📊 LOCO Key Takeaways
Is LOCO a Good Investment? Thesis Analysis
El Pollo Loco demonstrates strong balance sheet management with low leverage (0.18x debt/equity) and robust cash generation (FCF $25.4M), but faces material headwinds from flat net income growth despite 3.6% revenue expansion, indicating margin compression. Critical liquidity constraints (0.32x current ratio, $6.2M cash) present operational risk despite positive operating cash flow, warranting caution until growth trajectory and working capital position improve.
Why Buy LOCO? Key Strengths
- Exceptional interest coverage of 26.9x with low leverage ratio (0.18x debt/equity) indicates very strong debt service capacity and financial stability
- Positive free cash flow of $25.4M (5.2% FCF margin) demonstrates the business generates real cash despite liquidity concerns
- Low absolute debt of $51M relative to $490M revenue provides financial flexibility for growth investments or shareholder returns
LOCO Investment Risks to Consider
- Critical liquidity crisis: current ratio of 0.32x is severely deficient, indicating potential operational constraints despite positive operating cash flow of $48.1M
- Growth stagnation: net income flat (+0.0% YoY) despite 3.6% revenue growth signals margin compression and operational challenges in cost management
- Modest profitability margins (5.4% net margin, 8.6% operating margin) limit financial flexibility and ability to absorb unexpected shocks or competitive pressures
Key Metrics to Watch
- Quarterly net income trend and operating margin trajectory to confirm margin compression reversal
- Cash balance and current ratio improvement through inventory optimization and working capital management
- Comparable store sales growth and unit-level economics to assess underlying business health beyond same-store growth
LOCO Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LOCO Profitability Ratios
LOCO vs Consumer Sector
How El Pollo Loco Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LOCO Overvalued or Undervalued?
Based on fundamental analysis, El Pollo Loco Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LOCO Balance Sheet & Liquidity
LOCO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: El Pollo Loco Holdings, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $0.74 reflects profitable operations.
LOCO Growth Metrics (YoY)
LOCO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $120.4M | $6.2M | $0.21 |
| Q2 2025 | $122.2M | $7.1M | $0.24 |
| Q1 2025 | $116.2M | $5.5M | $0.19 |
| Q3 2024 | $120.4M | $6.2M | $0.21 |
| Q2 2024 | $121.5M | $7.1M | $0.20 |
| Q1 2024 | $114.5M | $4.9M | $0.13 |
| Q3 2023 | $119.9M | $5.0M | $0.14 |
| Q2 2023 | $121.5M | $7.1M | $0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LOCO Capital Allocation
LOCO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for El Pollo Loco Holdings, Inc. (CIK: 0001606366)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | 4 | xslF345X06/form4-03192026_090349.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/form4-03192026_090313.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/form4-03192026_090327.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/form4-03192026_080325.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/form4-03192026_080332.xml | View → |
❓ Frequently Asked Questions about LOCO
What is the AI rating for LOCO?
El Pollo Loco Holdings, Inc. (LOCO) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LOCO's key strengths?
Claude: Exceptional interest coverage of 26.9x with low leverage ratio (0.18x debt/equity) indicates very strong debt service capacity and financial stability. Positive free cash flow of $25.4M (5.2% FCF margin) demonstrates the business generates real cash despite liquidity concerns.
What are the risks of investing in LOCO?
Claude: Critical liquidity crisis: current ratio of 0.32x is severely deficient, indicating potential operational constraints despite positive operating cash flow of $48.1M. Growth stagnation: net income flat (+0.0% YoY) despite 3.6% revenue growth signals margin compression and operational challenges in cost management.
What is LOCO's revenue and growth?
El Pollo Loco Holdings, Inc. reported revenue of $490.0M.
Does LOCO pay dividends?
El Pollo Loco Holdings, Inc. pays dividends, with $55.6M distributed to shareholders in the trailing twelve months.
Where can I find LOCO SEC filings?
Official SEC filings for El Pollo Loco Holdings, Inc. (CIK: 0001606366) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LOCO's EPS?
El Pollo Loco Holdings, Inc. has a diluted EPS of $0.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LOCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, El Pollo Loco Holdings, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LOCO stock overvalued or undervalued?
Valuation metrics for LOCO: ROE of 9.1% (sector avg: 18%), net margin of 5.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy LOCO stock in 2026?
Our dual AI analysis gives El Pollo Loco Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LOCO's free cash flow?
El Pollo Loco Holdings, Inc.'s operating cash flow is $48.1M, with capital expenditures of $22.6M. FCF margin is 5.2%.
How does LOCO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 5.4% (avg: 8%), ROE 9.1% (avg: 18%), current ratio 0.32 (avg: 1.5).