SCHEDULE: Biglari Group Amends SEC Filing for El Pollo Loco Stake

Sardar Biglari's investment group, Biglari Capital Corp., has updated its Schedule 13D filing concerning its beneficial ownership of El Pollo Loco Holdings, Inc. common stock.

Summary

• This filing is an amendment (Amendment No. 2) to a Schedule 13D, indicating a change in beneficial ownership of El Pollo Loco Holdings, Inc. (EPL) common stock.
• The reporting persons, including Sardar Biglari, Biglari Capital Corp., The Lion Fund II, L.P., First Guard Insurance Company, Biglari Reinsurance Ltd., Biglari Insurance Group Inc., and Biglari Holdings Inc., collectively beneficially own 4,124,701 shares of EPL common stock.
• This represents approximately 13.5% of the total outstanding shares, based on 30,455,298 shares outstanding as of May 1, 2026.
• The Lion Fund II, L.P. directly owns 3,635,454 shares (11.9%).
• First Guard Insurance Company directly owns 120,000 shares (0.4%).
• Biglari Reinsurance Ltd. directly owns 369,247 shares (1.2%).
• The aggregate purchase price for shares owned by The Lion Fund II was approximately $35,964,823, by First Guard was approximately $1,223,056, and by Biglari Reinsurance was approximately $4,861,578.
• These shares were purchased using working capital, which may include margin loans.
• The filing also details transactions in the past sixty days, primarily sales of common stock by The Lion Fund II, L.P. between June 26, 2026, and July 2, 2026, at weighted average prices ranging from $16.58 to $17.27 per share.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral to slightly negative due to the reported sales of shares by a key reporting entity, despite the overall significant ownership stake.

Positives

• The reporting persons collectively hold a significant stake of 13.5% in El Pollo Loco Holdings, Inc., indicating substantial investment and potential influence.
• The shares were acquired using working capital, suggesting a deliberate investment strategy rather than reliance on external financing for the initial acquisition.

Negatives

• The Lion Fund II, L.P. has engaged in several sales of El Pollo Loco stock within the past sixty days, reducing its holdings.
• The filing explicitly states that each reporting person disclaims beneficial ownership of shares they do not directly own, which is a standard legal disclaimer but can be interpreted as a cautious stance.

Risks

• The ongoing sales by The Lion Fund II, L.P. could signal a potential reduction in the group's long-term commitment or a strategic shift, which might be perceived negatively by the market.
• The nature of 'working capital' purchases may include margin loans, introducing potential leverage risk if market conditions deteriorate.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from the company itself. The information pertains to past transactions and current beneficial ownership.

Management Comments

• Each of the Reporting Persons specifically disclaims beneficial ownership of the Shares reported herein that he or it does not directly own.

Industry Context

StockSavvy.ai notes that Schedule 13D filings are crucial for tracking significant ownership changes and potential activist investor activity in publicly traded companies. This amendment by Sardar Biglari's group indicates continued interest and potential strategic involvement with El Pollo Loco Holdings, Inc., a company operating in the competitive fast-casual restaurant sector.

Stakeholder Impact

• Shareholders: The sales by The Lion Fund II, L.P. could create downward pressure on the stock price or signal a lack of confidence from a major holder, potentially impacting investor sentiment.
• Management and Board of Directors: The continued significant ownership by Sardar Biglari's group may lead to increased scrutiny or engagement regarding corporate strategy and governance.

Next Steps

• The reporting persons will continue to monitor the business and affairs of the Issuer.
• Future actions may include engaging with management or the board of directors, or potentially acquiring additional shares or disposing of existing shares, depending on market conditions and investment strategy.

Key Dates

Recommendation

The filing indicates a significant ownership stake but also recent sales by a key entity within the reporting group. Without further information on the strategic intent behind these sales or the overall investment thesis, a 'hold' recommendation is prudent, suggesting investors maintain their current positions while awaiting clearer signals.

Keywords

Schedule 13D, El Pollo Loco Holdings, Sardar Biglari, Biglari Capital Corp., Beneficial Ownership, SEC Filing, Common Stock, Investment, Securities Exchange Act