El Pollo Loco revenue growth forecast at 2.3% for next 12 months

Sell-side analysts expect El Pollo Loco (LOCO) revenue to increase by 2.3% over the next 12 months, a projection that mirrors the company's 1.8% annualized growth rate recorded over the previous seven years. This modest forecast suggests that recent menu additions have not yet translated into significant top-line expansion.

The restaurant chain generated $500.8 million in revenue during the past 12 months, placing it in the smaller segment of the industry. Analysts note that this scale can present disadvantages relative to larger competitors, who often benefit from stronger brand awareness and economies of scale. While El Pollo Loco's same-store sales have remained relatively stable over the last two years, the average annual growth of 1.7% has lagged behind most other restaurant chains.

Investors have seen limited upside in the stock since April 2026, with shares returning just 1.6% while hovering around $14.24. This performance trails the S&P 500, which gained 15.2% during the same period. The current share price is $14.24 per share. Although this valuation is considered reasonable, the lack of accelerated growth limits the potential for significant valuation multiples to expand, a dynamic that typically drives stock prices higher when revenue growth increases.

The combination of stable but below-average same-store sales and a flat revenue outlook leads analysts to pass on the stock for now. The data indicates that organic growth within existing dining locations has not picked up speed, and the current trading levels do not present a compelling entry point compared to other available opportunities in the market.