A fund linked to investor Sardar Biglari has sold a significant block of shares in El Pollo Loco Holdings, Inc. (NASDAQ:LOCO), according to a recent filing with the Securities and Exchange Commission. The Lion Fund II, L.P. disposed of 75,000 shares of common stock on July 13, 2026, for a total value of $1,255,499.
The shares were sold at prices ranging from $16.70 to $17.02 per share, with a weighted average sale price of $16.74. Following this transaction, The Lion Fund II, L.P. indirectly holds 3,560,454 shares of El Pollo Loco Holdings common stock.The timing of the sale is notable, as El Pollo Loco shares are trading near their 52-week high of $17.40, having delivered a 55% return over the past year. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value, placing it among overvalued stocks in the market. For investors seeking deeper insights, InvestingPro offers additional tips and a comprehensive Pro Research Report covering LOCO and 1,400+ other US equities.
Sardar Biglari, who is the sole owner, Chairman, and Chief Executive Officer of Biglari Capital Corp., serves as the general partner of The Lion Fund II, L.P. Due to these relationships, Mr. Biglari and Biglari Capital Corp. may be deemed beneficial owners of the shares held by The Lion Fund II, L.P.
Additional indirect holdings of El Pollo Loco Holdings common stock were also reported. Biglari Reinsurance Ltd. indirectly holds 369,247 shares, and First Guard Insurance Company indirectly holds 120,000 shares. Biglari Insurance Group Inc. is the direct parent company of Biglari Reinsurance Ltd., which in turn is the direct parent company of First Guard Insurance Company. Biglari Holdings Inc. is the direct parent company of Biglari Insurance Group Inc. Mr. Biglari is the Chairman and Chief Executive Officer of Biglari Holdings Inc. and has investment discretion over the securities owned by First Guard Insurance Company.
This Form 4 filing was submitted jointly by Mr. Biglari, Biglari Holdings Inc., Biglari Capital Corp., The Lion Fund II, L.P., Biglari Reinsurance Ltd., and Biglari Insurance Group Inc. Each reporting person disclaims beneficial ownership of the reported shares except to the extent of their pecuniary interest.
In other recent news, El Pollo Loco Holdings Inc. reported impressive financial results for the first quarter of fiscal 2026. The company achieved an earnings per share of $0.28, surpassing the forecasted $0.22, and reported revenues of $126.2 million, exceeding the anticipated $122.12 million. Systemwide same-store sales also grew by 5.8%, outpacing the consensus expectations of 2.4%. Benchmark responded by raising its price target for El Pollo Loco shares to $18, maintaining a Buy rating. Additionally, Freedom Capital initiated coverage on the stock with a Buy rating and set a price target of $22.
Meanwhile, D.A. Davidson reiterated a Neutral rating with a $15 price target after hosting the company’s CFO at their conference. In corporate actions, El Pollo Loco’s Board of Directors authorized a $40 million share repurchase program, representing approximately 9% of the company’s current market capitalization. These developments reflect El Pollo Loco’s strategic initiatives and the positive reception from analysts.
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