El Pollo Loco Holdings, Inc. (LOCO)

[cattracker1]

Ask Matt ! About Pollo Loco........

Ask Matt: Is it crazy to buy El Pollo Loco?
Matt Krantz, USA TODAY 1:38 p.m. EDT March 14, 2016
AP NASDAQ WELCOMES EL POLLO LOCO, INC. PEX
(Photo: The NASDAQ OMX Group, Inc., Globe Newswire)

Q: Is it crazy to invest in El Pollo Loco?

A: El Pollo Loco (LOCO) sizzled from the start, as shares of the grilled chicken chain jumped on their first day of trading in 2014. The stock has been driving investors crazy since then.

El Pollo Loco, which means “The Crazy Chicken” in Spanish, has turned cold for investors. Shares have lost more than a third of their value over the past 12 months. The stock dropped another $1.24, or 8%, to $13.89 Friday after the company reported 4% lower quarterly revenue of $86.3 million. The disappointing and lower revenue overshadowed the fact the company’s adjusted earnings per share rose 7% and was better than expected. El Pollo Loco’s business took a hit last year when it attempted to drive prices higher and cut back on value menus. Since then, the $5 menu featuring combination meals has been brought back. Analysts are forecasting the company to get back on the growth track. Revenue is expected to rise 11% this year to $394 million and profit is expected to rise nearly 3% to 73 cents a share, says S&P Global Market Intelligence. Shares aren’t cheap, trading for 23 times earnings over the past 12 months. But analysts think the return to growth makes the stock a “buy.”

:)