Latest Ratios: P/E Ratio 13.1x · EV/EBITDA 9.9x · ROE 9.6%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $453M | $309M | $355M | $303M | $364M | $517M | $648M | $567M | $585M | $387M | $480M |
| Enterprise Value | $687M | $542M | $615M | $569M | $597M | $721M | $898M | $870M | $652M | $472M | $582M |
| P/E Ratio → | 13.07 | 11.62 | 13.73 | 11.92 | 17.47 | 17.74 | 26.62 | 22.60 | — | 45.00 | 26.17 |
| P/S Ratio | 0.90 | 0.63 | 0.75 | 0.65 | 0.78 | 1.14 | 1.52 | 1.28 | 1.34 | 0.96 | 1.26 |
| P/B Ratio | 1.51 | 1.06 | 1.36 | 1.21 | 1.30 | 1.66 | 2.33 | 2.31 | 2.21 | 1.41 | 1.81 |
| P/FCF | 57.76 | 12.13 | 12.81 | 15.66 | 19.55 | 14.75 | 19.14 | 27.39 | 33.17 | 22.20 | 40.38 |
| P/OCF | 9.43 | 6.42 | 7.58 | 7.45 | 9.45 | 9.93 | 15.98 | 15.69 | 12.88 | 7.21 | 9.74 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.11 | 1.30 | 1.21 | 1.27 | 1.59 | 2.11 | 1.97 | 1.50 | 1.17 | 1.53 |
| EV / EBITDA | 9.95 | 9.28 | 10.82 | 10.34 | 13.40 | 12.75 | 17.80 | 15.48 | 78.00 | 18.91 | 11.49 |
| EV / EBIT | 16.17 | 12.89 | 14.94 | 14.34 | 19.53 | 17.46 | 26.87 | 20.87 | — | 11.91 | 16.97 |
| EV / FCF | — | 21.30 | 22.21 | 29.41 | 32.02 | 20.55 | 26.52 | 42.03 | 36.98 | 27.06 | 48.98 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.6% | 28.6% | 21.9% | 19.9% | 17.8% | 21.8% | 22.0% | 21.9% | 22.1% | 24.0% | 24.7% |
| Operating Margin | 8.7% | 8.7% | 8.7% | 8.5% | 6.4% | 9.1% | 7.9% | 8.7% | -2.2% | 1.7% | 9.1% |
| Net Profit Margin | 5.4% | 5.4% | 5.4% | 5.5% | 4.4% | 6.4% | 5.7% | 5.6% | -2.1% | 2.1% | 4.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.6% | 9.6% | 10.0% | 9.6% | 7.0% | 9.9% | 9.4% | 9.7% | -3.3% | 3.2% | 7.2% |
| ROA | 4.4% | 4.4% | 4.3% | 4.3% | 3.4% | 4.8% | 4.0% | 4.6% | -2.0% | 1.9% | 3.9% |
| ROIC | 6.1% | 6.1% | 5.9% | 5.8% | 4.4% | 6.0% | 4.7% | 6.5% | -2.1% | 1.4% | 7.1% |
| ROCE | 8.1% | 8.1% | 7.9% | 7.6% | 5.6% | 7.7% | 6.2% | 8.3% | -2.5% | 1.7% | 8.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.82 | 0.82 | 1.01 | 1.09 | 0.90 | 0.75 | 0.95 | 1.27 | 0.28 | 0.34 | 0.39 |
| Debt / EBITDA | 4.10 | 4.10 | 4.62 | 4.97 | 5.68 | 4.13 | 5.22 | 5.54 | 8.87 | 3.74 | 2.06 |
| Net Debt / Equity | — | 0.80 | 1.00 | 1.06 | 0.83 | 0.65 | 0.90 | 1.23 | 0.25 | 0.31 | 0.39 |
| Net Debt / EBITDA | 3.99 | 3.99 | 4.58 | 4.83 | 5.22 | 3.60 | 4.96 | 5.39 | 8.04 | 3.40 | 2.02 |
| Debt / FCF | — | 9.17 | 9.41 | 13.74 | 12.47 | 5.80 | 7.38 | 14.64 | 3.81 | 4.86 | 8.60 |
| Interest Coverage | 9.41 | 9.41 | 6.98 | 8.25 | 18.22 | 22.63 | 10.15 | 11.31 | -2.48 | 12.08 | 10.87 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.08 | 0.08 | 0.26 | 0.35 | 0.55 | 0.66 | 0.48 | 0.33 | 0.27 | 0.44 | 0.79 |
| Quick Ratio | 0.08 | 0.08 | 0.24 | 0.32 | 0.51 | 0.63 | 0.45 | 0.31 | 0.24 | 0.39 | 0.75 |
| Cash Ratio | 0.08 | 0.08 | 0.03 | 0.10 | 0.30 | 0.40 | 0.20 | 0.11 | 0.08 | 0.18 | 0.05 |
| Asset Turnover | — | 0.81 | 0.80 | 0.79 | 0.79 | 0.74 | 0.70 | 0.71 | 0.97 | 0.91 | 0.81 |
| Inventory Turnover | — | — | 190.66 | 196.39 | 158.17 | 153.19 | 158.29 | 172.02 | 136.90 | 133.44 | 135.55 |
| Days Sales Outstanding | — | 8.35 | 7.69 | 8.02 | 8.43 | 10.77 | 10.70 | 7.33 | 8.04 | 6.55 | 6.64 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | 15.3% | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | 267.2% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.6% | 8.6% | 7.3% | 8.4% | 5.7% | 5.6% | 3.8% | 4.4% | — | 2.2% | 3.8% |
| FCF Yield | 1.7% | 8.2% | 7.8% | 6.4% | 5.1% | 6.8% | 5.2% | 3.7% | 3.0% | 4.5% | 2.5% |
| Buyback Yield | 0.4% | 0.6% | 5.8% | 19.5% | 0.0% | 0.0% | 0.0% | 8.5% | 0.2% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.4% | 0.6% | 5.8% | 19.5% | 15.3% | 0.0% | 0.0% | 8.5% | 0.2% | 0.0% | 0.0% |
| Shares Outstanding | — | $30M | $30M | $34M | $37M | $36M | $36M | $37M | $39M | $39M | $39M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying LOCO stock.
El Pollo Loco Holdings, Inc.'s current P/E ratio is 13.1x. The historical average is 20.8x. This places it at the 18th percentile of its historical range.
El Pollo Loco Holdings, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.5x.
El Pollo Loco Holdings, Inc.'s return on equity (ROE) is 9.6%. The historical average is 5.3%.
Based on historical data, El Pollo Loco Holdings, Inc. is trading at a P/E of 13.1x. This is at the 18th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
El Pollo Loco Holdings, Inc. has 28.6% gross margin and 8.7% operating margin.
El Pollo Loco Holdings, Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Unsustainable Margin Expansion
Metrics are mathematically derived from official filings.
Gross Margin Surge Masks Structural Weakness
Gross margin expanded dramatically to a record 32.8% in Q2 2026, up from a trough of 19.8% a year prior, yet operating margin remains structurally low at 14.4% due to limited operating leverage in the cost structure. According to recent SEC filings, this volatility suggests the recent earnings recovery is highly sensitive to food cost fluctuations rather than durable operational improvement.
The extraordinary swing in gross margin appears to be the primary driver of the recent profitability rebound, yet the operating margin's lack of proportional expansion indicates that SG&A costs remain a significant, non-scalable burden. Net margin has similarly lagged, reaching only 9.9% in Q2 2026, which suggests that profitability gains are not fully flowing to the bottom line. This pattern implies that the company's core earning power remains constrained by its fixed cost base and competitive pricing environment, making the recent margin expansion appear anomalous rather than sustainable.
Low ROIC Despite Margin Recovery
Despite the sharp gross margin expansion, Return on Invested Capital (ROIC) only improved to 2.7% in Q2 2026 from a low of 1.3% in Q1 2024, signaling that the company's capital base is not generating meaningful returns. Based on reported figures, this ROIC trend suggests that recent profitability gains are insufficient to overcome the drag of a sizable asset base and goodwill-heavy balance sheet.
ROIC remains substantially below the company's estimated weighted average cost of capital, indicating continued value destruction on a risk-adjusted basis. The modest improvement is driven almost entirely by margin expansion rather than efficiency gains in asset turnover, which has remained flat at ~0.21. This suggests that management's capital allocation has not yet translated into improved operational efficiency, and the business model struggles to generate attractive returns on its invested capital.
Deleveraging Trajectory Improves Interest Comfort
Leverage has improved markedly, with the Debt-to-Equity ratio falling from 1.11 in Q2 2024 to 0.69 in Q2 2026, while Interest Coverage surged to 26.46x from just 8.11x. According to recent SEC filings, this rapid deleveraging has significantly reduced refinancing risk and appears to be a deliberate strategic priority.
The improvement in interest coverage is particularly striking, moving from a tight 6.65x in Q3 2024 to a very comfortable level, indicating that debt service is no longer a primary financial risk. However, the D/EBITDA ratio, while improving, remains elevated at 11.74x, suggesting that the absolute debt load relative to current earnings is still significant. This trajectory implies management is successfully prioritizing balance sheet repair, which may be providing a floor to the valuation.
Structural Liquidity Deficit Persists
The current and quick ratios have remained critically low, with the quick ratio at just 0.38 in Q2 2026 and having been as low as 0.08 in Q4 2025, indicating a persistent reliance on near-term cash generation to meet obligations. As reported in financial statements, this structural liquidity deficit leaves minimal buffer for operational disruptions or a downturn in consumer demand.
The tight liquidity position appears to be a permanent feature of the business model, likely reflecting efficient working capital management with low receivables and inventory but also a chronically low level of current assets. The pattern of significant quarterly swings, from a quick ratio of 0.08 to 0.41, suggests that liquidity is managed in a just-in-time manner. While this can be operationally efficient, it increases vulnerability to any shock that could disrupt the cash conversion cycle.
The Gross Margin Illusion
The single ratio most likely to be misapplied is the current P/E of 17.0x, which appears attractive but is based on net income heavily inflated by a record, and likely unsustainable, gross margin expansion. Based on reported figures, a normalized gross margin closer to the historical average would render the current valuation significantly less compelling.
Investors focusing on the P/E ratio may be misled into thinking the company is a low-multiple earnings story, while the underlying earnings power is volatile and dependent on transient factors. The correct metric for valuation should be an EV/EBITDA multiple anchored to a normalized, multi-year average margin, or a P/FCF multiple that accounts for the company's working capital volatility. Using the trailing P/E in this context obscures the fundamental risk that profitability is cyclical, not structural, which could lead to a significant re-rating if margins revert.