El Pollo Loco Down on Revenue Miss

The company has a market cap of $704 million and the number of outstanding shares has been calculated to be 38,264,000 shares. The Company’s 2014 pro forma results included an estimated $0.01 per share positive impact due to a 53rd week during the fiscal year. El Pollo LoCo Holdings Inc has a 1-year low of $17.51 and a 1-year high of $40.89.


Today’s drop of El Pollo LoCo Holdings Inc (NASDAQ:LOCO)’s stock has extended the decline of the last couple of months and has further disappointed the investors that have been bullish. (NASDAQ:LOCO) should head towards $27.67 per share according to 3 Analysts in consensus.

Labor and related expenses, as the percentage of company restaurant sales, increased 50 bps year over year to 25.2%, driven primarily by higher workers compensation and health insurance claims. However, the standard deviation of short term price estimate has been valued at 0.58.

The company had previously reported its slowest pace of traffic growth of 0.1 percent for the first quarter.

Nevertheless, El Pollo Loco CEO Steve Sather appeared fairly pleased with the quarterly results.

William Blair reiterated an Outperform rating. Two research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock.

Company-operated restaurant revenue in the second quarter of 2015 increased 2.7% to $83.6 million, from $81.4 million in the same period past year. Also, Director Samuel N. Borgese sold 25,249 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $20.92, for a total transaction of $359,824.00. The shares were sold at an average price of $21.00, for a total value of $530,229.00. The disclosure for this sale can be found here. The company’s 50-day moving average is $19.29 and its 200 day moving average is $23.47.


El Pollo Loco also said it would open three fewer franchised restaurants this year than it expected. Now the company Insiders own 44.8% of El Pollo Loco Holdings, Inc. Mr. Sather expects that this will allow them to return to their winning QSR+ strategy of introducing exciting new premium Mexican entrees like the new chicken and shrimp payable which is in restaurants now to a base of underlying value frequency drivers like the $5 combo. The Company is a subsidiary of Trimaran Pollo Partners, LLC.

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