El Pollo Loco HoldingsLOCO +4.84%72 Net Margin % is 6.46% as of Mar. 2026, which is 19% above its 10-year median of 5.42. GuruFocus rates LOCO with a GF Score™ of 72/100 and a GF Value™ of $11.65 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 366 Restaurants companies, El Pollo Loco Holdings ranks better than 77.05% on this metric.
The historical rank and industry rank for El Pollo Loco Holdings's Net Margin % or its related term are showing as below:
LOCO'
s Net Margin % Range Over the Past 10 Years
Min: -2.06 Med: 5.42 Max: 6.41
Current: 5.87
LOCO's Net Margin % is ranked better than 77.05% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs LOCO: 5.87
El Pollo Loco Holdings (NAS:LOCO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
El Pollo Loco Holdings Net Margin % Related Terms
El Pollo Loco Holdings Net Margin % Historical Data
* 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.
For the Restaurants subindustry, El Pollo Loco Holdings's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Net 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.
El Pollo Loco Holdings (LOCO) has a Net Margin % of 6.46% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on El Pollo Loco Holdings and its competitors. This is 19% above median its historical median of 5.42. According to the industry distribution chart, El Pollo Loco Holdings ranks #84 out of 366 companies in the Restaurants industry, placing it in the top 23%.
Is El Pollo Loco Holdings' Net Margin % too high?
El Pollo Loco Holdings' current Net Margin % of 6.46% is 19% above median its 10-year median of 5.42. The Restaurants industry median Net Margin % is 2.06. El Pollo Loco Holdings' value of 6.46% is 213.6% above this industry median. Based on the distribution chart, El Pollo Loco Holdings ranks #84 out of 366 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. 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' Net Margin % compare to NATH and DIN?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #84 out of 366 companies for Net Margin %. This places El Pollo Loco Holdings in the top 23% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. El Pollo Loco Holdings' value of 6.46% is 213.6% above this benchmark. While the company's 10-year median is 5.42 vs. the industry median of 2.06, 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. El Pollo Loco Holdings's current Net Margin % of 6.46% is 213.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on El Pollo Loco Holdings and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Pollo Loco Holdings's current Net Margin % is 6.46%, which is 19% above median its own 10-year median of 5.42. 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 Net Margin % is 6.46%, which is 19% above median its 10-year median of 5.42 and 213.6% above the Restaurants industry median of 2.06. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current Net Margin % is 6.46% 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 $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:
Net Margin %: 6.46% (19% above median its 10-year median of 5.42)
GF Value™: $11.65 vs. price of $16.22 (39.2% above fair value)
Industry Position: 213.6% above the Restaurants median (#84 of 366)
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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