Shares of El Pollo Loco gained 60% following the restaurant chain's IPO.
El Pollo Loco, a Mexican food chain that cooks up grilled chicken, had a sizzling Wall Street debut on Friday with its shares gaining 60% in their first day of trading.
The company, which uses the ticker symbol LOCO, raised $100 million in its initial public offering on Thursday by selling 7 million shares priced at $15. At the end of trading on Friday, they had soared to $24.
With 400 restaurants, mostly in California, the chain markets itself as a healthy alternative to other fast food like Chick-Fil-A, Taco Bell and Yum! Brand’s YUM KFC. It’s main competitor, however, is powerhouse Chipotle CMG .
Whether the chain will catch flight, however, remains to be seen. Over the last three years, the company has lost $54 million and plans to use its IPO proceeds to payoff some of its $288 million in debt, according to CNN Money.
The company hopes to expand to 2,300 locations.