Stock Story -
Fast food chain El Pollo Loco (NASDAQ:LOCO) will be reporting results tomorrow afternoon. Here's what investors should know.
El Pollo Loco beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $116.2 million, up 1.4% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.
Is El Pollo Loco a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting El Pollo Loco's revenue to be flat year on year at $120.4 million, improving from the 2.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. El Pollo Loco has missed Wall Street's revenue estimates three times over the last two years.
Looking at El Pollo Loco's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. McDonald's (NYSE:MCD) posted flat year-on-year revenue, missing analysts' expectations by 2.1%, and Domino's reported revenues up 7.1%, in line with consensus estimates. McDonald's traded up 5.7% following the results while Domino's was down 14.6%.
Read the full analysis of McDonald's and Domino's results on StockStory.
There has been positive sentiment among investors in the traditional fast food segment, with share prices up 2.9% on average over the last month. El Pollo Loco is up 11.3% during the same time and is heading into earnings with an average analyst price target of $12.3 (compared to the current share price of $12.09).
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