By Carly Forster
El Pollo Loco (NASDAQ: LOCO) is a Santa Clara, California based fast-food restaurant chain known for its Mexican-style grilled chicken. On September 4th, the company announced its second quarter earnings report ending June 25th and its results faired quite well. This is El Pollo Loco’s first earnings report since going public on July 25th of this year.
During its Q2 results, El Pollo Loco reported $0.16 Non-GAAP earnings per share, matching analysts’ consensus estimate. The restaurant had profit of $86.9 million for the quarter, compared to the analyst consensus estimate of $86.4 million. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. On average, analysts expect that El Pollo Loco will post $0.53 EPS for the current fiscal year.
Steve Sather, President and Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “We’re pleased with the consistent strength of our results, which included a 5.4% increase in system-wide comparable restaurant sales and a 10.0% increase in pro forma net income in the second quarter. Our success continues to be driven by our compelling value proposition and the growing appeal of healthier, better for you offerings found on our menu. Our signature, citrus marinated fire grilled chicken and hand chopped entrees offered at quick service price points reinforce our QSR plus positioning.”
Shares of El Pollo Loco opened at $36.54 on Friday, September 5th. The restaurant chain has a 1-year high of $41.70 and a 1-year low of $18.48. The stock’s daily moving average is $35.90 and has a 50-day moving average of $33.62. The market cap for El Pollo Loco is $1.30 billion and its P/E ratio is currently not applicable.
On September 6th, Seeking Alpha blogger, The Value Investor, noted he appreciated the long-term growth potential of El Pollo Loco after its solid Q2 report. He went on to say that “at current levels, a short is too risky given the momentum within the sector” but he has great interest in watching the company’s developments in the long term. The Value Investor currently has a +8.5% average return on all stocks he has rated, a 65% success rate recommending stocks, and is ranked #77 out of 3773 bloggers on TipRanks.
On the other hand, on September 5th, Seeking Alpha blogger, The Specialist, was rather bearish on El Pollo Loco, despite its decent Q2 results. He claimed, “The earnings results needed to blow the estimates away in order to be another Chipotle Mexican Grill. They didn’t. This confirms my bearish opinion.” The Specialist currently has a +9.8% average return on all stocks he has rated and a 57% success rate recommending stocks.
Each financial expert has a different opinion about the growth potential of El Pollo Loco. Whose recommendation do you trust?
To see more recommendations for LOCO, visit TipRanks today!
Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com