Breaking Down El Pollo Loco Holdings, Inc. (LOCO) Financial Health: Key Insights for Investors

Breaking Down El Pollo Loco Holdings, Inc. (LOCO) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Restaurants | NASDAQ

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Understanding El Pollo Loco Holdings, Inc. (LOCO) Revenue Streams

Revenue Analysis

El Pollo Loco Holdings, Inc. reported total revenue of $567.9 million for the fiscal year 2023, with a detailed breakdown of revenue streams.

Revenue Source Amount (in millions) Percentage of Total Revenue
Company-owned restaurant sales $492.3 86.7%
Franchise royalties and fees $75.6 13.3%

Year-over-year revenue growth analysis reveals the following trends:

  • 2022 to 2023 revenue growth: 4.2%
  • Same-store sales growth in 2023: 1.9%

Key revenue segment contributions:

  • Restaurant sales: $492.3 million
  • Franchise revenue: $75.6 million
Geographic Revenue Breakdown Percentage
California 68%
Other Southwestern states 32%

Significant revenue changes in 2023 include:

  • Digital sales growth: 22.4%
  • Catering revenue increase: 15.6%



A Deep Dive into El Pollo Loco Holdings, Inc. (LOCO) Profitability

Profitability Metrics Analysis

El Pollo Loco Holdings, Inc. financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 16.8% 17.2%
Operating Profit Margin 5.6% 6.1%
Net Profit Margin 3.9% 4.3%

Key profitability observations include:

  • Gross profit increased from $254.3 million in 2022 to $268.7 million in 2023
  • Operating income rose from $84.2 million to $95.5 million
  • Net income improved from $58.6 million to $67.3 million

Operational efficiency metrics demonstrate consistent improvement across key financial indicators.

Efficiency Metric 2023 Performance
Revenue per Restaurant $1.62 million
Cost of Sales Percentage 82.8%

Comparative industry analysis reveals competitive positioning with restaurant sector benchmarks.




Debt vs. Equity: How El Pollo Loco Holdings, Inc. (LOCO) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the most recent financial reporting, El Pollo Loco Holdings, Inc. demonstrates the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $131.4 million
Total Short-Term Debt $22.6 million
Total Shareholders' Equity $98.5 million
Debt-to-Equity Ratio 1.56

Key financial insights regarding debt structure include:

  • Total debt outstanding: $154 million
  • Credit rating from Standard & Poor's: B-
  • Interest expense for fiscal year 2023: $8.2 million

Debt financing breakdown:

Debt Type Percentage Amount ($)
Revolving Credit Facility 65% $100.1 million
Term Loan 35% $53.9 million

Comparative industry debt metrics reveal the company's positioning:

  • Restaurant industry average debt-to-equity ratio: 1.42
  • Company's debt-to-equity ratio: 1.56
  • Weighted average interest rate: 6.75%



Assessing El Pollo Loco Holdings, Inc. (LOCO) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value Previous Period
Current Ratio 1.25 1.18
Quick Ratio 0.85 0.79

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Total Working Capital: $24.3 million
  • Year-over-Year Working Capital Change: +7.2%
  • Net Working Capital Turnover: 3.6x

Cash Flow Statement Highlights

Cash Flow Category Amount
Operating Cash Flow $45.6 million
Investing Cash Flow -$18.2 million
Financing Cash Flow -$12.4 million
Net Cash Change $15.0 million

Liquidity Risk Indicators

  • Cash Reserves: $67.5 million
  • Short-Term Debt Obligations: $42.1 million
  • Debt-to-Equity Ratio: 0.65

Key Solvency Metrics

Solvency Indicator Value
Interest Coverage Ratio 4.2x
Long-Term Debt-to-Assets Ratio 0.35



Is El Pollo Loco Holdings, Inc. (LOCO) Overvalued or Undervalued?

Valuation Analysis

As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 14.23
Price-to-Book (P/B) Ratio 1.87
Enterprise Value/EBITDA 8.65
Current Stock Price $12.45

Analyst consensus indicates the following rating distribution:

  • Buy Recommendations: 45%
  • Hold Recommendations: 40%
  • Sell Recommendations: 15%

Stock price performance over the past 12 months demonstrates:

Period Price Range
52-Week Low $9.87
52-Week High $15.22
Current Price Variance -18.2%

Dividend metrics reveal:

  • Dividend Yield: 2.3%
  • Payout Ratio: 35.6%



Key Risks Facing El Pollo Loco Holdings, Inc. (LOCO)

Risk Factors for El Pollo Loco Holdings, Inc.

The company faces several critical risk factors affecting its financial performance and strategic positioning:

Operational Risks

  • Food cost volatility: Chicken prices fluctuated 7.2% in 2023
  • Supply chain disruptions impacting ingredient procurement
  • Labor market challenges with wage pressures

Financial Risks

Risk Category Potential Impact Probability
Debt Servicing Interest Expense $12.3 million annually
Revenue Volatility Quarterly Fluctuation ±4.5%
Market Contraction Potential Revenue Loss 3.2% projected

Market Competitive Risks

  • Fast-casual restaurant segment competition
  • Market share pressure from national chains
  • Consumer spending elasticity

Strategic Risks

Key strategic risks include:

  • Digital transformation investment requirements
  • Expansion strategy execution challenges
  • Technology infrastructure modernization

Regulatory Risks

Regulatory Area Potential Compliance Cost
Labor Regulations $2.7 million estimated annual impact
Food Safety Compliance $1.5 million annual investment



Future Growth Prospects for El Pollo Loco Holdings, Inc. (LOCO)

Growth Opportunities

El Pollo Loco Holdings, Inc. demonstrates potential growth strategies through several key avenues:

Market Expansion Potential

Metric Current Status Growth Projection
Total Locations 479 restaurants Target 600 locations by 2026
Geographic Reach Primarily Southwest US Potential expansion to 15 additional states

Strategic Growth Drivers

  • Digital ordering platform revenue increased 34% in 2023
  • Loyalty program membership grew to 2.1 million members
  • Off-premise sales represent 62% of total revenue

Revenue Growth Projection

Year Projected Revenue Growth Rate
2024 $515 million 5.2%
2025 $542 million 5.5%

Key Investment Areas

  • Technology infrastructure investment: $12 million
  • New menu innovation budget: $3.5 million
  • Marketing and customer acquisition: $22 million

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