaurant industry, such as Quick Service Restaurants (QSR), fast casual, casual dining, fine dining, and family dining, indicating a comprehensive approach to understanding market dynamics [1] Company Insights - The company, Goulart's Restaurant Stocks, employs advanced analytical models and specialized valuation techniques to provide detailed insights and actionable strategies for investors in the restaurant sector [1] - The founder's background in accounting and business consulting across LATAM adds credibility to the analysis, suggesting a well-rounded perspective on financial performance and market trends [1]

Core Viewpoint - El Pollo Loco Holdings (LOCO) has experienced significant selling pressure, resulting in a 10.1% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Stock Performance and Technical Analysis - LOCO's stock is currently in oversold territory with a Relative Strength Index (RSI) reading of 25.77, suggesting a possible reversal in trend [5]. - The stock's price has been under pressure, but the heavy selling appears to be exhausting, indicating a potential return to equilibrium in supply and demand [5]. - The consensus EPS estimate for LOCO has increased by 3.3% over the last 30 days, which typically correlates with price appreciation in the near term [5]. Group 2: Analyst Ratings and Market Position - LOCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [6].

Core Viewpoint - El Pollo Loco Holdings (LOCO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for El Pollo Loco is projected at $0.81 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 14.1% [9]. - Over the past three months, the Zacks Consensus Estimate for El Pollo Loco has risen by 0.8%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based on changes in earnings estimates, which are crucial for predicting near-term stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - El Pollo Loco's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 25, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36556 EL POLLO LOCO HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 20-356 ...

El Pollo Loco Holdings (LOCO) reported $120.4 million in revenue for the quarter ended September 2024, representing no change year over year. EPS of $0.21 for the same period compares to $0.19 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $123.11 million, representing a surprise of -2.20%. The company delivered an EPS surprise of +23.53%, with the consensus EPS estimate being $0.17.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...