📊 LOCO Key Takeaways
Is El Pollo Loco Holdings, Inc. (LOCO) a Good Investment?
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.
El Pollo Loco shows steady top-line growth, solid operating profitability, and strong cash generation with low leverage and excellent interest coverage. However, very weak liquidity and flat net income despite revenue growth point to limited near‑term upside and execution risks. Monitoring margin discipline and working capital improvement is key before a more constructive stance.
Why Buy El Pollo Loco Holdings, Inc. Stock? 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
- Low leverage with high interest coverage (26.9x)
- Consistent free cash flow and good cash conversion
- Stable operating margin (8.6%) with revenue growth (+3.6% YoY)
LOCO Stock Risks: El Pollo Loco Holdings, Inc. Investment Risks
- 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
- Very weak liquidity (current ratio 0.32x; low cash)
- Flat net income despite revenue growth indicates margin/cost pressure
- Restaurant sector sensitivity to labor and commodity costs
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
- Operating margin
- Current ratio
El Pollo Loco Holdings, Inc. (LOCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LOCO Profit Margin, ROE & Profitability Analysis
LOCO vs Consumer Sector: How El Pollo Loco Holdings, Inc. Compares
How El Pollo Loco Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is El Pollo Loco Holdings, Inc. Stock Overvalued? LOCO Valuation Analysis 2026
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.
El Pollo Loco Holdings, Inc. Balance Sheet: LOCO Debt, Cash & Liquidity
LOCO Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
LOCO Quarterly Earnings & 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.
El Pollo Loco Holdings, Inc. Dividends, Buybacks & Capital Allocation
LOCO SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 66% combined 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. ChatGPT: Low leverage with high interest coverage (26.9x). Consistent free cash flow and good cash conversion.
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. ChatGPT: Very weak liquidity (current ratio 0.32x; low cash). Flat net income despite revenue growth indicates margin/cost pressure.
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 66% 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).