El Pollo Loco Holdings's Earnings: A Preview

El Pollo Loco Holdings LOCO is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect El Pollo Loco Holdings to report an earnings per share (EPS) of $0.17.

Investors in El Pollo Loco Holdings are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.05, leading to a 0.67% increase in the share price on the subsequent day.

Here's a look at El Pollo Loco Holdings's past performance and the resulting price change:

Analyst Observations about El Pollo Loco Holdings

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on El Pollo Loco Holdings.

A total of 1 analyst ratings have been received for El Pollo Loco Holdings, with the consensus rating being Neutral. The average one-year price target stands at $13.0, suggesting a potential 2.36% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Serve Robotics, Potbelly and One Group Hospitality, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Serve Robotics, with an average 1-year price target of $14.67, suggesting a potential 15.51% upside.
• Analysts currently favor an Buy trajectory for Potbelly, with an average 1-year price target of $16.0, suggesting a potential 25.98% upside.
• The consensus outlook from analysts is an Outperform trajectory for One Group Hospitality, with an average 1-year price target of $9.0, indicating a potential 29.13% downside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Serve Robotics, Potbelly and One Group Hospitality are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

El Pollo Loco Holdings ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the top.

Delving into El Pollo Loco Holdings's Background

El Pollo Loco Holdings Inc operates and franchises hundreds of fast-casual chicken restaurants in the United States. Restaurant locations are typically free-standing and include drive-thrus, and menus include many low-priced options. Poultry is the company's largest food cost, accounting for roughly 38% of total food and paper cost, and the company manages that commodity price risk by using multiple suppliers and entering supply contracts of varying lengths depending on market conditions.

Understanding the Numbers: El Pollo Loco Holdings's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: El Pollo Loco Holdings's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.56%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: El Pollo Loco Holdings's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.25%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): El Pollo Loco Holdings's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.02% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): El Pollo Loco Holdings's ROA excels beyond industry benchmarks, reaching 1.28%. This signifies efficient management of assets and strong financial health.

Debt Management: El Pollo Loco Holdings's debt-to-equity ratio is below the industry average at 1.11, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for El Pollo Loco Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.