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LOCO (El Pollo Loco Holdings) Degree of Operating Leverage : -2.00 (As of Mar. 2025)


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What is El Pollo Loco Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. El Pollo Loco Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.00. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for El Pollo Loco Holdings's Degree of Operating Leverage or its related term are showing as below:

LOCO's Degree of Operating Leverage is ranked better than
77.97% of 345 companies
in the Restaurants industry
Industry Median: 1.28 vs LOCO: -2.00

El Pollo Loco Holdings Degree of Operating Leverage Historical Data

The historical data trend for El Pollo Loco Holdings's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

El Pollo Loco Holdings Degree of Operating Leverage Chart

El Pollo Loco Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.45 3.78 -7.83 -108.47 4.07

El Pollo Loco Holdings Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -21.32 -126.10 18.38 4.07 -2.00

Competitive Comparison of El Pollo Loco Holdings's Degree of Operating Leverage

For the Restaurants subindustry, El Pollo Loco Holdings's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


El Pollo Loco Holdings's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where El Pollo Loco Holdings's Degree of Operating Leverage falls into.


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El Pollo Loco Holdings Degree of Operating Leverage Calculation

El Pollo Loco Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 40.481 (Mar. 2025) / 41.495 (Mar. 2024) - 1 )/( 476.032 (Mar. 2025) / 470.291 (Mar. 2024) - 1 )
=-0.0244/0.0122
=-2.00***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


El Pollo Loco Holdings  (NAS:LOCO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


El Pollo Loco Holdings Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of El Pollo Loco Holdings's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


El Pollo Loco Holdings Business Description

Traded in Other Exchanges
Address
3535 Harbor Boulevard, Suite 100, Costa Mesa, CA, USA, 92626
El Pollo Loco Holdings Inc operates and franchises hundreds of fast-casual chicken restaurants in the United States. Restaurant locations are typically free-standing and include drive-thrus, and menus include many low-priced options. Poultry is the company's largest food cost, accounting for roughly 38% of total food and paper cost, and the company manages that commodity price risk by using multiple suppliers and entering supply contracts of varying lengths depending on market conditions.
Executives
Sardar Biglari, 10 percent owner C/O BIGLARI HOLDINGS INC., 19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259
Mark Buller director C/O NORCRAFT COMPANIES, INC., 3020 DENMARK AVENUE, SUITE 100, EAGAN MN 55121
Samuel N. Borgese director C/O EL POLLO LOCO HOLDINGS, INC., 3535 HARBOR BLVD., SUITE 100, COSTA MESA CA 92626
Biglari Holdings Inc. 10 percent owner 19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259
John M Roth director 299 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10171
Fs Capital Partners V, Llc 10 percent owner 11100 SANTA MONICA BOULEVARD, SUITE 1900, LOS ANGELES CA 90025
Biglari Capital Corp. 10 percent owner 19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259
Lion Fund Ii, L.p. 10 percent owner 19100 RIDGEWOOD PKWY, SUITE 1200, SAN ANTONIO TX 78259
Laurance Roberts officer: Chief Financial Officer C/O EL POLLO LOCO HOLDINGS, INC., 3535 HARBOR BLVD., SUITE 100, COSTA MESA CA 92626
Maria Hollandsworth officer: Chief Operating Officer 3535 HARBOR BLVD, STE 100, COSTA MESA CA 92626
Fs Affiliates V, L.p. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 1900, LOS ANGELES CA 90025
Fs Equity Partners V Lp 10 percent owner 11100 SANTA MONICA BLVD., LOS ANGELES CA 90025
John M. Roth director, 10 percent owner C/O EL POLLO LOCO HOLDINGS, INC., 3535 HARBOR BLVD., SUITE 100, COSTA MESA CA 92626
Ira Fils officer: Chief Financial Officer C/O EL POLLO LOCO HOLDINGS, INC., 3535 HARBOR BLVD., SUITE 100, COSTA MESA CA 92614
Miguel Lozano officer: CHIEF OPERATING OFFICER 3535 HARBOR BLVD., # 100, COSTA MESA CA 92626