Zacks Investment Research Lowers El Pollo LoCo (NASDAQ:LOCO) to Sell

Zacks Investment Research cut shares of El Pollo LoCo (NASDAQ:LOCO) from a hold rating to a sell rating in a report issued on Tuesday morning, Zacks.com reports.

According to Zacks, “El Pollo Loco Holdings, Inc., through its subsidiary, develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco. The restaurants specializes in flame-grilled chicken in a variety of contemporary Mexican-influenced entrees, including specialty chicken burritos, chicken quesadillas, chicken tortilla soup, Pollo Bowls and Pollo Salads. El Pollo Loco Holdings, Inc. is headquartered in Costa Mesa, California. “

Other analysts have also recently issued research reports about the company. ValuEngine cut El Pollo LoCo from a hold rating to a sell rating in a research report on Tuesday, July 2nd. BidaskClub upgraded El Pollo LoCo from a strong sell rating to a sell rating in a research report on Saturday, August 3rd. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and one has issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $17.00.

Shares of LOCO opened at $9.84 on Tuesday. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.08. The business has a 50-day simple moving average of $10.39 and a two-hundred day simple moving average of $12.00. The stock has a market cap of $363.59 million, a price-to-earnings ratio of 13.52, a PEG ratio of 1.40 and a beta of 0.46. El Pollo LoCo has a 52 week low of $9.60 and a 52 week high of $18.47.

El Pollo LoCo (NASDAQ:LOCO) last issued its quarterly earnings results on Thursday, August 1st. The restaurant operator reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.02. El Pollo LoCo had a positive return on equity of 10.49% and a negative net margin of 0.36%. The business had revenue of $113.74 million during the quarter, compared to analysts’ expectations of $113.74 million. During the same quarter in the prior year, the business posted $0.22 earnings per share. The business’s quarterly revenue was up 1.9% on a year-over-year basis. On average, equities analysts anticipate that El Pollo LoCo will post 0.7 earnings per share for the current fiscal year.

Several large investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP grew its position in shares of El Pollo LoCo by 4.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,036,011 shares of the restaurant operator’s stock worth $30,886,000 after purchasing an additional 92,703 shares in the last quarter. Investment Counselors of Maryland LLC grew its position in shares of El Pollo LoCo by 66.4% during the second quarter. Investment Counselors of Maryland LLC now owns 1,430,820 shares of the restaurant operator’s stock worth $15,253,000 after purchasing an additional 571,125 shares in the last quarter. Sapience Investments LLC purchased a new position in El Pollo LoCo during the 2nd quarter valued at approximately $7,005,000. Northern Trust Corp grew its holdings in El Pollo LoCo by 2.8% during the 2nd quarter. Northern Trust Corp now owns 263,938 shares of the restaurant operator’s stock valued at $2,814,000 after buying an additional 7,309 shares in the last quarter. Finally, Nuveen Asset Management LLC purchased a new position in El Pollo LoCo during the 2nd quarter valued at approximately $2,773,000. Hedge funds and other institutional investors own 94.50% of the company’s stock.

About El Pollo LoCo

El Pollo Loco Holdings, Inc, through its subsidiary El Pollo Loco, Inc, develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. The company offers citrus-marinated, flame-grilled chicken, and handcrafted entrée products, including specialty chicken burritos, chicken quesadillas, and chicken tortilla soup, as well as under 500 calorie entrees, and Pollo Bowl and Pollo salad products.

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