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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
El Pollo Loco Holdings's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-9.57.
The industry rank for El Pollo Loco Holdings's Net-Net Working Capital or its related term are showing as below:
LOCO's Price-to-Net-Net-Working-Capital is not ranked *
in the Restaurants industry.
Industry Median: 14.89 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
El Pollo Loco Holdings (NAS:LOCO) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
El Pollo Loco Holdings Net-Net Working Capital Related Terms
El Pollo Loco Holdings Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for El Pollo Loco Holdings's Net-Net Working Capital 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.
El Pollo Loco Holdings Net-Net Working Capital Chart
LOCO vs KRUS, DIN, NATH: Net-Net Working Capital Comparison
For the Restaurants subindustry, El Pollo Loco Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-9.57 mean?
El Pollo Loco Holdings (LOCO) has a Net-Net Working Capital of $-9.57 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on El Pollo Loco Holdings According to the industry distribution chart, El Pollo Loco Holdings ranks #999999 out of 47 companies in the Restaurants industry.
Is El Pollo Loco Holdings' Net-Net Working Capital too high?
El Pollo Loco Holdings' current Net-Net Working Capital is $-9.57. Based on the distribution chart, El Pollo Loco Holdings ranks #999999 out of 47 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, El Pollo Loco Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does El Pollo Loco Holdings' Net-Net Working Capital compare to KRUS and DIN?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #999999 out of 47 companies for Net-Net Working Capital. This places El Pollo Loco Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 14.89. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Restaurants company?
The median Net-Net Working Capital among Restaurants companies is 14.89, based on 47 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on El Pollo Loco Holdings For the Restaurants industry, the median Net-Net Working Capital is 14.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Pollo Loco Holdings's current Net-Net Working Capital is $-9.57. 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 $11.66, compared to a current price of $16.38 — trading 40.5% above its estimated fair value. The current Net-Net Working Capital is $-9.57. El Pollo Loco Holdings' overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current Net-Net Working Capital is $-9.57 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 $16.38 is trading 40.5% above its estimated GF Value™ of $11.66.
GuruFocus considers El Pollo Loco Holdings to be Significantly Overvalued.
Key valuation signals for LOCO:
Net-Net Working Capital: $-9.57
GF Value™: $11.66 vs. price of $16.38 (40.5% 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.
62GF Score
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