El Pollo Loco Holdings, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>El Pollo Loco Holdings, Inc. has filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

El Pollo Loco Holdings, Inc. (LOCO) filed a Annual Report (10-K) with the SEC on March 8, 2024. El Pollo Loco Holdings, Inc. filed its 2023 Form 10-K on March 8, 2024, reporting on the fiscal year ended December 27, 2023. The filing covers financial data and business operations for the company. Key dates mentioned include fiscal year ends for 2020, 2021, 2022, and 2023. The company's principal executive offices are located at 3535 Harbor Boulevard, Suite 100, Costa Mesa, CA 92626. The filing references various financial instruments and plans, including stock repurchase agreements and equity incentive plans.

Why It Matters

For investors and stakeholders tracking El Pollo Loco Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of El Pollo Loco's financial health and strategic initiatives for the fiscal year 2023, crucial for investors assessing performance and future outlook. The detailed financial statements and risk factors within the report offer insights into the company's operational performance, market position, and potential challenges, guiding investment decisions.

Risk Assessment

Risk Level: low — El Pollo Loco Holdings, Inc. shows low risk based on this filing. The risk level is low as this is a standard annual filing (10-K) providing historical financial data and business overview, without immediate material events or significant negative disclosures.

Analyst Insight

Investors should review the detailed financial statements and management's discussion and analysis in the 10-K to understand El Pollo Loco's performance and strategic direction for 2023.

Key Numbers

• 2023-12-27 — Fiscal Year End (Conformed period of report)
• 2024-03-08 — Filing Date (As of date)
• 37008061 — Revenue (Revenue from contract with customer including assessed tax)
• 31353223 — Revenue (Revenue from contract with customer including assessed tax)
• 350000 — Restructuring Costs (Restructuring Costs and Asset Impairment Charges)

Key Players & Entities

• El Pollo Loco Holdings, Inc. (company) — Filer name
• LOCO (company) — Ticker symbol
• 2023 (date) — Fiscal year end
• March 8, 2024 (date) — Filing date
• Costa Mesa, CA (location) — Business address city and state

FAQ

Industry Context

El Pollo Loco Holdings, Inc. operates in the restaurant industry, specifically in the fast-casual segment, focusing on flame-grilled chicken.

Regulatory Implications

The filing is a standard 10-K annual report required by the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the consolidated financial statements for the fiscal year ended December 27, 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section for insights into performance drivers.
3. Examine the Risk Factors section for any new or evolving risks impacting the company.

Key Dates

• 2023-12-27: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-08: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the 2023 annual report (10-K), providing year-end financial and operational data compared to previous periods as detailed within the filing.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share LOCO The Nasdaq Stock Mar
• $20 — establishments nationwide will rise to $20 an hour on April 1, 2024, and a Fast Fo
• $2.2 million — l sales per restaurant of approximately $2.2 million and restaurant-level contribution margi

Filing Documents

• loco-20231227x10k.htm (10-K) — 3179KB
• loco-20231227xex4d1.htm (EX-4.1) — 56KB
• loco-20231227xex10d18.htm (EX-10.18) — 1386KB
• loco-20231227xex10d19.htm (EX-10.19) — 283KB
• loco-20231227xex10d37.htm (EX-10.37) — 61KB
• loco-20231227xex23d1.htm (EX-23.1) — 2KB
• loco-20231227xex31d1.htm (EX-31.1) — 8KB
• loco-20231227xex31d2.htm (EX-31.2) — 8KB
• loco-20231227xex32d1.htm (EX-32.1) — 6KB
• loco-20231227xex97d1.htm (EX-97.1) — 24KB
• loco-20231227x10k006.jpg (GRAPHIC) — 47KB
• loco-20231227xex10d18001.jpg (GRAPHIC) — 4KB
• loco-20231227xex10d18003.jpg (GRAPHIC) — 6KB
• loco-20231227xex10d18004.jpg (GRAPHIC) — 11KB
• loco-20231227xex10d19001.jpg (GRAPHIC) — 4KB
• 0001606366-24-000013.txt (&nbsp;) — 15682KB
• loco-20231227.xsd (EX-101.SCH) — 85KB
• loco-20231227_cal.xml (EX-101.CAL) — 105KB
• loco-20231227_def.xml (EX-101.DEF) — 390KB
• loco-20231227_lab.xml (EX-101.LAB) — 784KB
• loco-20231227_pre.xml (EX-101.PRE) — 622KB
• loco-20231227x10k_htm.xml (XML) — 2581KB

Business

Item 1. Business 2

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 26

Cybersecurity

Item 1C. Cybersecurity 26

Properties

Item 2. Properties 27

Legal Proceedings

Item 3. Legal Proceedings 28

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 28 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 28

[Reserved]

Item 6. [Reserved] 30

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 52

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 53

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 91

Controls and Procedures

Item 9A. Controls and Procedures 91

Other Information

Item 9B. Other Information 94

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 94 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 95

Executive Compensation

Item 11. Executive Compensation 95

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 95

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 95 PART IV

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 96

Form 10-K Summary

Item 16. Form 10-K Summary 100

Signatures

Signatures 101 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements because they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those that we expected. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this report in the context of the factors that could cause outcomes to differ materially from our expectations. These factors include, but are not limited to, those listed under "Item 1A.

BUSINESS

ITEM 1. BUSINESS Our Company El Pollo Loco is Spanish for "The Crazy Chicken." We opened our first location on Alvarado Street in Los Angeles, California, in 1980, and have grown our restaurant system to 495 restaurants, comprised of 172 company-operated and 323 franchised restaurants as of December 27, 2023. Our restaurants are located in California, Arizona, Nevada, Texas, Utah, Colorado and Louisiana. Our typical restaurant is a free-standing building with drive-thru service that ranges in size from 2,200 to 3,000 square feet with seating for approximately 50-70 people. El Pollo Loco is a differentiated and growing restaurant concept that specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant ("LSR") segment. We strive to offer food that integrates the culinary traditions of Mexico with the healthier lifestyle of Los Angeles. Our distinctive menu features our signature product, citrus-marinated fire-grilled chicken, as well as a variety of Mexican and LA-inspired entrees that we create from our chicken. We serve individual and family-sized chicken meals, a variety of Mexican and LA-inspired entrees and sides, and, throughout the year, on a limited-time basis, additional proteins like beef. Our entrees include favorites such as our Chicken Avocado Burrito, Pollo Fit entrees, chicken tostada salads, and Pollo Bowls. Our famous Creamy Cilantro dressings and salsas are prepared fresh daily, allowing our customers to create their favorite flavor profiles to enhance their culinary experience. Our distinctive menu with "better for you" and more affordable healthier alternatives appeals to consumers across a wide variety of socio-economic backgrounds and drives our balanced composition of sales throughout the day (our "day-part mix"), including at lunch and dinner. The Company operates in one operating segment. All significant revenues relate to retail sales of food and beverages through either company or franchised rest

View Full Filing

View this 10-K filing on SEC EDGAR