El Pollo Loco: Taking Bites Out Of Chipotle

El Pollo Loco has executed an asset-light turnaround, driving a ~30% stock gain and outperforming peers, with a strong Q4 and robust opening pipeline. LOCO's menu innovation, protein-heavy bowls, and competitive pricing are capturing market share from fast-casual rivals like Chipotle, supporting improved same-store sales and margins. Franchise expansion, cost control, and strategic use of failed locations are enhancing unit economics, with management guiding for continued sales and EBITDA growth through FY 2028.