Sardar Biglari, operating through his affiliated vehicle Lion Fund II, L.P., has reduced his position in El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) by approximately $3.7 million. The divestment was executed through multiple transactions between June 26 and June 30, 2026. These sales were carried out at weighted average prices ranging from $16.58 to $16.91 per share. The timing of these transactions is notable given the stock's recent performance. Current trading data indicates the shares are priced at $16.96, which is merely 1% below their 52-week high of $17. Over the past year, the stock has appreciated by 54%. Despite this strong momentum, valuation analysis suggests the stock may currently be trading above its fair value.
The specific transactions executed by Lion Fund II, L.P. involved a total of 222,600 shares. On June 26, 2026, the fund disposed of 100,000 shares at a weighted average price of $16.75 per share. Individual transaction prices for this block ranged from $16.50 to $16.90. A second block of 100,000 shares was sold on June 29, 2026. This transaction occurred at a weighted average price of $16.58 per share, with individual prices ranging from $16.50 to $16.67. The final set of transactions took place on June 30, 2026, when the fund sold 22,600 shares at a weighted average price of $16.91 per share. Prices for these shares ranged from $16.87 to $17.00. Following these sales, Lion Fund II, L.P. retains a holding of 3,777,400 shares of El Pollo Loco Holdings common stock.
Lion Fund II, L.P. operates under the control of Biglari Capital Corp. Sardar Biglari serves as the sole owner, Chairman, and Chief Executive Officer of this entity. Due to these structural relationships, Biglari Capital Corp. and Mr. Biglari are considered beneficial owners of the shares held by Lion Fund II, L.P. Other entities linked to Biglari also maintain indirect stakes in the restaurant chain. Biglari Reinsurance Ltd. indirectly owns 369,247 shares, while First Guard Insurance Company holds 120,000 shares. These holdings are connected through a network of parent-subsidiary relationships where Biglari holds leadership roles and investment discretion. The recent filing was submitted jointly by Sardar Biglari, Biglari Holdings Inc., Biglari Capital Corp., Lion Fund II, L.P., Biglari Reinsurance Ltd., and Biglari Insurance Group Inc. Each reporting party has disclaimed beneficial ownership of the reported shares except to the extent of their pecuniary interest.
El Pollo Loco Holdings has demonstrated strong operational performance in the first quarter of fiscal 2026. The company reported earnings per share of $0.28, which surpassed the consensus forecast of $0.22. Revenue for the period reached $126.2 million, exceeding the anticipated $122.12 million. Systemwide same-store sales grew by 5.8%, outperforming the consensus expectation of 2.4%. In response to these results, the company's Board of Directors authorized a $40 million stock buyback program. This program represents approximately 9% of the company's current market capitalization.
Analyst coverage of El Pollo Loco reflects divergent views on its valuation and future trajectory. Benchmark raised its price target for the stock to $18 from $14 while maintaining a Buy rating. Freedom Capital initiated coverage with a Buy rating and set a price target of $22. D.A. Davidson reiterated a Neutral rating with a $15 price target following discussions with the company's CFO at a recent conference. These developments highlight the ongoing financial and strategic activities surrounding El Pollo Loco.