NEW YORK (TheStreet) -- Since El Pollo Loco's (LOCO)initial public offering from last Friday, the company's stock added over $15 to its value and shares are currently at $35.65 in midday trading. The company's staggering rise resulted in many analysts comparing this quick-service restaurants chain to Chipotle Mexican Grill (CMG), which has also performed well in the stock market and has increased by 14.5% in the past month to $678.02 per share. But is El Pollo Loco anything like Chipotle? Let's take a closer at these two companies and compare several key factors:
Growth in Sales
El Pollo Loco's revenue reached $81.4 million in the first quarter of 2014. This represents a 5.7% gain compared to the same quarter last year. In comparison, during the second quarter, Chipotle's revenue grew by 28%, year over year.
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During the first quarter, El Pollo Loco's net income was $5.47 million, which represents a 6.7% profitability.
In comparison, Chipotle's net profitability was 10.5% in the past quarter. So Chipotle is outperforming El Pollo LoCo in terms of growth in sales and profit margins.
The debt burden El Pollo Loco has is very high as its debt-to-equity ratio is 5.3. Chipotle has no debt on its balance sheet. This means, El Pollo Loco's financial risk is much greater and the company allocates a chunk of its profits towards paying its interest payments.