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Stock impact report

El Pollo Loco: Foggy H2 Outlook With Weak Industry-Wide Traffic [Seeking Alpha]

El Pollo Loco Holdings, Inc. (LOCO) 
Last el pollo loco holdings, inc. earnings: 4/30 04:05 pm Check Earnings Report
US:NASDAQ Investor Relations: investor.elpolloloco.com/investor-relations
Company Research Source: Seeking Alpha
While the company called out better trends to start Q3, decelerating industry-wide traffic may have weakened post-July, giving little visibility into a Q3 beat. In this update, we'll look at industry-wide trends, LOCO's positioning geographically in states with steadily rising minimum wage & whether the stock offers a margin of safety. Roughly one year ago , I wrote on El Pollo Loco ( NASDAQ: LOCO ), noting that with the company committing to buybacks and a special dividend, the stock offered a decent reward/risk if it dropped below $10.00. After briefly dipping below $10.00 in early January, the stock enjoyed a ~30% rally but has since given up all of its gains and has found itself near new 52-week lows. However, while disappointing, much of this decline looks justified, with the company reporting anemic comp sales growth in Q2, even if adjusting for tough comparisons following its successful Beef Birria launch in the prior year quarter. In this update, we'll dig into recent res Show less Read more
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