El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) Appoints Elizabeth Williams as New CEO
**El Pollo Loco Holdings, Inc. (NASDAQ:LOCO)** has announced the appointment of Elizabeth “Liz” Williams as its new Chief Executive Officer, effective March 11, 2024. Williams, who brings a wealth of experience in the retail and restaurant industry, will also join the company’s Board of Directors.
Williams has an impressive track record of leading high-growth businesses, with previous roles including CEO of Outfox Hospitality, the parent company of popular café and convenience store chain Foxtrot, and Dom’s Kitchen and Market. She has also held leadership positions at Drybar and Hart House. Notably, she spent a decade with Yum! Brands and Taco Bell, where she served as Chief Financial Officer and President of Taco Bell International.
Commenting on the appointment, El Pollo Loco’s Chairman of the Board, William Floyd, expressed confidence in Williams’ ability to drive growth and improve the company’s financial performance. He also extended his gratitude to Maria Hollandsworth, who had been serving as interim CEO since November 2023. Hollandsworth will now take on the role of President of El Pollo Loco, in addition to her ongoing position as Chief Operating Officer.
In a statement, Williams expressed her excitement about joining El Pollo Loco and emphasized the potential for brand growth. She highlighted the company’s unique position in the restaurant industry, known for its fire-grilled chicken and fresh ingredients. El Pollo Loco currently operates over 490 company-owned and franchised restaurants across several U.S. states, and it aims to expand its presence through new company and franchisee development.
From a financial perspective, El Pollo Loco appears to be trading at a discount relative to its near-term earnings growth prospects. With a market capitalization of $307.78 million and a P/E ratio of 11.93, the company represents a potential value play for investors. It should be noted that the company’s P/E ratio over the last twelve months as of Q3 2023 was slightly higher at 12.56, indicating positive growth potential. Additionally, El Pollo Loco has shown a commitment to enhancing shareholder value through aggressive share buyback initiatives and a high shareholder yield.
The company has also maintained profitability over the last twelve months, aligning with analysts’ expectations for the current fiscal year. Its revenue growth during that period was 2.02%, with a gross profit margin of 19.66%, reflecting a stable financial foundation for the new CEO to build upon. However, it is worth noting that short-term obligations exceed liquid assets, suggesting potential liquidity constraints that may need to be addressed under the new leadership.
Analyst comment
Positive news. Elizabeth Williams’ appointment as CEO signals a focus on strengthening the company’s financial position and strategic planning. With her experience in high-growth businesses, Williams is expected to drive growth and improve financial performance. The market may respond positively, considering the company’s potential for brand growth and its current trading at a discount. However, potential liquidity constraints may need to be addressed under the new leadership.
