El Pollo Loco Holdings Inc (LOCO)vsYum! Brands Inc (YUM)
LOCO
El Pollo Loco Holdings Inc
$15.18
+0.80%
CONSUMER CYCLICAL · Cap: $456.83M
YUM
Yum! Brands Inc
$140.87
-2.10%
CONSUMER CYCLICAL · Cap: $40.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 1642% more annual revenue ($8.72B vs $500.79M). YUM leads profitability with a 25.4% profit margin vs 7.0%. LOCO appears more attractively valued with a PEG of 1.16. YUM earns a higher WallStSmart Score of 65/100 (C+).
LOCO
Buy65
out of 100
Grade: C+
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+20.3%
Fair Value
$13.43
Current Price
$15.18
$1.75 discount
Margin of Safety
-78.4%
Fair Value
$89.16
Current Price
$140.87
$51.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
Strong operational efficiency at 32.8%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Areas to Watch
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
LOCO profiles as a value stock while YUM is a mature play — different risk/reward profiles.
LOCO carries more volatility with a beta of 0.69 — expect wider price swings.
YUM is growing revenue faster at 12.2% — sustainability is the question.
YUM generates stronger free cash flow (407M), providing more financial flexibility.
Bottom Line
LOCO scores higher overall (65/100 vs 65/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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