Core Viewpoint - El Pollo Loco Holdings, Inc. (LOCO) has demonstrated significant stock performance, increasing 62.5% over the past six months, outperforming both the industry and the S&P 500, indicating strong growth potential under new leadership [1] Stock Performance - LOCO's stock closed at $13.60, below its 52-week high of $14.25 but above its low of $8.11, showcasing a strong recovery [1] - The stock is trading above its 50-day moving averages, indicating robust upward momentum and market confidence [3] Sales and Growth Factors - The company reported a 4.5% increase in system-wide comparable restaurant sales in the fiscal second quarter, driven by its signature Fire-Grilled Chicken and value offerings [5] - Strategic cost-saving measures and new leadership appointments are expected to enhance operational efficiency and franchise growth, with a new prototype design aimed at reducing unit build costs to $1.8 million [5][6] Leadership and Strategic Initiatives - The new leadership under CEO Liz Williams is focused on modernizing the brand and improving unit-level margins, with expectations to achieve 18% restaurant contribution margins by 2025 [6] - The company has relaunched menu items and introduced new sauces at competitive prices, contributing to positive sales feedback [6] Earnings Estimates - Analysts have revised the Zacks Consensus Estimate for LOCO's earnings per share upward by 12.7% to 80 cents for the current fiscal year and by 14.1% to 89 cents for the next fiscal year [7] Valuation - LOCO is currently valued at a forward 12-month P/E ratio of 15.7, which is significantly lower than the industry average of 24.57 and the S&P 500's ratio of 21.45, indicating a potential investment opportunity [8] Conclusion - The combination of strategic leadership, cost-saving initiatives, menu innovations, and favorable earnings revisions positions LOCO as a compelling long-term growth opportunity at a discounted price [10]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Industry Overview - The Zacks Retail – Restaurants industry is facing challenges due to high wages, food cost inflation, and declining customer traffic, leading to cautious consumer spending on dining out [1][3] - Despite these challenges, rapid increases in menu prices and average check growth, along with expansion efforts, present positive prospects for the industry [1] Trends Impacting the Industry - Traffic woes persist, with a 2.3% decline in customer traffic for quick-service restaurant chains in the second quarter, primarily due to rising menu prices [3] - Digital innovation and partnerships with delivery channels are driving growth, with operators focusing on self-service kiosks and loyalty programs to enhance sales [4] - Off-premise sales, including delivery and takeout, are becoming key growth drivers, with many operators testing ghost kitchens and connected curbside services [5] Industry Performance - The Zacks Retail – Restaurants industry has underperformed the S&P 500 Composite, growing only 3.6% over the past year compared to the S&P 500's 25.3% increase [8] - The industry's forward 12-month P/E ratio is 23.96X, slightly above the S&P 500's 21.67X and the sector's 22.64X [9] Company Highlights - **Texas Roadhouse (TXRH)**: The company is experiencing positive traffic trends, with a projected sales increase of 39.2% and earnings growth of 15.6% for 2024. Shares have surged 62.7% in the past year [10] - **El Pollo Loco (LOCO)**: The company reported a 4.5% increase in system-wide comparable restaurant sales and improved store margins. Anticipated sales and earnings growth for 2024 is 2% and 12.7%, respectively, with shares gaining 44.7% in the past year [12] - **Potbelly (PBPB)**: The company remains optimistic despite macroeconomic challenges, with a projected earnings increase of 33.3% for fiscal 2024. Strong customer satisfaction and successful digital initiatives are key growth drivers [14][16][18]

The U.S. restaurant industry grew at a solid pace over the past two years, amid price pressures and higher wages and food costs. The growth has somewhat slowed this year but the industry has still made a solid effort to hold its ground.Restaurant sales have climbed over the past few months, benefiting a large number of restaurant brands such as El Pollo Loco Holdings, Inc. (LOCO) ,Meritage Hospitality Group Inc. (MHGU) , Potbelly Corporation (PBPB) , Texas Roadhouse, Inc. (TXRH) and Wingstop (WING) , which ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has El Pollo Loco Holdings (LOCO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.El Pollo Loco Holdings is a member of our Retail-Wholesale group, which includes 209 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The ...

The U.S. restaurant industry continues to be impacted by high wages, food cost inflation and traffic woes in 2024 after two years of strong growth. The Zacks defined Retail – Restaurants industry is currently in the bottom 35% of the Zacks Industry Rank. In the past year, the industry has grown just 3.3%, while its year-to-date return is a mere 1.1%. The broad-market index — the S&P 500 — has rallied 29.3% and 18.8%, respectively, over these periods. Since the restaurant industry is ranked in the bottom hal ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming for profitable trades as stocks continue in their established direction [1]. Company Overview: El Pollo Loco Holdings (LOCO) - El Pollo Loco Holdings currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [2]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B have historically outperformed the market over the following month [2]. Momentum Analysis - LOCO shares have increased by 10.39% over the past week, significantly outperforming the Zacks Retail - Restaurants industry, which rose by 0.64% [3]. - Over the past month, LOCO's price change is 14.58%, compared to the industry's 1.17% [3]. - In the last quarter, LOCO shares have risen by 26.51%, and over the past year, they have gained 38.88%, while the S&P 500 has moved 5.31% and 28.61%, respectively [4]. Trading Volume - The average 20-day trading volume for LOCO is 290,067 shares, which serves as a bullish indicator when combined with rising stock prices [4]. Earnings Outlook - In the past two months, three earnings estimates for LOCO have been revised upwards, increasing the consensus estimate from $0.71 to $0.80 [5]. - For the next fiscal year, three estimates have also moved higher, with no downward revisions [5]. Conclusion - Given the positive momentum indicators and earnings outlook, LOCO is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [6].

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

COSTA MESA, Calif., Aug. 12, 2024 (GLOBE NEWSWIRE) -- El Pollo Loco (Nasdaq: LOCO), the nation's leading fire-grilled chicken chain, has announced an exciting partnership with content creator Yuri Lamasbella. Following successful collaborations, El Pollo Loco has appointed her as its first-ever Kreative Director for the Double Chopped Salads campaign launch. In this role, the TikTok star brought her fresh, unique creativity and expertise to create a dynamic campaign for the brand’s Double Chopped Salads. Th ...

COSTA MESA, Calif., Aug. 07, 2024 (GLOBE NEWSWIRE) -- If you're a busy parent looking for a quick, delicious, family-friendly meal that isn't fried, an athlete looking for extra protein, or someone who just wants to eat something tasty and flavorful at a reasonable price, El Pollo Loco has your back. The Southern California-based company is extending a special offer to customers who helped score this year's win of USA TODAY 10Best Readers' Choice Award for Best Quick, Healthy Food. Now through August 31st, ...