El Pollo Loco vs KFC Which Is a Smarter Choice?

El Pollo Loco and KFC are two fast-food chains that have established themselves as major players in the chicken restaurant industry. Both companies have solid histories of success and continue to expand their presence in the market. However, their stocks have shown varying performances in recent years. This analysis will compare the financial performance and stock trends of El Pollo Loco and KFC, providing insights into the potential investment opportunities and risks associated with each company.

El Pollo Loco or KFC?

When comparing El Pollo Loco and KFC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between El Pollo Loco and KFC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. El Pollo Loco has a dividend yield of -%, while KFC has a dividend yield of 4.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. El Pollo Loco reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, KFC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with El Pollo Loco P/E ratio at 15.91 and KFC's P/E ratio at 9.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. El Pollo Loco P/B ratio is 1.50 while KFC's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, El Pollo Loco has seen a 5-year revenue growth of 0.21%, while KFC's is 0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with El Pollo Loco's ROE at 9.53% and KFC's ROE at 4.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.93 for El Pollo Loco and ¥1251.00 for KFC. Over the past year, El Pollo Loco's prices ranged from $8.17 to $14.25, with a yearly change of 74.42%. KFC's prices fluctuated between ¥1176.00 and ¥1606.00, with a yearly change of 36.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.