Is El Pollo Loco Holdings, Inc. (LOCO) Halal?

NASDAQ Consumer Cyclical United States $414M
✗ NOT HALAL
Confidence: 90/100
El Pollo Loco Holdings, Inc. (LOCO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 79.7% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. El Pollo Loco Holdings, Inc. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 79.7%
/ 30%
0.8%
/ 30%
3.0%
/ 30%
0.07%
/ 5%
✗ NOT HALAL
DJIM 79.7%
/ 33%
0.8%
/ 33%
3.0%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
MSCI 44.4%
/ 33%
0.4%
/ 33%
1.7%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
S&P 79.7%
/ 33%
0.8%
/ 33%
3.0%
/ 33%
0.07%
/ 5%
✗ NOT HALAL
FTSE 44.4%
/ 33%
0.4%
/ 33%
1.7%
/ 50%
0.07%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
15.3
Forward: 12.5
EPS
$0.90
P/B Ratio
1.4
EV/EBITDA
10.5
EV: $648M
Revenue
$490M
Growth: 8.1%
Beta
0.9
Average volatility
Current Ratio
0.3

Profitability

Gross Margin 22.2%
Operating Margin 8.7%
Net Margin 5.4%
Return on Equity (ROE) 9.6%
Return on Assets (ROA) 4.8%

Cash Flow & Balance Sheet

Operating Cash Flow$48M
Free Cash Flow$25M
Total Debt$241M
Debt-to-Equity82.8
Current Ratio0.3
Total Assets$607M

Price & Trading

Last Close$14.12
50-Day MA$11.47
200-Day MA$10.72
Avg Volume275K
Beta0.9
52-Week Range
$8.29
$14.50

About El Pollo Loco Holdings, Inc. (LOCO)

CEO
Ms. Elizabeth Goodwin Williams
Employees
4,034
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NASDAQ
Market Cap
$414M
Currency
USD

El Pollo Loco Holdings, Inc., through its subsidiary, El Pollo Loco, Inc., develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name. The company operates and franchises restaurants located in California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. It also licenses its brand to restaurants in the Philippines. The company was formerly known as Chicken Acquisition Corp. and changed its name to El Pollo Loco Holdings, Inc. in April 2014. El Pollo Loco Holdings, Inc. was founded in 1975 and is headquartered in Costa Mesa, California.

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Frequently Asked Questions

Is El Pollo Loco Holdings, Inc. (LOCO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), El Pollo Loco Holdings, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is El Pollo Loco Holdings, Inc.'s debt ratio?

El Pollo Loco Holdings, Inc.'s debt ratio is 79.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 44.4%.

What are El Pollo Loco Holdings, Inc.'s key financial metrics?

El Pollo Loco Holdings, Inc. has a market capitalization of $414M, trailing P/E ratio of 15.3, and revenue of $490M. The company maintains a gross margin of 22.2% and a net margin of 5.4%. Return on equity stands at 9.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.