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

Zacks Investment Research downgraded shares of El Pollo LoCo (NASDAQ:LOCO) from a hold rating to a sell rating in a research report released on Tuesday, 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. “

Several other equities analysts have also weighed in on the stock. BidaskClub upgraded shares of El Pollo LoCo from a strong sell rating to a sell rating in a report on Saturday, September 7th. ValuEngine lowered shares of El Pollo LoCo from a hold rating to a sell rating in a report on Tuesday, July 2nd. Three investment analysts have rated the stock with a sell rating, one has given a hold rating and one has given a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $17.00.

NASDAQ LOCO traded down $0.03 during trading hours on Tuesday, hitting $11.78. The company’s stock had a trading volume of 93,419 shares, compared to its average volume of 373,808. The stock has a fifty day moving average of $10.38 and a 200 day moving average of $11.53. El Pollo LoCo has a twelve month low of $9.60 and a twelve month high of $18.47. The firm has a market capitalization of $415.90 million, a P/E ratio of 15.92, a PEG ratio of 1.61 and a beta of 0.51. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.08.

El Pollo LoCo (NASDAQ:LOCO) last announced its quarterly earnings data on Thursday, August 1st. The restaurant operator reported $0.23 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.02. El Pollo LoCo had a negative net margin of 0.36% and a positive return on equity of 10.49%. The business had revenue of $113.74 million for the quarter, compared to analyst estimates of $113.74 million. During the same period in the prior year, the business posted $0.22 earnings per share. El Pollo LoCo’s revenue was up 1.9% compared to the same quarter last year. On average, analysts predict that El Pollo LoCo will post 0.7 earnings per share for the current year.

A number of large investors have recently modified their holdings of LOCO. Bank of Montreal Can bought a new stake in shares of El Pollo LoCo during the second quarter worth $29,000. BNP Paribas Arbitrage SA increased its position in shares of El Pollo LoCo by 253.8% during the first quarter. BNP Paribas Arbitrage SA now owns 4,981 shares of the restaurant operator’s stock worth $65,000 after acquiring an additional 3,573 shares in the last quarter. Alambic Investment Management L.P. bought a new stake in shares of El Pollo LoCo during the first quarter worth $141,000. Campbell & CO Investment Adviser LLC bought a new stake in shares of El Pollo LoCo during the first quarter worth $144,000. Finally, United Services Automobile Association increased its position in shares of El Pollo LoCo by 12.4% during the second quarter. United Services Automobile Association now owns 11,566 shares of the restaurant operator’s stock worth $123,000 after acquiring an additional 1,276 shares in the last quarter. 95.55% of the stock is owned by hedge funds and other institutional investors.

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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