Why Restaurant Chain El Pollo Loco's Shares Are Soaring Today
Portfolio Pulse from Shivani Kumaresan
El Pollo Loco Holdings, Inc (NASDAQ:LOCO) shares surged after reporting first-quarter FY24 earnings, with sales growth of 1.4% to $116.15 million, surpassing analyst estimates. System-wide comparable restaurant sales increased by 5.1%. Operating income rose 24% to $9.7 million, and adjusted EBITDA increased 28.7% to $15.7 million. Adjusted EPS of $0.22 beat the consensus estimate of $0.14. The company plans to open new restaurants and anticipates a capital spend of $25 million to $28 million for the remainder of 2024. LOCO shares jumped 19.5% to $10.28.
May 03, 2024 | 2:15 pm
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POSITIVE IMPACT
El Pollo Loco's strong Q1 FY24 performance, with sales and earnings surpassing estimates, has led to a significant share price increase.
The positive earnings report, which exceeded analyst expectations in terms of sales, operating income, and EPS, directly contributed to the stock's sharp rise. The company's optimistic outlook and expansion plans further bolster investor confidence, suggesting a positive short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100