Earnings Working Against El Pollo Loco Holdings, Inc.’s (NASDAQ:LOCO) Share Price
El Pollo Loco Holdings, Inc.’s (NASDAQ:LOCO) price-to-earnings (or “P/E”) ratio of 11.8x might make it look like a buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 18x and even P/E’s above 33x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
El Pollo Loco Holdings’ earnings growth of late has been pretty similar to most other companies. One possibility is that the P/E is low because investors think this modest earnings performance may begin to slide. If not, then…
