El Pollo Loco Holdings (LOCO) Exceeds Expectations for Q4 Earnings

El Pollo Loco Holdings Reports Strong Quarterly Earnings

El Pollo Loco Holdings (LOCO) announced earnings of $0.25 per share for the latest quarter, surpassing the Zacks Consensus Estimate of $0.21 per share. This result is an improvement from last year's $0.20 per share, with all figures adjusted for one-time items.

The company delivered an earnings surprise of 20.95%. In the previous quarter, analysts anticipated earnings of $0.23 per share, but El Pollo Loco reported $0.27 per share, resulting in a surprise of 17.39%.

Over the past year, El Pollo Loco has exceeded consensus EPS forecasts in three out of four quarters.

Operating within the Zacks Retail - Restaurants sector, El Pollo Loco generated $123.52 million in revenue for the quarter ending December 2025, falling short of the consensus estimate by 1.75%. This compares to $114.28 million in revenue from the same period last year. The company has outperformed revenue expectations twice in the last four quarters.

The future direction of the stock's price will largely depend on management's insights during the earnings call, as well as upcoming earnings projections.

Since the start of the year, El Pollo Loco shares have risen approximately 6.4%, while the S&P 500 has declined by 1%.

Looking Ahead: El Pollo Loco's Prospects

Although El Pollo Loco has outperformed the broader market so far this year, investors are now considering what lies ahead for the stock.

One key factor in evaluating the stock's future is its earnings outlook, which includes both current consensus forecasts and recent changes to those estimates.

Research indicates that short-term stock performance is closely linked to shifts in earnings estimates. Investors can monitor these changes themselves or utilize tools like the Zacks Rank, which has a proven record of leveraging earnings estimate revisions.

Prior to this earnings announcement, El Pollo Loco's estimate revisions trend was negative. Although the direction and scale of these revisions may shift following the latest results, the current Zacks Rank for the stock is #4 (Sell), suggesting the shares may lag the market in the near term.

It will be important to observe how estimates for upcoming quarters and the current fiscal year evolve. The consensus EPS estimate stands at $0.22 on $122.1 million in revenue for the next quarter, and $0.97 on $498.77 million in revenue for the current fiscal year.

Investors should also consider industry trends, as these can significantly influence stock performance. The Zacks Industry Rank places Retail - Restaurants in the bottom 31% out of more than 250 industries. Historically, the top half of Zacks-ranked industries outperform the lower half by more than two to one.

Industry Update: Dave & Buster's Earnings Preview

Another company in the same sector, Dave & Buster's (PLAY), has yet to release its results for the quarter ending January 2026.

Dave & Buster's, which operates a chain of restaurants and entertainment venues, is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decrease of 43.5%. The consensus EPS estimate has remained unchanged over the past month.

Revenue for Dave & Buster's is projected to reach $556.28 million, marking a 4.1% increase compared to the same quarter last year.

Is El Pollo Loco Holdings a Good Investment?

Thinking about investing in El Pollo Loco Holdings, Inc. (LOCO)? For insights on top stocks to buy in the next 30 days, Zacks Investment Research offers a free report on the 7 best stocks to consider.

Since 1978, Zacks Investment Research has provided investors with independent analysis and tools. Over more than 25 years, the Zacks Rank stock-rating system has delivered average annual gains of 24.08%, more than doubling the S&P 500 from January 1, 1988 through May 6, 2024.

For the latest stock recommendations from Zacks Investment Research, you can download the 7 Best Stocks for the Next 30 Days.