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El Pollo Loco Expands in Concord, Focuses on Vision Design
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El Pollo Loco, Inc. (LOCO - Free Report) has been banking on expansion and menu innovation to fortify its brand presence among consumers. The company has been witnessing revenue growth by launching distinguished menu offerings and providing revamped ambiance in its restaurants.
Recently, the company announced the opening of a restaurant in Concord, CA. The restaurant marks El Pollo Loco’s second location in Concord, and is supposed to be owned and operated by franchise partners Manuel Perales, Joseph Rubin, and Jesse Villafana at Concord Pollo Inc.
This move is in line with the company’s continual efforts to foray into various markets. In the last year, El Pollo Loco launched a restaurant in Eastvale. Prior to that, it was expanding in Texas. Further, the company is expected to have opened eight company-owned and nine to 10 franchised restaurants in 2018.
A unique brand positioning and other sales-building strategies have led El Pollo Loco’s shares to gain 58.7% in the past year, outperforming the industry’s rally of 18.6%.
‘Vision Design’ to Aid Sales & Profits
El Pollo Loco is opening all of its restaurants under the ‘Vision Design’ initiative. Restaurants under this program offer authentic atmosphere inspired by Mexico that includes El Pollo Loco’s menu and brand identity. Those restaurants also have an open-kitchen layout to display the preparation of the signature dish.
The company believes that its vision model is going to position it better in the quick-service restaurant space. Per El Polo Loco, it is witnessing encouraging results from the implementation of this model in various company-owned and franchised restaurants. It also aims to reduce costs and drive sales through this initiative.
Bottom Line
We believe the addition of the latest restaurant will further strengthen El Pollo Loco’s hold in California. This will also contribute to the company’s revenue growth.
As it is, El Pollo Loco witnessed year-over-year sales growth of 7.5% in the first nine months of 2018. Moreover, the Zacks Consensus Estimate pegs revenues at $104.6 million for fourth-quarter 2018, suggesting 9.9% growth from the year-ago quarter.
Earnings for Starbucks, Brinker and Darden for 2019 are projected to increase by 12.4%, 10% and 18.3%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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El Pollo Loco Expands in Concord, Focuses on Vision Design
El Pollo Loco, Inc. (LOCO - Free Report) has been banking on expansion and menu innovation to fortify its brand presence among consumers. The company has been witnessing revenue growth by launching distinguished menu offerings and providing revamped ambiance in its restaurants.
Recently, the company announced the opening of a restaurant in Concord, CA. The restaurant marks El Pollo Loco’s second location in Concord, and is supposed to be owned and operated by franchise partners Manuel Perales, Joseph Rubin, and Jesse Villafana at Concord Pollo Inc.
This move is in line with the company’s continual efforts to foray into various markets. In the last year, El Pollo Loco launched a restaurant in Eastvale. Prior to that, it was expanding in Texas. Further, the company is expected to have opened eight company-owned and nine to 10 franchised restaurants in 2018.
A unique brand positioning and other sales-building strategies have led El Pollo Loco’s shares to gain 58.7% in the past year, outperforming the industry’s rally of 18.6%.
‘Vision Design’ to Aid Sales & Profits
El Pollo Loco is opening all of its restaurants under the ‘Vision Design’ initiative. Restaurants under this program offer authentic atmosphere inspired by Mexico that includes El Pollo Loco’s menu and brand identity. Those restaurants also have an open-kitchen layout to display the preparation of the signature dish.
The company believes that its vision model is going to position it better in the quick-service restaurant space. Per El Polo Loco, it is witnessing encouraging results from the implementation of this model in various company-owned and franchised restaurants. It also aims to reduce costs and drive sales through this initiative.
Bottom Line
We believe the addition of the latest restaurant will further strengthen El Pollo Loco’s hold in California. This will also contribute to the company’s revenue growth.
As it is, El Pollo Loco witnessed year-over-year sales growth of 7.5% in the first nine months of 2018. Moreover, the Zacks Consensus Estimate pegs revenues at $104.6 million for fourth-quarter 2018, suggesting 9.9% growth from the year-ago quarter.
Zacks Rank & Other Key Picks
El Pollo Loco currently carries a Zacks Rank #2 (Buy). Some other top-ranked restaurant stocks are Starbucks (SBUX - Free Report) , Brinker (EAT - Free Report) and Darden (DRI - Free Report) . While Starbucks currently flaunts a Zacks Rank #1 (Strong Buy), Brinker and Darden carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings for Starbucks, Brinker and Darden for 2019 are projected to increase by 12.4%, 10% and 18.3%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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