Zeldes Haeggquist & Eck, LLP Announces Investigation of El Pollo Loco
SAN DIEGO–(BUSINESS WIRE)–
Zeldes Haeggquist & Eck, LLP, a shareholder and consumer rights litigation firm, has commenced an investigation into El Pollo Loco Holdings, Inc. (“El Pollo Loco” or the “Company”) (LOCO) to determine whether El Pollo Loco and its Officers and Directors have violated the federal securities laws by issuing false or misleading statements between May 15, 2015 and August 13, 2015 (the “Class Period”).
El Pollo Loco, headquartered in Costa Mesa, California, develops, franchises, licenses and operates over 400 fast food restaurants in California, Arizona, Nevada, Texas and Utah, serving Mexican-style grilled chicken.
The investigation focuses on whether El Pollo Loco made false and misleading statements during the Class Period that the Company was experiencing “strong operating momentum through solid sales and earnings growth,” and was “continuing” to achieve “increasing” comparable store sales. Meanwhile, El Pollo Loco’s controlling shareholders and executives and directors sold more than six million shares of stock for more than $131.6 million in gross proceeds.
However, after the close of trading on August 13, 2015, El Pollo Loco issued a release announcing its second quarter 2015 results, and disclosed that, contrary to its claims of being on track to achieve 3 to 5% comparable store sales increases, in fact, system-wide comparable restaurant sales had grown only 1.3%, including a .5% decrease for Company-operated restaurants, and a 2.6% increase for franchised restaurants. As a result, the Company reported sales of just $89.5 million, much less than the $93 million the Company had led the market to expect based on their bullish class period statements.
After these revelations were disclosed to the market, shares of El Pollo Loco stock plunged more than 27% from their class period high of $25.37 on heavy sales, erasing more than $268 million in market capitalization.
What You Can Do
If you purchased shares of El Pollo Loco stock between May 15, 2015 and August 13, 2015, you may have legal claims against the Company and/or its Officers and Directors. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Amber L. Eck at 619-342-8000, or via contact form by clicking here.
About Zeldes Haeggquist & Eck, LLP
Zeldes Haeggquist & Eck, LLP is a full-service law firm which brings major class actions nationwide on behalf of defrauded investors and consumers and handles a variety of complex business litigation matters.