El Pollo Loco: The Almost Chipotle Contender

Deiya Pernas, CFA
996 Followers

Summary

  • El Pollo Loco receives a neutral rating due to doubts about its sustainability and fierce competition in the fast-food industry.
  • The company's average check sizes are higher, and traffic is lower compared to competitors.
  • Opportunities for El Pollo Loco include increasing digital sales penetration, capitalizing on trends in healthier food options and Hispanic cuisine, and expanding into new markets.

Coronavirus Pandemic Causes Climate Of Anxiety And Changing Routines In America

Ethan Miller

Neutral rating on El Pollo Loco (NASDAQ:LOCO) this month. Through extensive research, analysis, and insider talks, it became apparent that our initial hypothesis for a “buy” rating did not materialize. Our principle: if we don’t add it to our portfolio, no “buy” rating. Despite lacking excitement, neutral ratings are

This article was written by

996 Followers
Deiya Pernas is a former Deputy Chief Investment Officer of a 3.5 billion dollar investment manager. His area of expertise lies in constructing forward-looking views of equities that go against prevailing market perception. Pernas Research is the company he co-manages with his brother, Dean. Over the past three and five-year periods, they have consistently outperformed market averages. Additional research and their published track record can be found at Pernas Research. At Pernas Research, their research philosophy is firmly grounded in the investment strategy they have refined throughout their careers. Their primary focus is on identifying attractively-priced companies that fall into two categories: those with the potential to sustain and expand their future cash flows, and those with cash flows that require improvement but possess a clear path to recovery....Education: University of California, Berkeley | BA Economics....INVESTMENT DISCLAIMERS & INVESTMENT RISKS....Past performance is not necessarily indicative of future results. All investments carry significant risk and all investment decisions of an individual remain the specific responsibility of that individual. There is no guarantee that our research, analysis, and forward-looking price targets will result in profits or that they will not result in a full loss or losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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