Last Updated: 19 Sep 2024
Executive Summary
El Pollo Loco Holdings Inc. (LOCO) is a quick service restaurant chain specializing in Mexican-style grilled chicken. The company has a strong brand presence and a loyal customer base. Financially, El Pollo Loco has been performing well, with consistent revenue growth and improving profitability. The stock is currently trading at $13.67, below its 52-week high of $14.25. Analysts have a mixed view on the stock, with some recommending a buy and others recommending a hold.
Company Overview
El Pollo Loco was founded in 1975 and is headquartered in Costa Mesa, California. The company operates over 480 restaurants in the United States and Mexico. El Pollo Loco's menu features a variety of grilled chicken dishes, as well as sides, salads, and desserts. The company has a strong focus on fresh, high-quality ingredients and offers a variety of healthy options.
Fundamental Analysis
El Pollo Loco's financial performance has been strong in recent years. The company's revenue has grown steadily, from $431.7 million in 2019 to $470.9 million in 2022. Net income has also increased, from $19.1 million in 2019 to $26.3 million in 2022. The company's profit margin has improved from 4.4% in 2019 to 5.76% in 2022.
El Pollo Loco's balance sheet is also strong. The company has $64.4 million in cash and equivalents and $134.8 million in total debt. The company's debt-to-equity ratio is 0.21, which is considered to be a healthy level.
Technical Analysis
The technical analysis of El Pollo Loco's stock price shows that the stock is currently in a downtrend. The stock price has been falling since reaching a 52-week high of $14.25 in March 2023. The stock is currently trading below its 50-day and 200-day moving averages.
The relative strength index (RSI) is a technical indicator that measures the strength of a stock's price movement. The RSI is currently at 35.5, which is considered to be a neutral level. The RSI indicates that the stock is not overbought or oversold.
Short Term Outlook
The short-term outlook for El Pollo Loco's stock is mixed. The technical analysis indicates that the stock is in a downtrend, but the RSI indicates that the stock is not oversold. The company's financial performance has been strong, but the stock price has been falling.
Long Term Outlook
The long-term outlook for El Pollo Loco's stock is positive. The company has a strong brand presence and a loyal customer base. The company's financial performance has been strong, and the company is well-positioned to continue to grow in the future.
Analyst Recommendations
Analysts have a mixed view on El Pollo Loco's stock. Some analysts recommend a buy, while others recommend a hold. The consensus price target is $13.75, which is slightly above the current stock price.
