Sardar Biglari Adds El Pollo Loco Holdings Inc to His Portfolio
On August 17, 2023, Sardar Biglari, through his firm Biglari Holdings Inc., made a significant addition to his portfolio by acquiring shares in El Pollo Loco Holdings Inc. This article will delve into the details of this transaction, provide an overview of both Biglari and El Pollo Loco Holdings Inc., and analyze the potential implications of this move for value investors.
Details of the Transaction
The transaction involved the addition of 120,000 shares of El Pollo Loco Holdings Inc. to Biglari's portfolio, bringing his total holdings in the company to 4,120,000 shares. The shares were acquired at a price of $10.17 each. This transaction had a 4.67% impact on Biglari's portfolio and increased his holdings in El Pollo Loco Holdings Inc. to 12.50%.
Profile of Sardar Biglari
Sardar Biglari is the head of Biglari Holdings Inc., a firm based in San Antonio, Texas. The firm currently holds stocks in eight companies, with a total equity of $25 million. Biglari's top holdings include Cracker Barrel Old Country Store Inc, Jack In The Box Inc, Coca-Cola Co, Ferrari NV, and Taiwan Semiconductor Manufacturing Co Ltd. The firm's investment philosophy is primarily focused on the Consumer Cyclical and Consumer Defensive sectors.
Overview of El Pollo Loco Holdings Inc
El Pollo Loco Holdings Inc is a US-based company that operates and franchises hundreds of fast-casual chicken restaurants. The company's business segments include company-operated restaurant revenue, franchise advertising fee revenue, and franchise revenue. As of August 18, 2023, the company has a market capitalization of $328.655 million and a stock price of $9.97. The company's GF Score is 80/100, indicating good outperformance potential.
Analysis of the Transaction
The addition of El Pollo Loco Holdings Inc to Biglari's portfolio is a significant move. The transaction increased Biglari's holdings in the company to 12.50%, making it a substantial part of his portfolio. The acquisition could be seen as a strategic move to diversify his portfolio and tap into the potential growth of the fast-casual restaurant industry.
Comparison with Other Gurus
The largest guru holder of El Pollo Loco Holdings Inc is Hotchkis & Wiley Capital Management LLC. However, with this recent acquisition, Biglari has significantly increased his stake in the company, making him one of the top guru holders of El Pollo Loco Holdings Inc.
Conclusion
In conclusion, Sardar Biglari's recent acquisition of shares in El Pollo Loco Holdings Inc is a significant move that could potentially yield substantial returns. The transaction not only diversifies his portfolio but also positions him as one of the top guru holders of the company. This move could be of interest to value investors looking for investment opportunities in the fast-casual restaurant industry.
This article first appeared on GuruFocus.
