El Pollo Loco Holdings

LOCO

Restaurants · Consumer Cyclical

Price

$16.03

+0.66 (+4.29%)

Market Cap

$488.2M

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jul 1, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Mixed

Stability

Exceptional

Valuation

Good

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Share count falling — buybacks

−19.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 36.4M (2021) → 29.5M (2025)

Winston Score History

The full picture

El Pollo Loco is a fast-food chain that specializes in Mexican-style grilled chicken. Its menu features citrus-marinated chicken, burritos, tacos, and bowls, aimed at everyday diners looking for a quick, affordable meal. The chain is concentrated in the western United States, particularly California, and positions itself between traditional fast food and fast-casual dining.

The company makes money through a mix of company-owned restaurant sales and franchise royalty fees collected from independently operated locations. With roughly 500 restaurants, El Pollo Loco operates almost entirely in the western U.S., which limits its geographic diversification compared to national chains. Its main competitive edge is its distinct grilled chicken recipe and loyal regional customer base, but that same regional concentration is also a key risk — any economic slowdown or competition surge in California could meaningfully hurt results. Expanding its franchise footprint beyond the West is the primary growth lever management is pursuing.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+79.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

16.1%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Runway

~2 months

$13M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

El Pollo Loco Holdings has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

32.8%

Modest — 32.8% gross margin

Profit after running costs

Operating Margin

14.4%

Healthy — 14.4% operating margin

Return on the money invested

ROCE

10.5%

Below par — 10.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+4.4%

Slow sales growth (+4.4% YoY)

Profit growth

EPS YoY

+40.5%

Earnings growing fast (+40.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

84%

Modest — 84% of profit becomes cash

Spare cash per sale

FCF Margin

-1.1%

Burning cash (-1.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.60

Conservative — low debt load (0.60)

Covers its interest

Interest Cover

15.04x

Comfortably covers interest (15.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.6x

Attractive valuation — P/E 13.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-2.0

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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