-0.42%
4.03%
-0.75%
-0.08%
24.68%
-11.55%
-12.33%

Company Description

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.As of May 04, 2022, the company operated 480 restaurants comprising 189 company-operated and 291 franchised restaurants located in California, Nevada, Arizona, Texas, Utah, and Louisiana.It also licenses one restaurant in the Philippines.


The company was formerly known as Chicken Acquisition Corp.and changed its name to El Pollo Loco Holdings, Inc.in April 2014.


El Pollo Loco Holdings, Inc.was founded in 1975 and is headquartered in Costa Mesa, California.

Market Data

Last Price 11.87
Change Percentage -0.42%
Open 11.89
Previous Close 11.92
Market Cap ( Millions) 355
Volume 186133
Year High 14.25
Year Low 8.17
M A 50 11.95
M A 200 11.8

Financial Ratios

FCF Yield 8.08%
Dividend Yield 0.00%
ROE 9.53%
Debt / Equity 103.37%
Net Debt / EBIDTA 462.71%
Price To Book 1.36
Price Earnings Ratio 14.39
Price To FCF 12.38
Price To sales 0.75
EV / EBITDA 11.05

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Company-operated Restaurant

Expected Growth : 2.0 %

What the company do ?

Company-operated restaurants are El Pollo Loco-branded restaurants owned and operated by El Pollo Loco Holdings, Inc., offering flame-grilled chicken and Mexican-inspired menu items.

Why we expect these perspectives ?

Company-operated restaurant growth driven by 1) menu innovation, 2) marketing efforts focusing on value and convenience, 3) remodels and technology upgrades enhancing customer experience, and 4) strategic unit expansion in underserved markets, resulting in a 2.0% growth rate.

Segment nΒ°2 -> Franchise

Expected Growth : 1.8 %

What the company do ?

El Pollo Loco is a fast-food franchise serving fire-grilled chicken and Mexican-inspired dishes, offering a unique flavor profile and convenient service.

Why we expect these perspectives ?

El Pollo Loco's 1.8% growth is driven by increasing same-store sales, successful marketing campaigns, and strategic menu innovation. Additionally, the company's focus on digital transformation, including mobile ordering and delivery, has contributed to sales growth. Furthermore, El Pollo Loco's expansion into new markets and remodeling of existing locations have also supported the company's growth momentum.

Segment nΒ°3 -> Franchise Advertising Fee

Expected Growth : 1.5 %

What the company do ?

Franchise Advertising Fee from El Pollo Loco Holdings, Inc. is a fee paid by franchisees to support brand advertising and marketing efforts, typically a percentage of gross sales.

Why we expect these perspectives ?

El Pollo Loco's 1.5% growth in Franchise Advertising Fee is driven by increasing same-store sales, expansion of digital marketing efforts, and strategic partnerships. Additionally, the company's focus on menu innovation, customer loyalty programs, and targeted advertising campaigns contribute to the growth. Furthermore, the rise of online ordering and delivery services also boosts advertising revenue.

El Pollo Loco Holdings, Inc. Products

Product Range What is it ?
Fire-Grilled Chicken El Pollo Loco's signature product, made with fresh, never frozen chicken, marinated in a proprietary blend of herbs and spices, then grilled to perfection.
Loco Meals A variety of meal options that include a fire-grilled chicken entree, along with a side and a drink.
Chicken Salads Fresh, made-to-order salads featuring El Pollo Loco's fire-grilled chicken, mixed greens, and a variety of toppings.
Tostadas Crispy corn tortillas topped with fire-grilled chicken, fresh lettuce, and a variety of toppings.
Soups Creamy and flavorful soups made with El Pollo Loco's fire-grilled chicken and fresh vegetables.
Sides A variety of sides, including Spanish rice, beans, and vegetables, all made with fresh ingredients.
Desserts Sweet treats, such as churros and cookies, made fresh in-house.
Catering El Pollo Loco's catering service, offering a variety of options for events and gatherings.

El Pollo Loco Holdings, Inc.'s Porter Forces

El Pollo Loco's menu items are moderately substitutable with other fast-food chains, but the brand's unique flavor profile and value proposition help maintain customer loyalty.

Customers have some bargaining power due to the competitive fast-food market, but El Pollo Loco's strong brand reputation and customer loyalty mitigate this force.

El Pollo Loco has a diversified supplier base, reducing dependence on individual suppliers and minimizing their bargaining power.

While new entrants can potentially disrupt the market, El Pollo Loco's established brand and operational efficiency create barriers to entry.

The fast-food industry is highly competitive, with many established players vying for market share, making rivalry intense.

Capital Structure

Value
Debt Weight 29.25%
Debt Cost 3.95%
Equity Weight 70.75%
Equity Cost 10.81%
WACC 8.80%
Leverage 41.34%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
CAKE The Cheesecake Factory Incorporated operates restaurants. It operates two bakeries that produces cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and …
NATH Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. The company owns and franchises restaurants under the Nathan's Famous brand name, as well as sells products bearing …
DIN Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates through five segments: Applebee's Franchise Operations, International …
FAT FAT Brands Inc., a multi-brand franchising company, acquires, develops, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. As of August 22, 2022, it …
PZZA Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
11.87$
Current Price
11.87$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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