El Pollo Loco Holdings, Inc. LOCO recently opened its latest outlet in Avondale, AZ. The 2,995-square-foot restaurant that can accommodate 70 guests is the company’s first restaurant in Avondale and 25th in the greater Phoenix area.

We observe that El Pollo Loco stock has lost 15.4% year to date against the industry’s gain of 14.7%.

Continued Focus on ‘Vision Design’

The new outlet, features the brand’s new ‘Vision Design’ that offers an authentic, Mexican-inspired atmosphere, includes El Pollo Loco’s menu and brand identity, and has an open kitchen layout to display the preparation of its signature dish. The launch appears to be part of the company’s efforts to boost comps through expansion and sales building.

El Pollo Loco Holdings, Inc. Revenue (TTM)

El Pollo Loco Holdings, Inc. Revenue (TTM) | El Pollo Loco Holdings, Inc. Quote

Going Forward

The company expects to boost growth through continuous focus on providing excellent service, reasonable pricing and its advertising campaign, and boosting comps in the process. Banking on menu innovation, limited time offers and a strong brand positioning, the company witnessed traffic growth in the last reported quarter. The trend is expected to continue in the fourth quarter.

El Pollo Loco has more than 470 company-owned and franchised restaurants in Arizona, California, Texas, Nevada and Utah. Also, it is looking to expand its presence in key markets like Oklahoma, New Mexico, Louisiana as well as Arkansas.

However, while other restaurant operators like Yum! Brands YUM, McDonalds MCD and Papa John’s PZZA are pursuing aggressive global expansion policies, El Pollo Loco is losing out in terms of international presence.

El Pollo Loco has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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