Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
El Pollo Loco Holdings's 3-Year RORE % for the quarter that ended in Mar. 2026 was 6.44%.
The industry rank for El Pollo Loco Holdings's 3-Year RORE % or its related term are showing as below:
LOCO's 3-Year RORE % is ranked worse than 51.98% of 329
companies
in the Restaurants industry
Industry Median: 8.92
vs LOCO: 6.44
El Pollo Loco Holdings (NAS:LOCO) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
El Pollo Loco Holdings 3-Year RORE % Related Terms
El Pollo Loco Holdings 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's 3-Year RORE % 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 the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
El Pollo Loco Holdings (LOCO) has a 3-Year RORE % of 6.44 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on El Pollo Loco Holdings and its competitors. According to the industry distribution chart, El Pollo Loco Holdings ranks #171 out of 329 companies in the Restaurants industry, placing it in the top 52%.
Is El Pollo Loco Holdings' 3-Year RORE % too high?
El Pollo Loco Holdings' current 3-Year RORE % is 6.44. The Restaurants industry median 3-Year RORE % is 8.92. El Pollo Loco Holdings' value of 6.44 is 27.8% below this industry median. Based on the distribution chart, El Pollo Loco Holdings ranks #171 out of 329 companies in the Restaurants industry, which is below the industry midpoint. Overall, El Pollo Loco Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does El Pollo Loco Holdings' 3-Year RORE % compare to DIN and NATH?
According to the Restaurants industry distribution chart, El Pollo Loco Holdings ranks #171 out of 329 companies for 3-Year RORE %. This places El Pollo Loco Holdings in the lower half of its industry. The industry median 3-Year RORE % is 8.92. El Pollo Loco Holdings' value of 6.44 is 27.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Restaurants company?
The median 3-Year RORE % among Restaurants companies is 8.92, based on 329 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. El Pollo Loco Holdings's current 3-Year RORE % of 6.44 is 27.8% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on El Pollo Loco Holdings and its competitors. For the Restaurants industry, the median 3-Year RORE % is 8.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. El Pollo Loco Holdings's current 3-Year RORE % is 6.44. 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 $16.43 — trading 41% above its estimated fair value. The current 3-Year RORE % is 6.44 and 27.8% below the Restaurants industry median of 8.92. El Pollo Loco Holdings' overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For El Pollo Loco Holdings (LOCO), the current 3-Year RORE % is 6.44 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 $16.43 is trading 41% above its estimated GF Value™ of $11.65.
GuruFocus considers El Pollo Loco Holdings to be Significantly Overvalued.
Key valuation signals for LOCO:
3-Year RORE %: 6.44
GF Value™: $11.65 vs. price of $16.43 (41% above fair value)
Industry Position: 27.8% below the Restaurants median (#171 of 329)
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.
71GF Score
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