
LOCO Stock Forecast & Price Target
LOCO Analyst Ratings
Bulls say
El Pollo Loco Holdings is experiencing strong sales momentum, thanks to a successful brand transformation and menu innovation. Their growth through franchising, while yielding high-margin revenue, also gives up some operational control. There are risks in consumer spending and high store concentrations in the Greater Los Angeles market, but the stock is currently undervalued based on its EV/EBITDA multiple.
Bears say
El Pollo Loco Holdings is currently trading at a discounted EV/adjusted EBITDA multiple of 4.8x, indicating that the market may be undervaluing the company. This is possibly due to concerns surrounding the current state of the consumer environment. However, with the company's successful brand transformation and plans for accelerating franchisee unit growth, there is potential for growth in the future, making this a good entry point for investors. An upgraded Buy rating is justified with a target price of $14, based on a relatively conservative 6x forward multiple on FY27 AEBITDA estimates.
This aggregate rating is based on analysts' research of El Pollo Loco and is not a guaranteed prediction by Public.com or investment advice.
LOCO Analyst Forecast & Price Prediction
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