El Pollo Loco (LOCO) versus Its Rivals Financial Analysis

El Pollo Loco (NASDAQ:LOCO – Get Free Report) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare El Pollo Loco to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares El Pollo Loco and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
El Pollo Loco $490.05 million $26.49 million 12.79
El Pollo Loco Competitors $3.71 billion $250.20 million -155.69

El Pollo Loco’s peers have higher revenue and earnings than El Pollo Loco. El Pollo Loco is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and target prices for El Pollo Loco and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
El Pollo Loco 0 4 4 1 2.67
El Pollo Loco Competitors 3801 17266 25581 902 2.50

El Pollo Loco presently has a consensus price target of $17.30, suggesting a potential upside of 15.60%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.45%. Given El Pollo Loco’s peers higher probable upside, analysts clearly believe El Pollo Loco has less favorable growth aspects than its peers.

Volatility & Risk

El Pollo Loco has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, El Pollo Loco’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

81.3% of El Pollo Loco shares are held by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 3.0% of El Pollo Loco shares are held by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares El Pollo Loco and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
El Pollo Loco 6.96% 10.87% 5.32%
El Pollo Loco Competitors 2.45% -40.43% 2.13%

Summary

El Pollo Loco beats its peers on 7 of the 13 factors compared.

About El Pollo Loco

(Get Free Report)

El Pollo Loco Holdings, Inc., through its subsidiary, El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. It operates and franchises restaurants located in California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. It also licenses its brand to restaurants in the Philippines. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1975 and is headquartered in Costa Mesa, California.

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