LOCO will report on earning on Thursday March 11th
El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) is a Mexican restaurant chain. The chain has successfully opened and operated more than 475 corporate and franchise restaurants in Arizona, California, Nevada, Texas, Utah, and Louisiana.
On March 9th, El Pollo Loco presented its new design “Restaurant of the Future”. LOCO has remodeled its first three restaurants to improve convenience outside of the company. In the company’s press release on the matter, El Pollo Loco stated that its “redesigned restaurant designs are inspired by the changing habits of consumers to enjoy a more digital and contactless experience that has inevitably been accelerated by the COVID-19 pandemic. ” El Pollo Loco is also expected to release its quarterly and annual results after close of trading on Thursday March 11th.
LOCO managed to beat earnings expectations in all four of its most recent earnings reports as restaurants were hit hard across the industry during the COVID-19 pandemic shutdown. For the fourth quarter of 2019, El Pollo Loco beat analysts’ estimates by a margin of $ 0.02 and reported earnings per share (EPS) of $ 0.18. For the first quarter of 2020, LOCO cut its earnings per share to $ 0.16 and still beat expectations with a margin of $ 0.06. For the second quarter of 2020, El Pollo Loco saw earnings surge, reporting earnings per share of $ 0.20, beating Wall Street estimates by $ 0.15. In its most recent quarterly report, LOCO reported earnings per share of $ 0.28, beating expectations with a margin of $ 0.06.
Basically, El Pollo Loco shares are currently at the upper end of the valuation spectrum. The El Pollo Loco share is currently trading at a price-earnings-ratio of 30.56. For the past twelve months, the company posted net income of $ 19 million, a decrease of less than $ 5 million from the previous year. Overall, El Pollo Loco has minimized the losses from the pandemic well. LOCO’s revenue has currently fallen by around $ 18 million since fiscal 2019.
LOCO is up 6% year-to-date with longer-term support developing at the $ 18 level – a former place of resistance for stocks. El Pollo Loco stock is also up a whopping 106% year over year and up 215% from its record low of $ 6.15 in March 2020. In fact, equity hit a five-year high of $ 21.96 in late January.