
LOCO Stock Forecast & Price Target
LOCO Analyst Ratings
Bulls say
El Pollo Loco Holdings Inc is demonstrating a strong financial outlook due to significant operating efficiencies, leading to a revised guidance for its restaurant-level margin (RLM) expansion of 16-17% for 2024, up from previous estimates, with a longer-term target of approaching 18% by 2025. The company’s initiatives, which focus on enhancing unit economics, improving operational standards, and ensuring cost efficiencies, are anticipated to strengthen franchisee sales efforts and foster unit growth starting in 2026 and beyond. Additionally, the strategic repositioning of the brand and menu innovations aimed at providing compelling price points are expected to contribute positively to overall profitability and market competitiveness.
Bears say
El Pollo Loco Holdings Inc. faces significant headwinds due to a potential decline in consumer spending influenced by macroeconomic factors, such as rising gasoline prices and increasing unemployment, which could negatively impact customer traffic and sales. Additionally, labor shortages, particularly in California, may lead to reduced operating hours and service levels, further jeopardizing revenue generation. The company's cautious approach to development, including lowered guidance for new openings and remodels, alongside decelerating same-store sales growth, underlines the challenges it faces in navigating a difficult operating environment.
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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