El Pollo Loco Holdings, Inc. (LOCO) vs Nathan's Famous, Inc. (NATH)

El Pollo Loco Holdings, Inc. and Nathan's Famous, Inc. are both Restaurants companies. El Pollo Loco Holdings, Inc. and Nathan's Famous, Inc. are of similar size ($432.5M and $406.2M). El Pollo Loco Holdings, Inc. trades at the lower P/E: 11.9× against 20.9×. Nathan's Famous, Inc. grew revenue faster over the last twelve months: 12.4% against 4.40%. Nathan's Famous, Inc. has the higher net margin (11.8% vs 6.96%) and the higher return on invested capital (119.2% vs 9.82%). Across the 21 metrics below, Nathan's Famous, Inc. leads on 11 and El Pollo Loco Holdings, Inc. on 10.

Valuation

Metric LOCO NATH Restaurants median
P/E 11.94 20.85 22.14
P/S 0.84 2.46 0.91
P/B 1.32 n/m 2.01
Price to free cash flow 10.21 21.79 19.41
EV/EBITDA 6.31 14.16 11.48
EV/Sales 0.88 2.59 1.20
Earnings yield 8.37% 4.80% 2.30%
Free cash flow yield 9.79% 4.59% 3.92%

Profitability

Metric LOCO NATH Restaurants median
Gross margin 32.23% 30.37% 38.77%
Operating margin 10.52% 17.73% 4.30%
Net margin 6.96% 11.78% 1.85%
Free cash flow margin 8.19% 11.28% 3.12%
Return on equity 11.79% (241.41%) 3.07%
Return on assets 5.74% 31.07% 1.50%
Return on invested capital 9.82% 119.24% 3.14%

Growth

Metric LOCO NATH Restaurants median
Revenue growth (TTM) 4.40% 12.44% 5.16%
EPS growth (last fiscal year) 4.65% (17.38%) —
Revenue growth, 5-year CAGR 2.84% 16.40% 10.57%
Net income growth, 5-year CAGR 1.59% 12.57% 0.00%

Health

Metric LOCO NATH Restaurants median
Debt to equity 0.10 (6.64) 0.10
Current ratio 0.41 2.45 0.81
Net debt to EBITDA 0.79 0.76 0.43

Dividend

Metric LOCO NATH Restaurants median
Dividend yield — 3.03% 2.32%
Payout ratio 0.00 0.39 0.00

Size

Metric LOCO NATH Restaurants median
Market cap 432.45m 406.16m 482.66m

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