LOCO's 53% rally rests on stronger margins, digital growth and faster expansion, but traffic and cost pressures remain key risks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

El Pollo Loco will open its first New York City restaurant next year in Queens. The majority of the chicken chain's locations are in California, although it has been expanding.

Brand signs first lease in New York (Queens) Enters into three development agreements for 15 area restaurants over the next five years COSTA MESA, Calif., Sept. 29, 2026 (GLOBE NEWSWIRE) -- El Pollo Loco, the nation's leading fire-grilled chicken restaurant chain, today announced its planned entry into New York, including a signed lease for its first restaurant in the region, targeted to open in Queens in mid-2027.

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El Pollo Loco Holdings remains a high-quality value pick, outperforming the market with >40% YTD gains despite the recent pullback. LOCO raised FY26 comparable sales guidance to 3.5-4.5%, up from the prior 2-4%, signaling resilient demand in a tough consumer environment. Carryout sales and loyalty program strength are driving comps, with carryout up 12% y/y and Rewards members visiting 3x more frequently.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

The average of price targets set by Wall Street analysts indicates a potential upside of 33.8% in El Pollo Loco (LOCO). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

El Pollo Loco remains a Buy, supported by asset-light expansion, strong unit economics, and a shift beyond California. LOCO's franchise-led growth leverages low-cost conversions, driving higher ROI and expanding EBITDA margins toward a 20% long-term target. Management raised FY 2026 guidance: same-store sales to 3.5–4.5%, adjusted EBITDA to $68–70M, and reduced CapEx, supporting FCF and capital allocation flexibility.

COSTA MESA, Calif., Sept. 04, 2026 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (“El Pollo Loco”) (NASDAQ: LOCO) today announced that it will participate in the following conferences: