El Pollo Loco HoldingsLOCO +1.42%68 Interest Coverage is 16.86 as of Mar. 2026, which is 50% above its 10-year median of 11.22. 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 262 Restaurants companies, El Pollo Loco Holdings ranks better than 66.41% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. El Pollo Loco Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was $12.3 Mil. El Pollo Loco Holdings's Interest Expense for the
three
months ended in Mar. 2026 was $-0.7 Mil.
El Pollo Loco Holdings's interest coverage for the quarter that ended in Mar. 2026 was 16.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for El Pollo Loco Holdings's Interest Coverage or its related term are showing as below:
LOCO'
s Interest Coverage Range Over the Past 10 Years
Min: 7.04 Med: 11.22 Max: 24.26
Current: 11.35
LOCO's Interest Coverage is ranked better than 66.41% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs LOCO: 11.35
El Pollo Loco Holdings (NAS:LOCO) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
El Pollo Loco Holdings Interest Coverage Related Terms
El Pollo Loco Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for El Pollo Loco Holdings's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LOCO vs DIN, NATH, CNNE: Interest Coverage Comparison
For the Restaurants subindustry, El Pollo Loco Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Interest Coverage falls into.
El Pollo Loco Holdings Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
El Pollo Loco Holdings (LOCO) has a Interest Coverage of 16.86 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on El Pollo Loco Holdings and its competitors. This is 50% above median its historical median of 11.22. Over the past decade, El Pollo Loco Holdings' Interest Coverage has ranged from 7.04 to 24.26. According to the industry distribution chart, El Pollo Loco Holdings ranks #88 out of 262 companies in the Restaurants industry, placing it in the top 33.6%.
Is El Pollo Loco Holdings' Interest Coverage too high?
El Pollo Loco Holdings' current Interest Coverage of 16.86 is 50% above median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 7.04 to a high of 24.26. The Restaurants industry median Interest Coverage is 6.45. El Pollo Loco Holdings' value of 16.86 is 161.4% above this industry median. Based on the distribution chart, El Pollo Loco Holdings ranks #88 out of 262 companies in the Restaurants industry, which is above the industry midpoint. 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' Interest Coverage compare to DIN and NATH?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #88 out of 262 companies for Interest Coverage. This puts El Pollo Loco Holdings in the upper half of its industry. The industry median Interest Coverage is 6.45. El Pollo Loco Holdings' value of 16.86 is 161.4% above this benchmark. Historically, El Pollo Loco Holdings' own Interest Coverage has ranged from 7.04 to 24.26 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 6.45, El Pollo Loco Holdings has consistently been above 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. El Pollo Loco Holdings's current Interest Coverage of 16.86 is 161.4% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on El Pollo Loco Holdings and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Pollo Loco Holdings's current Interest Coverage is 16.86, which is 50% above median its own 10-year median of 11.22. 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 Interest Coverage is 16.86, which is 50% above median its 10-year median of 11.22 and 161.4% above the Restaurants industry median of 6.45. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current Interest Coverage is 16.86 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:
Interest Coverage: 16.86 (50% above median its 10-year median of 11.22)
GF Value™: $11.65 vs. price of $17.20 (47.6% above fair value)
Industry Position: 161.4% above the Restaurants median (#88 of 262)
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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