The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for El Pollo Loco Holdings's Beneish M-Score or its related term are showing as below:
LOCO'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.16 Med: -2.58 Max: -2.09
Current: -2.62
During the past 13 years, the highest Beneish M-Score of El Pollo Loco Holdings was -2.09. The lowest was -3.16. And the median was -2.58.
El Pollo Loco Holdings Beneish M-Score Related Terms
El Pollo Loco Holdings Beneish M-Score Historical Data
* Premium members only.
The historical data trend for El Pollo Loco Holdings's Beneish M-Score 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 NATH, DIN, PTLO: Beneish M-Score Comparison
For the Restaurants subindustry, El Pollo Loco Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Beneish M-Score falls into.
El Pollo Loco Holdings Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of El Pollo Loco Holdings for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0493
+
0.528 * 0.9371
+
0.404 * 0.9781
+
0.892 * 1.0442
+
0.115 * 1.0126
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0875
+
4.679 * -0.044016
-
0.327 * 0.9016
=
-2.62
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(15.753 / (15.753 + 252.961))
/
(16.393 / (16.393 + 266.774))
=
0.058624
/
0.057892
=
1.0126
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(29.162 - -0.376
-
56.349)
/
609.121
=
-0.044016
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
El Pollo Loco Holdings has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.
El Pollo Loco Holdings (LOCO) has a Beneish M-Score of -2.62 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on El Pollo Loco Holdings and its competitors. According to the industry distribution chart, El Pollo Loco Holdings ranks #221 out of 357 companies in the Restaurants industry, placing it in the top 61.9%.
Is El Pollo Loco Holdings' Beneish M-Score too high?
El Pollo Loco Holdings' current Beneish M-Score is -2.62. Based on the distribution chart, El Pollo Loco Holdings ranks #221 out of 357 companies in the Restaurants industry, which is below the industry midpoint. Overall, El Pollo Loco Holdings has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does El Pollo Loco Holdings' Beneish M-Score compare to NATH and DIN?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #221 out of 357 companies for Beneish M-Score. This places El Pollo Loco Holdings in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Restaurants company?
A good Beneish M-Score depends on the Restaurants industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on El Pollo Loco Holdings and its competitors. El Pollo Loco Holdings's current Beneish M-Score is -2.62. 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 $16.22 — trading 39.2% above its estimated fair value. The current Beneish M-Score is -2.62. El Pollo Loco Holdings' overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current Beneish M-Score is -2.62 as of Jun. 24, 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 $16.22 is trading 39.2% above its estimated GF Value™ of $11.65.
GuruFocus considers El Pollo Loco Holdings to be Significantly Overvalued.
Key valuation signals for LOCO:
Beneish M-Score: -2.62
GF Value™: $11.65 vs. price of $16.22 (39.2% above fair value)
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.
72GF Score
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