El Pollo Loco (NASDAQ:LOCO) Releases Quarterly Earnings Results, Hits Estimates

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

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

Shares of NASDAQ:LOCO opened at $15.63 on Friday. The company has a quick ratio of 0.38, a current ratio of 0.41 and a debt-to-equity ratio of 0.10. The stock has a market cap of $475.53 million, a PE ratio of 12.63 and a beta of 0.85. The company’s fifty day moving average is $15.01 and its 200 day moving average is $14.17. El Pollo Loco has a 52 week low of $9.99 and a 52 week high of $17.40.

Insider Transactions at El Pollo Loco

In other news, major shareholder Sardar Biglari sold 25,556 shares of the firm’s stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $16.50, for a total transaction of $421,674.00. Following the transaction, the insider directly owned 3,513,405 shares of the company’s stock, valued at approximately $57,971,182.50. This trade represents a 0.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 3.00% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Wall Street Zen lowered shares of El Pollo Loco from a “buy” rating to a “hold” rating in a research report on Saturday, August 15th. Benchmark lifted their price target on El Pollo Loco from $18.00 to $21.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. DA Davidson lifted their price target on El Pollo Loco from $15.00 to $17.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. Weiss Ratings upgraded El Pollo Loco from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, October 2nd. Finally, Roth Capital started coverage on El Pollo Loco in a research note on Friday, October 9th. They issued a “buy” rating and a $22.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $17.30.

Key Stories Impacting El Pollo Loco

Here are the key news stories impacting El Pollo Loco this week:

• Positive Sentiment: System-wide same-store sales rose 5% in the quarter, and digital sales made up 31% of system sales—signs of continued customer demand and digital adoption. El Pollo Loco: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management plans to open 25 to 30 restaurants in 2027 and projected approximately 4.5% comparable-sales growth for 2026, supporting the company’s growth outlook. El Pollo Loco expansion and comparable-sales outlook
• Neutral Sentiment: Third-quarter EPS of $0.24 matched analyst expectations, but revenue of $126.31 million was just below the $127.03 million consensus. Third-quarter 2026 financial results
• Negative Sentiment: EPS was down from $0.27 in the year-ago quarter to $0.24, which may temper the positive read-through from same-store sales growth. El Pollo Loco Q3 earnings match estimates

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.