El Pollo Loco (Nasdaq: LOCO) said it “received an unsolicited, non-binding indication of interest from Biglari Capital Corp.” on Monday, according to an SEC filing.
Biglari Capital, headquartered in San Antonio, is led by Chairman and Chief Executive Sardar Biglari and owns the restaurant chain Steak ‘n Shake among other business ventures.
Biglari currently holds 4.1 million shares, 13.2% according to the restaurant chain’s 2024 proxy, and is looking to acquire the remaining amount of El Pollo Loco stock.
The Costa Mesa-based chain “is in the process of carefully evaluating the proposal” and entered a confidentiality agreement with Biglari on April 6.
El Pollo Loco said in the filing that there is no set timetable for any decision related to Biglari’s inquiry, first reported by trade publication Restaurant Business.
Shares rose as high as 9% during after-hours trading with a market cap of $276 million.
Update: El Pollo Loco stock was up 12% to $10.36 apiece during midday trading on Tuesday.
The Business Journal will have more details in its April 14th issue.
