El Pollo Loco Holdings, Inc. LOCO is scheduled to report fourth-quarter 2024 results on March 6, 2025. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 23.5%.

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Notably, the company’s earnings surpassed the consensus mark in each of the trailing four quarters, with an average of 26.1%.

How are Estimates Placed for LOCO?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 13 cents per share, indicating a decrease of 18.8% from 16 cents reported a year ago. In the past 60 days, estimates for the company’s earnings have been stable.

For quarterly revenues, the consensus mark is pegged at $113.2 million, indicating a slight increase of 0.8% from the prior-year reported figure.

Factors Likely to Shape LOCO’s Q4 Results

El Pollo Loco Holdings’ fourth-quarter top line is expected to have improved year over year, driven by menu innovation, competitive pricing and marketing efforts. A flexible and cost-effective unit expansion plan, along with a focus on remodeling initiatives, bodes well. However, lower transactions in December are likely to have impacted the company’s top line.

The Zacks Consensus Estimate for revenues from company-operated restaurants is pegged at $95 million, indicating an increase of 1.1% from the year-ago reported figure. The consensus mark for Franchise revenues is pegged at $11.2 million, implying an increase of 1.9% from the prior-year levels.

Meanwhile, higher general and administrative expenses, driven by increased labor-related costs and franchise expenses, are likely to have negatively impacted the bottom line in the to-be-reported quarter. The company's methodical cost-saving initiatives are expected to have provided some benefits while maintaining food quality and enhancing the guest experience.

What Our Model Says About LOCO

Our proven model does not predict an earnings beat for El Pollo Loco Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

Earnings ESP of LOCO: El Pollo Loco Holdings has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

LOCO’s Zacks Rank: The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Retail-Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat.

CAVA Group, Inc. CAVA has an Earnings ESP of +0.17% and a Zacks Rank of 3 at present.

CAVA is expected to register a 16.7% year-over-year increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 62.6%.

Dine Brands Global, Inc. DIN currently has an Earnings ESP of +1.92% and a Zacks Rank of 3.

DIN reported an earnings beat in the trailing three out of four quarters and missed once, the average surprise being 5.1%. Its earnings for the to-be-reported quarter are expected to decrease 3.6% year over year.

Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.69% and a Zacks Rank of 3.

YUM’s earnings for the to-be-reported quarter are expected to grow 9.6% year over year. Its earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, with a negative average surprise of 0.7%.

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El Pollo Loco Holdings, Inc. (LOCO) : Free Stock Analysis Report

CAVA Group, Inc. (CAVA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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