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El Pollo Loco Expands Further in California with New Outlet
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The leading fire-grilled chicken chain in the U.S. El Pollo Loco Holdings, Inc. (LOCO - Free Report) opened its latest outlet in San Rafael, CA, on Jan 16. The 2,654-square foot restaurant, located at 910 Anderson Drive, can accommodate 40 guests.
The outlet features the brand’s new ‘Vision Design’ and has an open kitchen layout to display the preparation of its signature dish. This marks El Pollo Loco’s debut in the city of San Rafael.
El Pollo Loco currently has more than 455 company-owned and franchised restaurants in Arizona, California, Nevada, Texas and Utah. Also, it is looking to expand its presence in key markets like Houston and Dallas. This is the company’s first restaurant to be opened in the new year with another 13 scheduled to open in the coming weeks.
However, El Pollo Loco loses out to its peers in terms of international presence. While other restaurateurs like Yum! Brands, Inc. (YUM - Free Report) , McDonalds Corporation (MCD - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) pursue aggressive global expansion policies, El Pollo Loco seems to be weak on this front.
Additionally, the company joined the S&P 600 Small Cap Index, one of the most widely followed small-cap benchmarks, after the close of trading on Sep 12. We believe that the decision will prove to be a key positive for the company.
Going forward, the company expects to boost traffic on the back of its focus on catering to health-conscious customers by offering customized meals without compromising on flavors. Menu innovation and limited period offers have been contributing to traffic. Given the various sales and digital initiatives undertaken, the third quarter of 2016 marked the 21st consecutive quarter of positive comps for the company and this trend is expected to continue.
Also, shares of the company have dipped 3.5% over the last year. This performance compares unfavorably with the Zacks categorized Retail-Restaurants industry’s performance which gained 0.8% in the same time frame.
Nevertheless, we are hopeful on the company’s growth prospects based on its rapid expansion initiatives.
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El Pollo Loco Expands Further in California with New Outlet
The leading fire-grilled chicken chain in the U.S. El Pollo Loco Holdings, Inc. (LOCO - Free Report) opened its latest outlet in San Rafael, CA, on Jan 16. The 2,654-square foot restaurant, located at 910 Anderson Drive, can accommodate 40 guests.
The outlet features the brand’s new ‘Vision Design’ and has an open kitchen layout to display the preparation of its signature dish. This marks El Pollo Loco’s debut in the city of San Rafael.
El Pollo Loco currently has more than 455 company-owned and franchised restaurants in Arizona, California, Nevada, Texas and Utah. Also, it is looking to expand its presence in key markets like Houston and Dallas. This is the company’s first restaurant to be opened in the new year with another 13 scheduled to open in the coming weeks.
However, El Pollo Loco loses out to its peers in terms of international presence. While other restaurateurs like Yum! Brands, Inc. (YUM - Free Report) , McDonalds Corporation (MCD - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) pursue aggressive global expansion policies, El Pollo Loco seems to be weak on this front.
Additionally, the company joined the S&P 600 Small Cap Index, one of the most widely followed small-cap benchmarks, after the close of trading on Sep 12. We believe that the decision will prove to be a key positive for the company.
Going forward, the company expects to boost traffic on the back of its focus on catering to health-conscious customers by offering customized meals without compromising on flavors. Menu innovation and limited period offers have been contributing to traffic. Given the various sales and digital initiatives undertaken, the third quarter of 2016 marked the 21st consecutive quarter of positive comps for the company and this trend is expected to continue.
Yet, a challenging sales environment and lower consumer spending in the U.S. restaurant space remain headwinds for this Zacks Rank #3 (Hold) company’s top line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, shares of the company have dipped 3.5% over the last year. This performance compares unfavorably with the Zacks categorized Retail-Restaurants industry’s performance which gained 0.8% in the same time frame.
Nevertheless, we are hopeful on the company’s growth prospects based on its rapid expansion initiatives.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>