(LOCO) El Pollo Loco Holdings - Ratings and Ratios

El Pollo Loco Holdings, Inc. operates as a quick-service restaurant chain specializing in fire-grilled chicken and Mexican-inspired menu items. The company, which includes subsidiary El Pollo Loco, Inc., manages a combination of company-owned and franchise locations across several states, including California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. Additionally, it licenses its brand to restaurants in the Philippines, expanding its international presence. The chain is known for its emphasis on fresh ingredients and a distinctive menu that includes items like citrus-marinated chicken and handmade tortillas. The company rebranded from Chicken Acquisition Corp. to El Pollo Loco Holdings, Inc. in April 2014 and maintains its headquarters in Costa Mesa, California. Established in 1975, El Pollo Loco has grown into a recognizable name in the fast-casual dining sector, focusing on providing affordable, flavorful meals.

From a financial perspective, El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) exhibits a market capitalization of $329.03 million, with a trailing P/E ratio of 13.91 and a forward P/E of 14.03, indicating expectations for consistent earnings growth. The stock currently trades at $11.28, slightly below its 20-day and 50-day moving averages of $12.00 and $11.77, respectively, but remains close to its 200-day moving average of $12.11. This suggests a period of consolidation, with the average true range (ATR) of 0.33 reflecting relatively low volatility. The company’s price-to-book ratio of 1.31 and price-to-sales ratio of 0.70 highlight its moderate valuation relative to book value and revenue, while a return on equity (RoE) of 9.44% underscores its ability to generate profits from shareholder equity.

3-Month Forecast: Based on the convergence of technical and fundamental factors, LOCO is expected to experience a period of consolidation in the near term, with potential upside if the stock breaks above its 50-day moving average. The relatively low ATR suggests reduced volatility, which may limit significant price swings. Fundamentally, the company’s fair valuation metrics and stable financial performance position it for moderate growth, supported by its established brand presence and ongoing operational efficiency initiatives.