El Pollo Loco Holdings develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name in the United States. The company was founded in 1980 and is based in Costa Mesa, California.
LOCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for El Pollo Loco Holdings Inc. To summarize, we found that El Pollo Loco Holdings Inc ranked in the 43th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for LOCO, they are:
El Pollo Loco Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.42% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 24.16% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LOCO, try CMCSA, F, UFI, NYT, and CCK.
El Pollo Loco Holdings, Inc. (LOCO) Q2 2020 Earnings Conference Call July 30, 2020, 16:30 ET Company Participants Laurance Roberts - CFO & Treasurer Bernard Acoca - President, CEO & Director Conference Call Participants Jack Corrigan - SunTrust Robinson Humphrey Andrew Barish - Jefferies Matthew DiFrisco - Guggenheim Securities Andrew...
COSTA MESA, Calif., July 30, 2020 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (Nasdaq: LOCO) today announced financial results for the 13‑week period ended June 24, 2020 and provided a business update on the impact of the COVID‑19 pandemic. Highlights for the second quarter ended June 24, 2020, compared to the second quarter ended June 26, 2019 were as follows: * Total revenue was $99.6 million compared to $113.7 million. * System-wide comparable restaurant sales decreased 9.7%, including an 8.5% decrease for company-operated restaurants, and a 10.6% decrease for franchised restaurants. * Net income was $5.5 million, or $0.16 per diluted share, compared to net income of $14.1 million, or $0.37 per diluted share in the prior year period. During the second quarter of 2020, the Co...