A fund connected to investor Sardar Biglari has executed a notable divestment of equity in El Pollo Loco Holdings, Inc. (NASDAQ: LOCO), as documented in a recent filing with the Securities and Exchange Commission. The Lion Fund II, L.P. reported the liquidation of a 75,000-share block of common stock on July 13, 2026. The aggregate value of this disposition reached $1,255,499.
The shares were offloaded across a price range of $16.70 to $17.02 per share. The weighted average sale price for this block was recorded at $16.74. Following the execution of this transaction, The Lion Fund II, L.P. maintains an indirect position of 3,560,454 shares of El Pollo Loco Holdings common stock. The timing of this sale draws attention given that El Pollo Loco shares are currently trading in close proximity to their 52-week high of $17.40. Over the preceding twelve-month period, the stock has generated a 55% return for investors.
Market analysis indicates that LOCO currently appears overvalued when measured against its Fair Value. This valuation metric places the stock among the group of equities in the broader market that are considered overvalued. Sardar Biglari serves as the sole owner, Chairman, and Chief Executive Officer of Biglari Capital Corp., which acts as the general partner for The Lion Fund II, L.P. Due to these structural relationships, Mr. Biglari and Biglari Capital Corp. are potentially classified as beneficial owners of the shares held by The Lion Fund II, L.P.
Additional indirect ownership stakes in El Pollo Loco Holdings common stock were also disclosed in the filing. Biglari Reinsurance Ltd. holds an indirect position of 369,247 shares, while First Guard Insurance Company holds an indirect position of 120,000 shares. The corporate structure reveals that Biglari Insurance Group Inc. is the direct parent company of Biglari Reinsurance Ltd. Biglari Reinsurance Ltd. is, in turn, the direct parent company of First Guard Insurance Company. Biglari Holdings Inc. serves as the direct parent company of Biglari Insurance Group Inc. Mr. Biglari holds the roles of Chairman and Chief Executive Officer at Biglari Holdings Inc. and retains investment discretion over the securities owned by First Guard Insurance Company.
The 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 individual and entity disclaims beneficial ownership of the reported shares, except to the extent of their direct pecuniary interest.
El Pollo Loco Holdings Inc. recently reported financial results for the first quarter of fiscal 2026 that exceeded market expectations. The company achieved an earnings per share of $0.28, surpassing the forecasted $0.22. Revenues reached $126.2 million, exceeding the anticipated $122.12 million. Systemwide same-store sales grew by 5.8%, outpacing the consensus expectations of 2.4%.
Analyst responses to these results varied. Benchmark raised its price target for El Pollo Loco shares to $18, maintaining a Buy rating. Freedom Capital initiated coverage on the stock with a Buy rating and established a price target of $22. Meanwhile, D.A. Davidson reiterated a Neutral rating with a $15 price target following a conference with the company’s CFO.
In corporate actions, El Pollo Loco’s Board of Directors authorized a $40 million share repurchase program. This program represents approximately 9% of the company’s current market capitalization. These developments highlight the company's strategic initiatives and the mixed but generally positive reception from the analyst community.