El Pollo Loco Board Approves $40M Share Buyback Equivalent to 9% Market Cap
LOCO•El Pollo Loco's board authorized a $40 million share repurchase, representing roughly 9% of current market capitalization. The program is effective immediately with no expiration date, backed by less than 1x leverage and funded through existing cash, operations cash flow, or borrowings to support unit and EBITDA growth.
1. Share Repurchase Authorization
El Pollo Loco’s board authorized a program to repurchase up to $40 million of common stock, representing approximately 9% of its current market capitalization.
2. Financial Position and Rationale
The board highlighted a leverage ratio below 1x and strong cash flow generation as drivers for the repurchase, which complements investment in unit growth and supports the company’s EBITDA expansion strategy.
3. Program Mechanics
Effective immediately with no set expiration date, the program allows repurchases via open market purchases, block trades, 10b5-1 plans or other compliant transactions, funded by existing cash, future operating cash flow or borrowings.
