El Pollo Loco Holdings Inc (LOCO) Stock Analysis
Verdict: WATCH (do not buy)
Expanding operating margins and continuous earnings beats support valuation, but aggressive insider selling capped near $17 limits 90-day upside.
Investment score: 60/100
Analysis as of
Is El Pollo Loco Holdings Inc stock worth reviewing? The TradeMates thesis
LOCO combines solid earnings momentum and strong gross margins (53.9%) with cheap valuation multiples (12.3x P/E), but active insider selling above $16.70 and working capital deficits (current ratio 0.41) cap near-term upside.
7-factor investment score
- Valuation: 68/100 (weight 20%)
- Financial Health: 52/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 82/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 72/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
El Pollo Loco Holdings Inc opportunities and risks
What speaks for LOCO
- Discounted Valuation Multiples vs Restaurant Peers
What speaks against LOCO
- Persistent Heavy Insider Selling at Technical Resistance
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LOCO | 12.3x | 0.9x | 9.9x | 28.3% | 7.0% | 9.3% |
| PZZA | 24.9x | 0.3x | 6.6x | 23.2% | 1.4% | 5.2% |
| FWRG | 35.3x | 0.5x | 16.5x | 33.7% | 1.4% | -3.3% |
| DNUT | n/a | 0.4x | 9.5x | 46.8% | -6.5% | 7.0% |
| KRUS | n/a | 1.3x | 58.7x | 11.3% | -0.7% | 1.8% |
| NATH | 20.3x | 2.4x | 13.5x | 28.9% | 11.8% | 4.7% |
| Peer median | 20.3x | 0.5x | 13.5x | 28.9% | 1.4% | 4.7% |
Frequently asked questions about El Pollo Loco Holdings Inc (LOCO)
Is LOCO stock a good investment?
The TradeMates model rates El Pollo Loco Holdings Inc as WATCH (do not buy) with an investment score of 60/100. LOCO combines solid earnings momentum and strong gross margins (53.9%) with cheap valuation multiples (12.3x P/E), but active insider selling above $16.70 and working capital deficits (current ratio 0.41) cap near-term upside. This is algorithmic model output, not personal investment advice.
Is LOCO stock a buy?
The TradeMates model verdict for LOCO is WATCH (do not buy) with an investment score of 60/100. Treat this as a model signal to review, not a personal buy recommendation.