The shares of El Pollo LoCo Holdings Inc (NASDAQ:LOCO) continues to trade higher after its outstanding initial public offering (IPO). The restaurant chain that sells Mexican style grilled chicken ended its first day of trading up by more than 30% from its offering price of $15 per share. Last Friday.
Today, the stock price of El Pollo LoCo Holdings Inc (NASDAQ:LOCO) reached as much as $32.82 per share, an increase of more than 100% from its IPO price earlier today. The stock is trading $31.12 per share, up by more than 29% at the time of this writing, around 1:42 in the afternoon in New York.
Why investors are bullish on El Pollo LoCo
The continued rise of the shares of El Pollo LoCo Holdings Inc (NASDAQ:LOCO) following its IPO show that investors are bullish on the stock. Market observers believe that investors are betting on the growing popularity of the restaurant chain, which seems following the foot step of Chipotle Mexican Grill , Inc. (NYSE:CMG).
El Pollo LoCo Holdings Inc (NASDAQ:LOCO) has more than 400 company –owned and franchized restaurants across Arizona, California, Nevada, Texas and Utah. The company offers a citrus-marinated fire-grilled chicken and a variety of Mexican-inspired entrees.
Steve Sather, the chief executive officer of the company emphasized. “We’re not planning to be the next Chipotle. We will be a great El Pollo Loco.” In Spanish, El Pollo Loco means “the crazy chicken.”
The products of El Pollo LoCo Holdings Inc (NASDAQ:LOCO) is cheaper compared with the offerings of Chipotle Mexican Grill, Inc (NYSE:CMG), but more expensive compared with McDonald’s Corporation (NYSE:MCD).
The California-based restaurant chain operator explained that it is offering a quality food combined with a fast service to customers. The company plans to open 16 locations this year.
Last year, El Pollo LoCo Holdings Inc (NASDAQ:LOCO) reported that its revenue increased 7.2% to $314.7 million. The company’s annual losses climbed to $16.9 million as it repaid its debts earlier. Forbes contributor Carol Tice opined that the inability of El Pollo Loco to become profitable and its debt are warning signs for investors.