El Pollo Loco HoldingsLOCO +1.42%68 Gross Margin % is 23.33% as of Mar. 2026, which is 6% above its 10-year median of 21.93. GuruFocus rates LOCO with a GF Score™ of 68/100 and a GF Value™ of $11.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 356 Restaurants companies, El Pollo Loco Holdings ranks worse than 81.74% on this metric.
LOCO's Gross Margin % is ranked worse than 81.74% of 356
companies
in the Restaurants industry
Industry Median: 45.685
vs LOCO: 22.91
El Pollo Loco Holdings had a gross margin of 23.33% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for El Pollo Loco Holdings was 0.50% per year.
El Pollo Loco Holdings (NAS:LOCO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
El Pollo Loco Holdings had a gross margin of 23.33% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
El Pollo Loco Holdings Gross Margin % Related Terms
El Pollo Loco Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for El Pollo Loco Holdings's Gross Margin % 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.
LOCO vs DIN, NATH, CNNE: Gross Margin % Comparison
For the Restaurants subindustry, El Pollo Loco Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
El Pollo Loco Holdings (LOCO) has a Gross Margin % of 23.33% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on El Pollo Loco Holdings and its competitors. This is near median its historical median of 21.93. Over the past decade, El Pollo Loco Holdings' Gross Margin % has ranged from 17.81 to 24.69. According to the industry distribution chart, El Pollo Loco Holdings ranks #291 out of 356 companies in the Restaurants industry, placing it in the top 81.7%.
Is El Pollo Loco Holdings' Gross Margin % too high?
El Pollo Loco Holdings' current Gross Margin % of 23.33% is near median its 10-year median of 21.93. Over the past 10 years, this metric has ranged from a low of 17.81 to a high of 24.69. The Restaurants industry median Gross Margin % is 45.69. El Pollo Loco Holdings' value of 23.33% is 48.9% below this industry median. Based on the distribution chart, El Pollo Loco Holdings ranks #291 out of 356 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, El Pollo Loco Holdings has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does El Pollo Loco Holdings' Gross Margin % compare to DIN and NATH?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #291 out of 356 companies for Gross Margin %. This places El Pollo Loco Holdings in the lower half of its industry. The industry median Gross Margin % is 45.69. El Pollo Loco Holdings' value of 23.33% is 48.9% below this benchmark. Historically, El Pollo Loco Holdings' own Gross Margin % has ranged from 17.81 to 24.69 over the past decade. While the company's 10-year median is 21.93 vs. the industry median of 45.69, El Pollo Loco Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. El Pollo Loco Holdings's current Gross Margin % of 23.33% is 48.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on El Pollo Loco Holdings and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Pollo Loco Holdings's current Gross Margin % is 23.33%, which is near median its own 10-year median of 21.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is El Pollo Loco Holdings stock overvalued right now?
Based on GuruFocus' analysis, El Pollo Loco Holdings (LOCO) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.65, compared to a current price of $17.20 — trading 47.6% above its estimated fair value. The current Gross Margin % is 23.33%, which is near median its 10-year median of 21.93 and 48.9% below the Restaurants industry median of 45.69. El Pollo Loco Holdings' overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current Gross Margin % is 23.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is El Pollo Loco Holdings (LOCO) Overvalued in 2026?
Based on GuruFocus' analysis, El Pollo Loco Holdings stock appears to be overvalued.
The current stock price of $17.20 is trading 47.6% above its estimated GF Value™ of $11.65.
GuruFocus considers El Pollo Loco Holdings to be Significantly Overvalued.
Key valuation signals for LOCO:
Gross Margin %: 23.33% (near median its 10-year median of 21.93)
GF Value™: $11.65 vs. price of $17.20 (47.6% above fair value)
Industry Position: 48.9% below the Restaurants median (#291 of 356)
No single metric tells the full story. See the LOCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
El Pollo Loco Holdings Inc operates and franchises hundreds of fast-casual chicken restaurants in the United States. It specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant market segment. Its offerings include Mexican-inspired menu items, including burritos, tostadas, bowls, salads, and bone-in chicken meals in various portion sizes. It also offers citrus-marinated fire-grilled chicken, along with a range of salsas and dressings that allow customers to customize their meals. The company operates in one operating segment. The majority of the company's revenue is derived from company-operated restaurant revenue.
68GF Score
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