El Pollo Loco Appoints Frank Garrido as Independent Director
El Pollo Loco (LOCO) announced the appointment of Frank Garrido as an independent member of its Board of Directors, effective March 1, 2026. Garrido is Executive Vice President - Chief Restaurant Officer of Domino's Pizza (DPZ).
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- Franchising Initiative: Mike's Red Tacos is set to launch a franchising initiative aimed at establishing hundreds of restaurants across the U.S., with backing from investors Bill Phelps and Andrew Feghali, which is expected to significantly enhance brand visibility and market share.
- Market Growth Potential: According to Datassential, traditional Mexican dish birria has reached a 3.7% penetration on U.S. menus, quadrupling in four years, indicating rapid growth potential that Mike's Red Tacos is poised to capitalize on.
- Rapid Expansion Strategy: The taco chain has secured franchising development deals with multi-unit operators for over 200 locations nationwide, with some restaurants expected to open by the end of the year, which will contribute to substantial revenue growth for the company.
- Clear Competitive Advantage: Despite facing stiff competition from national chains and local taco restaurants, Phelps believes that the chain's simple menu, delicious food, and aggressive marketing strategy will help Mike's Red Tacos stand out and become a market winner.
- New Menu Highlights: El Pollo Loco will debut four new Baja Double Tostadas on February 18, designed to enhance customer experience with fresh ingredients and bold flavors, likely attracting more patrons.
- Nutritional Value Boost: The new Baja Double Shrimp Tostada contains 38 grams of protein, while the Double Chicken Tostada offers 66 grams, catering to health-conscious consumers and reinforcing the brand's position in the healthy fast-food market.
- Market Innovation: By introducing shrimp options, El Pollo Loco demonstrates boldness in menu innovation, potentially appealing to seafood-loving customers despite being primarily a chicken restaurant.
- Cultural Brand Strengthening: El Pollo Loco's commitment to diverse menu offerings reflects its focus on inclusivity, enhancing emotional connections with customers and promoting brand loyalty.
- New Product Launch: El Pollo Loco introduces Double Pollo Salads featuring 52 grams of protein each, aimed at meeting consumer demand for healthy yet flavorful meals, thereby enhancing brand appeal and driving sales growth.
- Flavor Variety: The new salads come in three flavors—Mexican Caesar, Street Corn, and Bacon Ranch—combining premium ingredients and unique seasonings to attract diverse customer preferences and enhance market competitiveness.
- Market Expansion: Operating over 500 restaurants in the U.S. and with licensed locations in the Philippines, El Pollo Loco leverages this new product to further solidify its leadership in the fast-casual healthy dining sector.
- Brand Commitment: The company emphasizes high-quality, healthy dining options and has been recognized as a “Best Restaurant for Quick, Healthy Food” for two consecutive years, which not only boosts brand image but also strengthens customer loyalty.
Chipotle's Current Performance: Chipotle Mexican Grill is facing challenges with slowing same-store sales growth, margin pressure, and declining analyst estimates, leading to a Zacks Rank of #5 (Strong Sell). The company reported Q3 adjusted EPS of $0.29, slightly above expectations, but revenue fell short at $3.00 billion.
Market and Operational Challenges: The stock has dropped 35% this year, with macroeconomic pressures affecting younger consumers, who represent a significant portion of sales. Chipotle has lowered its full-year same-store sales guidance, indicating near-term transaction headwinds despite ongoing restaurant expansion.
Future Outlook and Initiatives: While Chipotle is investing in marketing, menu innovation, and operational efficiency initiatives, the benefits are expected to accrue over time, leaving margins under pressure in the short term. Analysts have reduced earnings estimates for the upcoming quarters, reflecting a negative trend for the company.
Investment Recommendations: Investors are advised to consider taking profits amid the stock's recent rally, with potential resistance at the 50-day moving average. For those looking at fast casual dining stocks, El Pollo Loco is highlighted as a stronger investment option, currently rated as a Zacks Rank #1 (Strong Buy).
- New Board Members: El Pollo Loco has appointed Robert D. Wright and Tana Davila as independent directors effective January 1, 2026, aiming to leverage their extensive restaurant industry experience to drive growth in existing and new markets across the country.
- Leadership Transition: With the retirements of Bill Floyd and Samuel Borgese, Douglas Babb has been elected as the new Chairperson of the Board, reflecting the company's focus on leadership renewal to support ongoing business development and innovation.
- Rich Industry Experience: Wright, as CEO of Potbelly, successfully expanded its market presence and enhanced its digital platform, while Davila drove brand recognition and sales growth at Dutch Bros Coffee, bringing valuable industry insights to El Pollo Loco.
- Strategic Commitment: CEO Liz Williams emphasized that the addition of new board members will strengthen the company's commitment to maximizing shareholder value, indicating that El Pollo Loco is preparing for the next phase of growth.
- New Board Appointments: El Pollo Loco has announced the appointment of Robert D. Wright and Tana Davila as independent directors effective January 1, 2026, aiming to leverage their extensive restaurant industry experience to drive growth in existing and new markets across the country.
- Rich Leadership Experience: Wright, as CEO of Potbelly Sandwich Works since 2020, successfully expanded the company's footprint and led a successful acquisition in 2025, while Davila, as CMO of Dutch Bros Coffee, has driven brand recognition and consistent sales growth, showcasing significant market impact.
- Board Changes: With the addition of Wright and Davila, current board members Bill Floyd and Samuel Borgese will retire on December 31, 2025, with Floyd also stepping down as Chairperson, and Douglas Babb set to take over, ensuring continued leadership within the board.
- Strategic Commitment: CEO Liz Williams emphasized that these changes reflect the company's ongoing commitment to maximizing shareholder value, indicating that El Pollo Loco is laying the groundwork for future growth, particularly in the competitive quick-service and fast-casual sectors.










