El Pollo Loco (LOCO) Soars 5.14% on Partnership, Investor Activity

El Pollo Loco (LOCO) shares surged 0.97% today, marking the third consecutive day of gains and a total increase of 5.14% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 1.67%.

The strategy of buying LOCO shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -12.5%, indicating significant underperformance. This suggests that this strategy failed to capitalize on the recent high point, likely due to market dynamics or company-specific factors not favoring the stock in the short term.

El Pollo Loco has recently formed a strategic partnership with Dalton Knecht of the Los Angeles Lakers. This collaboration represents the company's first athlete endorsement, which is expected to boost brand recognition and consumer engagement. The partnership is seen as a significant move to enhance the company's market presence and attract new customers.

Additionally, activist investor Sardar Biglari has been actively involved with El Pollo Loco, having acquired more than 12% of the company’s outstanding shares. In response to Biglari’s growing stake, El Pollo Loco adopted a shareholder rights plan to prevent a hostile takeover. This move has sparked discussions among investors about the company's future direction and potential strategic changes, contributing to the volatility in the stock price.

In June 2025, CapitalSpring announced a $14.7 million investment in El Pollo Loco. This investment signals potential strategic developments or expansions for the company, which could positively impact its financial outlook and operational capabilities. The infusion of capital is expected to support El Pollo Loco's growth initiatives and enhance its competitive position in the market.