NasdaqGS:LOCO

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has El Pollo Loco Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LOCO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.9%

LOCO

2.7%

US Hospitality

7.2%

US Market


1 Year Return

-35.0%

LOCO

-44.6%

US Hospitality

-10.4%

US Market

Return vs Industry: LOCO exceeded the US Hospitality industry which returned -44.6% over the past year.

Return vs Market: LOCO underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

LOCOIndustryMarket
7 Day-11.9%2.7%7.2%
30 Day-37.7%-36.3%-12.6%
90 Day-46.9%-47.7%-19.4%
1 Year-35.0%-35.0%-43.1%-44.6%-8.5%-10.4%
3 Year-30.7%-30.7%-31.2%-35.9%15.8%8.3%
5 Year-68.8%-68.8%-25.3%-33.6%35.8%21.0%

Price Volatility Vs. Market

How volatile is El Pollo Loco Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is El Pollo Loco Holdings undervalued compared to its fair value and its price relative to the market?

11.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LOCO ($8.04) is trading above our estimate of fair value ($0.98)

Significantly Below Fair Value: LOCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LOCO is good value based on its PE Ratio (11.9x) compared to the Hospitality industry average (11.9x).

PE vs Market: LOCO is good value based on its PE Ratio (11.9x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: LOCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: LOCO is good value based on its PB Ratio (1.2x) compared to the US Hospitality industry average (1.3x).


Next Steps

Future Growth

How is El Pollo Loco Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOCO's forecast earnings growth (8.5% per year) is above the savings rate (1.7%).

Earnings vs Market: LOCO's earnings (8.5% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: LOCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: LOCO's revenue (1.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LOCO's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LOCO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has El Pollo Loco Holdings performed over the past 5 years?

-44.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOCO has high quality earnings.

Growing Profit Margin: LOCO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LOCO's earnings have declined by -44.5% per year over the past 5 years.

Accelerating Growth: LOCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LOCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (1.6%).


Return on Equity

High ROE: LOCO's Return on Equity (10.1%) is considered low.


Next Steps

Financial Health

How is El Pollo Loco Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LOCO's short term assets ($24.7M) do not cover its short term liabilities ($74.0M).

Long Term Liabilities: LOCO's short term assets ($24.7M) do not cover its long term liabilities ($305.2M).


Debt to Equity History and Analysis

Debt Level: LOCO's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: LOCO's debt to equity ratio has reduced from 79.2% to 39.5% over the past 5 years.

Debt Coverage: LOCO's debt is well covered by operating cash flow (37.3%).

Interest Coverage: LOCO's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

Inventory Level: LOCO has a high level of physical assets or inventory.

Debt Coverage by Assets: LOCO's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is El Pollo Loco Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LOCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LOCO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LOCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOCO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LOCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Bernard Acoca (50yo)

2s

Tenure

US$2,952,815

Compensation

Mr. Bernard Acoca has been President, Chief Executive Officer and Director of El Pollo Loco Holdings, Inc. since March 12, 2018. Mr. Acoca serves as President and Chief Executive Officer of El Pollo Loco,  ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD2.95M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Insufficient data to compare Bernard's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Acoca
President2yrsUS$2.95m0.24% $666.4k
Laurance Roberts
CFO & Treasurer6.67yrsUS$992.42k0.17% $489.1k
Miguel Lozano
Chief Operating Officer0.83yrno data0.062% $175.2k
Douglas Soller
Vice President of Accounting & Financeno datano datano data
Jason Weintraub
Chief Legal Officer0.58yrno datano data
Jennifer Jaffe
Chief People Officer & Senior VP1.58yrsno datano data
Brian Carmichall
Chief Development Officerno datano datano data
Edith Austin
Corporate Secretaryno datano datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: LOCO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bernard Acoca
President2yrsUS$2.95m0.24% $666.4k
John Roth
Independent Director13.17yrsUS$121.25k0.037% $105.4k
Dean Kehler
Director14.25yrsUS$120.00k0.030% $84.6k
William Floyd
Independent Director3.83yrsUS$175.00k0.051% $144.8k
Mark Buller
Independent Director4.67yrsUS$136.25k0.058% $164.3k
Michael Maselli
Chairman9.17yrsUS$120.00k0.030% $84.6k
Samuel Borgese
Independent Director9.17yrsUS$130.00k0.068% $191.1k
Douglas Babb
Independent Director2.17yrsUS$161.25k0.030% $84.6k
Carol Lynton
Independent Director3.83yrsUS$165.00k0.051% $144.8k

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: LOCO's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

El Pollo Loco Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: El Pollo Loco Holdings, Inc.
  • Ticker: LOCO
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$282.123m
  • Shares outstanding: 35.09m
  • Website: https://www.elpolloloco.com

Number of Employees


Location

  • El Pollo Loco Holdings, Inc.
  • 3535 Harbor Boulevard
  • Suite 100
  • Costa Mesa
  • California
  • 92626
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2014
EP6DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
EP6BRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2014

Biography

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. The company offers fire-grilled citrus-marinated chicken in a variety of contemporary Mexican and LA-inspired entrees, including specialty chicken burritos, chicken quesadillas, chicken tostada salads, and chicken tortilla soups, as well as under 500 calorie entrees, and variations on Pollo Bowl and Pollo salads. As of December 25, 2019, it had approximately 482 restaurants, which included 195 company-operated and 287 franchised restaurants in California, Arizona, Nevada, Texas, Utah, and Louisiana. 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 1980 and is headquartered in Costa Mesa, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:20
End of Day Share Price2020/03/30 00:00
Earnings2019/12/25
Annual Earnings2019/12/25


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.