El Pollo Loco (LOCO) Reports Q3: Everything You Need To Know Ahead Of Earnings
Fast food chain El Pollo Loco (NASDAQ:LOCO) will be reporting earnings tomorrow after market hours. Here's what to look for.
Last quarter El Pollo Loco reported revenues of $121.5 million, down 2.11% year on year, missing analyst expectations by 2.46%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Is El Pollo Loco buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting El Pollo Loco's revenue to grow 0.82% year on year to $120.9 million, slowing down from the 3.61% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at El Pollo Loco's peers in the traditional fast food segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. McDonald's delivered top-line growth of 14% year on year, beating analyst estimates by 2.16%, and Yum China reported revenues up 8.53% year on year, missing analyst estimates by 5.65%. McDonald's traded up 2.6% on the results, Yum China was down 11.1%.
Read our full analysis of McDonald's's results here and Yum China's results here.
Investors in the traditional fast food segment have had steady hands going into the earnings, with the stocks up on average 1.5% over the last month. El Pollo Loco is up 2.16% during the same time, and is heading into the earnings with analyst price target of $11.5, compared to share price of $8.97.
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The author has no position in any of the stocks mentioned.
