Company Quick10K Filing
El Pollo Loco
Price15.24 EPS1
Shares35 P/E21
MCap535 P/FCF15
Net Debt89 EBIT38
TEV624 TEV/EBIT16
TTM 2019-12-25, in MM, except price, ratios
10-Q 2020-06-24 Filed 2020-07-31
10-Q 2020-03-25 Filed 2020-05-01
10-K 2019-12-25 Filed 2020-03-06
10-Q 2019-09-25 Filed 2019-11-01
10-Q 2019-06-26 Filed 2019-08-02
10-Q 2019-03-27 Filed 2019-05-03
10-K 2018-12-26 Filed 2019-03-08
10-Q 2018-09-26 Filed 2018-11-02
10-Q 2018-06-27 Filed 2018-08-03
10-Q 2018-03-28 Filed 2018-05-07
10-K 2017-12-27 Filed 2018-03-09
10-Q 2017-09-27 Filed 2017-11-03
10-Q 2017-06-28 Filed 2017-08-07
10-Q 2017-03-29 Filed 2017-05-05
10-K 2016-12-28 Filed 2017-03-10
10-Q 2016-09-28 Filed 2016-11-04
10-Q 2016-06-29 Filed 2016-08-05
10-Q 2016-03-30 Filed 2016-05-06
10-K 2015-12-30 Filed 2016-03-11
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-07-01 Filed 2015-08-14
10-Q 2015-04-01 Filed 2015-05-15
10-K 2014-12-31 Filed 2015-03-17
S-1 2014-11-10 Public Filing
10-Q 2014-09-24 Filed 2014-11-07
10-Q 2014-06-25 Filed 2014-09-05
S-1 2014-06-24 Public Filing
8-K 2020-07-30 Earnings, Exhibits
8-K 2020-06-02
8-K 2020-04-30
8-K 2020-04-08
8-K 2020-03-18
8-K 2020-03-05
8-K 2019-10-31
8-K 2019-08-01
8-K 2019-06-04
8-K 2019-05-02
8-K 2019-03-29
8-K 2019-03-07
8-K 2019-01-22
8-K 2018-11-01
8-K 2018-08-31
8-K 2018-08-02
8-K 2018-06-28
8-K 2018-06-05
8-K 2018-05-03
8-K 2018-03-08
8-K 2018-02-15
8-K 2018-01-16
8-K 2018-01-03

LOCO 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults of Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 loco-20200624ex311c77584.htm
EX-31.2 loco-20200624ex312fafa2e.htm
EX-32.1 loco-20200624ex32101c69b.htm

El Pollo Loco Earnings 2020-06-24

Balance SheetIncome StatementCash Flow
0.70.60.40.30.10.02013201520182021
Assets, Equity
0.20.10.10.0-0.0-0.12013201520182021
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12013201520182021
Ops, Inv, Fin

P6MP1YP1YP1YP1YP1Y0000000001606366--12-302020Q23512658235854122P1D0P1D0P4YP20YP0YP0YP3Yfalse0001606366loco:StockRepurchasePlan2019Member2019-04-300001606366loco:StockRepurchasePlan2018Member2018-08-020001606366us-gaap:RetainedEarningsMember2020-06-240001606366us-gaap:AdditionalPaidInCapitalMember2020-06-240001606366us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-240001606366us-gaap:RetainedEarningsMember2020-03-250001606366us-gaap:AdditionalPaidInCapitalMember2020-03-250001606366us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-2500016063662020-03-250001606366us-gaap:RetainedEarningsMember2019-12-250001606366us-gaap:AdditionalPaidInCapitalMember2019-12-250001606366us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-250001606366us-gaap:RetainedEarningsMember2019-06-260001606366us-gaap:AdditionalPaidInCapitalMember2019-06-260001606366us-gaap:RetainedEarningsMember2019-03-270001606366us-gaap:AdditionalPaidInCapitalMember2019-03-2700016063662019-03-270001606366us-gaap:RetainedEarningsMember2018-12-260001606366us-gaap:AdditionalPaidInCapitalMember2018-12-260001606366us-gaap:CommonStockMember2020-06-240001606366us-gaap:CommonStockMember2020-03-250001606366us-gaap:CommonStockMember2019-12-250001606366us-gaap:CommonStockMember2019-06-260001606366us-gaap:CommonStockMember2019-03-270001606366us-gaap:CommonStockMember2018-12-260001606366loco:PremiumOptionsMember2020-06-240001606366loco:PropertyleasemodificationMember2020-03-262020-06-240001606366loco:PropertyleasemodificationMember2019-12-262020-06-240001606366loco:PropertyleasemodificationMember2019-03-282019-06-260001606366loco:PropertyleasemodificationMember2018-12-272019-06-260001606366loco:FranchiseContractMember2025-01-012020-06-240001606366loco:FranchiseContractMember2024-01-012020-06-240001606366loco:FranchiseContractMember2023-01-012020-06-240001606366loco:FranchiseContractMember2022-01-012020-06-240001606366loco:FranchiseContractMember2021-01-012020-06-240001606366loco:FranchiseContractMember2020-01-012020-06-240001606366loco:HardwareServicesMember2020-06-240001606366us-gaap:ServiceMemberus-gaap:NonCoreMember2020-03-262020-06-240001606366us-gaap:ServiceMemberus-gaap:CoreMember2020-03-262020-06-240001606366us-gaap:FranchiseMemberus-gaap:NonCoreMember2020-03-262020-06-240001606366us-gaap:FranchiseMemberus-gaap:CoreMember2020-03-262020-06-240001606366loco:FranchiseAdvertisingFeeMemberus-gaap:NonCoreMember2020-03-262020-06-240001606366loco:FranchiseAdvertisingFeeMemberus-gaap:CoreMember2020-03-262020-06-240001606366us-gaap:ServiceMember2020-03-262020-06-240001606366us-gaap:NonCoreMember2020-03-262020-06-240001606366us-gaap:FranchiseMember2020-03-262020-06-240001606366us-gaap:CoreMember2020-03-262020-06-240001606366loco:FranchiseAdvertisingFeeMember2020-03-262020-06-240001606366us-gaap:ServiceMemberus-gaap:NonCoreMember2019-12-262020-06-240001606366us-gaap:ServiceMemberus-gaap:CoreMember2019-12-262020-06-240001606366us-gaap:FranchiseMemberus-gaap:NonCoreMember2019-12-262020-06-240001606366us-gaap:FranchiseMemberus-gaap:CoreMember2019-12-262020-06-240001606366loco:FranchiseAdvertisingFeeMemberus-gaap:NonCoreMember2019-12-262020-06-240001606366loco:FranchiseAdvertisingFeeMemberus-gaap:CoreMember2019-12-262020-06-240001606366us-gaap:ServiceMember2019-12-262020-06-240001606366us-gaap:NonCoreMember2019-12-262020-06-240001606366us-gaap:FranchiseMember2019-12-262020-06-240001606366us-gaap:CoreMember2019-12-262020-06-240001606366loco:FranchiseAdvertisingFeeMember2019-12-262020-06-240001606366us-gaap:ServiceMemberus-gaap:NonCoreMember2019-03-282019-06-260001606366us-gaap:ServiceMemberus-gaap:CoreMember2019-03-282019-06-260001606366us-gaap:FranchiseMemberus-gaap:NonCoreMember2019-03-282019-06-260001606366us-gaap:FranchiseMemberus-gaap:CoreMember2019-03-282019-06-260001606366loco:FranchiseAdvertisingFeeMemberus-gaap:NonCoreMember2019-03-282019-06-260001606366loco:FranchiseAdvertisingFeeMemberus-gaap:CoreMember2019-03-282019-06-260001606366us-gaap:ServiceMember2019-03-282019-06-260001606366us-gaap:NonCoreMember2019-03-282019-06-260001606366us-gaap:FranchiseMember2019-03-282019-06-260001606366us-gaap:CoreMember2019-03-282019-06-260001606366loco:FranchiseAdvertisingFeeMember2019-03-282019-06-260001606366us-gaap:ServiceMemberus-gaap:NonCoreMember2018-12-272019-06-260001606366us-gaap:ServiceMemberus-gaap:CoreMember2018-12-272019-06-260001606366us-gaap:FranchiseMemberus-gaap:NonCoreMember2018-12-272019-06-260001606366us-gaap:FranchiseMemberus-gaap:CoreMember2018-12-272019-06-260001606366loco:FranchiseAdvertisingFeeMemberus-gaap:NonCoreMember2018-12-272019-06-260001606366loco:FranchiseAdvertisingFeeMemberus-gaap:CoreMember2018-12-272019-06-260001606366us-gaap:ServiceMember2018-12-272019-06-260001606366us-gaap:NonCoreMember2018-12-272019-06-260001606366us-gaap:FranchiseMember2018-12-272019-06-260001606366us-gaap:CoreMember2018-12-272019-06-260001606366loco:FranchiseAdvertisingFeeMember2018-12-272019-06-260001606366loco:ClosedstoreMember2020-03-262020-06-240001606366loco:ClosedstoreMember2019-12-262020-06-240001606366loco:ClosedstoreMember2019-03-282019-06-260001606366loco:ClosedstoreMember2018-12-272019-06-260001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2020-03-262020-06-240001606366loco:ChickenMember2020-06-240001606366us-gaap:PropertyPlantAndEquipmentOtherTypesMember2020-06-240001606366us-gaap:LandMember2020-06-240001606366us-gaap:ConstructionInProgressMember2020-06-240001606366us-gaap:BuildingAndBuildingImprovementsMember2020-06-240001606366us-gaap:PropertyPlantAndEquipmentOtherTypesMember2019-12-250001606366us-gaap:LandMember2019-12-250001606366us-gaap:ConstructionInProgressMember2019-12-250001606366us-gaap:BuildingAndBuildingImprovementsMember2019-12-250001606366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-06-260001606366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-06-260001606366us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-06-260001606366us-gaap:FairValueMeasurementsNonrecurringMember2019-06-260001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-03-282019-06-260001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2018-12-272019-06-260001606366loco:StockRepurchasePlan2018Member2019-03-282019-06-260001606366loco:StockRepurchasePlan2018Member2018-12-272019-06-260001606366us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-262020-06-240001606366us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-262020-06-2400016063662018-12-270001606366stpr:TX2020-06-240001606366stpr:CA2020-06-240001606366us-gaap:RetainedEarningsMember2020-03-262020-06-240001606366us-gaap:RetainedEarningsMember2019-12-262020-06-240001606366us-gaap:RetainedEarningsMember2019-03-282019-06-260001606366us-gaap:RetainedEarningsMember2018-12-272019-06-260001606366loco:TrimaranPolloPartnersLLCMembersrt:MinimumMemberus-gaap:NoncontrollingInterestMember2020-06-240001606366loco:ElliottOlveraetalv.ElPolloLocoInc.etalMember2019-12-262020-06-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMemberloco:TotalDamagesMember2019-12-262020-06-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMemberloco:LostOpportunityDamagesMember2019-12-262020-06-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMemberloco:ImpactDamagesMember2019-12-262020-06-240001606366loco:ElliottOlveraetalv.ElPolloLocoInc.etalMember2020-06-240001606366loco:DanielTurocyetal.andRonHustonetalv.ElPolloLocoHoldingsInc.etalMember2019-12-250001606366loco:ElliottOlveraetalv.ElPolloLocoInc.etalMember2018-12-260001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2019-12-262020-06-240001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2020-06-240001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2018-07-130001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2020-03-262020-06-240001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2020-03-262020-06-240001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-12-262020-06-240001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-12-262020-06-240001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-03-282019-06-260001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-03-282019-06-260001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2018-12-272019-06-260001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2018-12-272019-06-260001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:LetterOfCreditMember2018-07-130001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberloco:SwingLineLoansMember2018-07-130001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMemberus-gaap:LetterOfCreditMember2020-04-170001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:LetterOfCreditMember2020-06-240001606366srt:MinimumMember2020-06-240001606366srt:MaximumMember2020-06-240001606366us-gaap:RestructuringChargesMember2020-03-262020-06-240001606366us-gaap:OperatingExpenseMember2020-03-262020-06-240001606366us-gaap:GeneralAndAdministrativeExpenseMember2020-03-262020-06-240001606366loco:EquipmentLeaseMember2020-03-262020-06-240001606366loco:DepreciationandamortizationMember2020-03-262020-06-240001606366us-gaap:RestructuringChargesMember2019-12-262020-06-240001606366us-gaap:OperatingExpenseMember2019-12-262020-06-240001606366us-gaap:GeneralAndAdministrativeExpenseMember2019-12-262020-06-240001606366loco:DepreciationandamortizationMember2019-12-262020-06-240001606366us-gaap:RestructuringChargesMember2019-03-282019-06-260001606366us-gaap:OperatingExpenseMember2019-03-282019-06-260001606366us-gaap:InterestExpenseMember2019-03-282019-06-260001606366us-gaap:GeneralAndAdministrativeExpenseMember2019-03-282019-06-260001606366loco:EquipmentLeaseMember2019-03-282019-06-260001606366loco:DepreciationandamortizationMember2019-03-282019-06-260001606366us-gaap:RestructuringChargesMember2018-12-272019-06-260001606366us-gaap:OperatingExpenseMember2018-12-272019-06-260001606366us-gaap:InterestExpenseMember2018-12-272019-06-260001606366us-gaap:GeneralAndAdministrativeExpenseMember2018-12-272019-06-260001606366loco:EquipmentLeaseMember2018-12-272019-06-260001606366loco:DepreciationandamortizationMember2018-12-272019-06-260001606366us-gaap:InterestRateSwapMember2020-03-262020-06-240001606366loco:HedgedDebtInstrumentMember2020-03-262020-06-240001606366us-gaap:InterestRateSwapMember2019-12-262020-06-240001606366loco:HedgedDebtInstrumentMember2019-12-262020-06-240001606366us-gaap:InterestRateSwapMember2018-12-272019-06-260001606366loco:HedgedDebtInstrumentMember2018-12-272019-06-260001606366stpr:CA2020-03-262020-06-240001606366stpr:CA2019-03-282019-06-260001606366us-gaap:EntityOperatedUnitsMember2019-03-282019-06-260001606366us-gaap:EntityOperatedUnitsMember2018-12-272019-06-260001606366loco:EquipmentLeaseMember2019-06-260001606366loco:PropertyLeaseMember2020-06-240001606366loco:EquipmentLeaseMember2020-06-240001606366loco:PropertyLeaseMember2019-06-260001606366loco:PropertyLeaseMember2020-03-262020-06-240001606366loco:PropertyLeaseMember2019-03-282019-06-260001606366loco:PropertyLeaseMember2018-12-272019-06-260001606366loco:TrimaranPolloPartnersLLCMember2020-06-240001606366us-gaap:RestrictedStockMember2020-06-240001606366us-gaap:PerformanceSharesMember2020-06-240001606366us-gaap:RestrictedStockUnitsRSUMember2019-12-262020-06-240001606366us-gaap:RestrictedStockMember2019-12-262020-06-240001606366us-gaap:PerformanceSharesMember2019-12-262020-06-240001606366us-gaap:EmployeeStockOptionMember2019-12-262020-06-240001606366us-gaap:RestrictedStockUnitsRSUMember2020-06-240001606366us-gaap:EmployeeStockOptionMember2020-06-240001606366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-250001606366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-250001606366us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-250001606366us-gaap:FairValueMeasurementsRecurringMember2019-12-250001606366us-gaap:InterestRateSwapMember2020-06-240001606366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-240001606366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-240001606366us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-240001606366us-gaap:FairValueMeasurementsRecurringMember2020-06-240001606366us-gaap:InterestRateSwapMember2019-12-250001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2019-12-262020-06-240001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-12-262020-06-240001606366srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:BaseRateMember2019-12-262020-06-240001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-12-262020-06-240001606366srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:BaseRateMember2019-12-262020-06-240001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-12-262020-06-240001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMemberus-gaap:FederalFundsEffectiveSwapRateMember2019-12-262020-06-240001606366loco:PurchasedMemberus-gaap:SupplierConcentrationRiskMemberloco:LargestSupplierOneMember2020-03-262020-06-240001606366loco:OtherthanLosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2020-03-262020-06-240001606366loco:LosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2020-03-262020-06-240001606366us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2020-03-262020-06-240001606366us-gaap:AccountsPayableMemberus-gaap:SupplierConcentrationRiskMemberloco:SupplierOneMember2019-12-262020-06-240001606366loco:PurchasedMemberus-gaap:SupplierConcentrationRiskMemberloco:LargestSupplierOneMember2019-12-262020-06-240001606366loco:OtherthanLosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-12-262020-06-240001606366loco:LosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-12-262020-06-240001606366us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-12-262020-06-240001606366loco:PurchasedMemberus-gaap:SupplierConcentrationRiskMemberloco:LargestSupplierOneMember2019-03-282019-06-260001606366loco:OtherthanLosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-03-282019-06-260001606366loco:LosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-03-282019-06-260001606366us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2019-03-282019-06-260001606366us-gaap:AccountsPayableMemberus-gaap:SupplierConcentrationRiskMemberloco:SupplierOneMember2018-12-272019-12-250001606366loco:PurchasedMemberus-gaap:SupplierConcentrationRiskMemberloco:LargestSupplierOneMember2018-12-272019-06-260001606366loco:OtherthanLosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2018-12-272019-06-260001606366loco:LosAngelesMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2018-12-272019-06-260001606366us-gaap:RevenueFromContractWithCustomerMemberus-gaap:GeographicConcentrationRiskMember2018-12-272019-06-2600016063662019-06-2600016063662018-12-260001606366us-gaap:AdditionalPaidInCapitalMember2020-03-262020-06-240001606366us-gaap:AdditionalPaidInCapitalMember2019-12-262020-06-240001606366us-gaap:CommonStockMember2019-03-282019-06-260001606366us-gaap:AdditionalPaidInCapitalMember2019-03-282019-06-260001606366us-gaap:CommonStockMember2018-12-272019-06-260001606366us-gaap:AdditionalPaidInCapitalMember2018-12-272019-06-260001606366us-gaap:CommonStockMember2020-03-262020-06-240001606366us-gaap:CommonStockMember2019-12-262020-06-240001606366us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-240001606366us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-240001606366us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-240001606366us-gaap:FairValueMeasurementsNonrecurringMember2020-06-240001606366loco:PropertyLeaseMember2019-12-262020-06-240001606366loco:EquipmentLeaseMember2019-12-262020-06-240001606366srt:MinimumMemberus-gaap:EntityOperatedUnitsMemberus-gaap:SubsequentEventMember2020-06-252020-06-250001606366srt:MaximumMemberus-gaap:EntityOperatedUnitsMemberus-gaap:SubsequentEventMember2020-06-252020-06-250001606366srt:MinimumMemberus-gaap:EntityOperatedUnitsMember2019-12-262020-06-240001606366srt:MaximumMemberus-gaap:EntityOperatedUnitsMember2019-12-262020-06-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2020-01-272020-01-2700016063662014-07-302014-07-300001606366srt:MinimumMemberloco:TrimaranPolloPartnersLLCMember2019-12-262020-06-240001606366us-gaap:SupplierConcentrationRiskMember2019-12-262020-06-240001606366loco:SanFranciscoMemberus-gaap:EntityOperatedUnitsMember2019-06-260001606366loco:PhoenixMemberus-gaap:EntityOperatedUnitsMember2019-06-260001606366stpr:TX2019-12-262020-06-240001606366stpr:CA2019-12-262020-06-240001606366stpr:CA2018-12-272019-06-260001606366us-gaap:FranchisedUnitsMemberus-gaap:SubsequentEventMember2020-06-250001606366us-gaap:EntityOperatedUnitsMemberus-gaap:SubsequentEventMember2020-06-250001606366us-gaap:FranchisedUnitsMember2020-06-240001606366us-gaap:EntityOperatedUnitsMember2020-06-240001606366stpr:UT2019-12-262020-06-240001606366loco:HoustonMember2019-12-262020-06-240001606366stpr:TX2019-06-260001606366stpr:CA2019-06-260001606366loco:ElliottOlveraetalv.ElPolloLocoInc.etalMember2019-01-242019-01-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2018-08-012018-08-010001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2018-05-012018-05-010001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2017-12-112017-12-110001606366loco:LeaseNotYetCommencedMember2019-12-262020-06-240001606366loco:DanielTurocyetal.andRonHustonetalv.ElPolloLocoHoldingsInc.etalMember2020-06-240001606366srt:OfficerMember2019-12-262020-06-240001606366loco:JaniceP.HandlersBrymanandMichaelD.Brymanv.ElPolloLocoIncMember2017-04-242017-04-240001606366us-gaap:LetterOfCreditMemberus-gaap:SubsequentEventMember2020-06-250001606366srt:MinimumMember2018-12-272019-12-250001606366srt:MaximumMember2018-12-272019-12-250001606366us-gaap:PropertyLeaseGuaranteeMember2019-12-262020-06-240001606366us-gaap:PropertyLeaseGuaranteeMember2020-06-240001606366us-gaap:FranchiseRightsMember2019-12-262020-06-240001606366us-gaap:RevolvingCreditFacilityMemberloco:CreditAgreementTwoThousandEighteenMember2018-07-132018-07-130001606366srt:MinimumMember2019-12-262020-06-240001606366srt:MaximumMember2019-12-262020-06-2400016063662020-03-262020-06-2400016063662019-03-282019-06-2600016063662018-12-272019-06-260001606366loco:DanielTurocyetal.andRonHustonetalv.ElPolloLocoHoldingsInc.etalMember2019-12-262020-06-2400016063662020-06-2400016063662019-12-2500016063662020-07-2400016063662019-12-262020-06-24loco:itemiso4217:USDxbrli:sharesloco:segmentxbrli:sharesiso4217:USDxbrli:pureloco:agreementloco:leaseloco:lawsuitloco:companyloco:classloco:restaurant

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 24, 2020

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to

Commission File Number: 001-36556

EL POLLO LOCO HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

20-3563182

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

3535 Harbor Blvd., Suite 100, Costa Mesa, California

92626

(Address of principal executive offices)

(Zip Code)

(714) 599-5000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

LOCO

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No

As of July 24, 2020, there were 35,922,099 shares of the issuer’s common stock outstanding.

Table of Contents

Table of Contents

    

Page

3

3

3

4

5

6

8

9

31

49

50

51

51

51

51

51

51

51

52

53

2

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands, except share data)

    

June 24,

    

December 25,

    

2020

    

2019

Assets

  

Current assets:

  

  

Cash and cash equivalents

$

60,342

$

8,070

Accounts and other receivables, net

 

16,115

 

8,505

Inventories

 

1,954

 

2,009

Prepaid expenses and other current assets

 

2,696

 

5,718

Income tax receivable

 

 

376

Total current assets

 

81,107

 

24,678

Property and equipment owned, net

 

84,262

 

91,778

Property held under operating leases, net ("ROU asset")

 

184,308

 

192,395

Goodwill

 

248,674

 

248,674

Trademarks

 

61,888

 

61,888

Deferred tax assets

 

4,185

 

3,709

Other assets

 

1,168

 

1,630

Total assets

$

665,592

$

624,752

Liabilities and Stockholders’ Equity

 

  

 

  

Current liabilities:

 

  

 

  

Current portion of obligations under finance leases

$

37

$

34

Current portion of obligations under operating leases

 

17,979

 

16,406

Accounts payable

 

9,338

 

5,627

Accrued salaries and vacation

 

6,277

 

8,618

Accrued insurance

 

10,138

 

9,440

Accrued income taxes payable

 

1,693

 

Accrued interest

 

217

 

302

Current portion of income tax receivable agreement payable

 

4,987

 

4,935

Other accrued expenses and current liabilities

 

16,376

 

28,597

Total current liabilities

 

67,042

 

73,959

Revolver loan

 

138,800

 

97,000

Obligations under finance leases, net of current portion

 

63

 

83

Obligations under operating leases, net of current portion

 

189,060

 

197,492

Deferred taxes

 

1,671

 

1,672

Income tax receivable agreement payable, net of current portion

 

3,419

 

3,301

Other noncurrent liabilities

 

8,978

 

5,679

Total liabilities

 

409,033

 

379,186

Commitments and contingencies

 

  

 

  

Stockholders’ Equity

 

  

 

  

Preferred stock, $0.01 par value, 100,000,000 shares authorized; none issued or outstanding

 

 

Common stock, $0.01 par value, 200,000,000 shares authorized; 35,854,122 and 35,126,582 shares issued and outstanding

 

359

 

351

Additional paid-in-capital

 

334,088

 

330,950

Accumulated deficit

 

(76,889)

 

(85,988)

Accumulated other comprehensive (loss) income

 

(999)

 

253

Total stockholders’ equity

 

256,559

 

245,566

Total liabilities and stockholders’ equity

$

665,592

$

624,752

See notes to condensed consolidated financial statements (unaudited).

3

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Amounts in thousands, except share data)

    

Thirteen Weeks Ended

    

Twenty-Six Weeks Ended

    

June 24, 2020

June 26, 2019

June 24, 2020

June 26, 2019

Revenue

 

  

 

  

 

  

 

  

 

Company-operated restaurant revenue

$

87,707

$

100,139

$

180,341

$

197,289

Franchise revenue

 

6,719

 

7,918

 

13,781

 

14,362

Franchise advertising fee revenue

 

5,178

 

5,683

 

10,645

 

11,066

Total revenue

 

99,604

 

113,740

 

204,767

 

222,717

Cost of operations

 

  

 

  

 

  

 

  

Food and paper cost

 

22,873

 

27,886

 

48,435

 

55,038

Labor and related expenses

 

25,759

 

29,272

 

54,452

 

58,848

Occupancy and other operating expenses

 

21,922

 

23,032

 

44,031

 

46,259

Company restaurant expenses

 

70,554

 

80,190

 

146,918

 

160,145

General and administrative expenses

 

10,465

 

9,348

 

19,796

 

20,696

Franchise expenses

 

6,627

 

7,542

 

13,538

 

13,686

Depreciation and amortization

 

4,168

 

4,454

 

8,537

 

9,215

Loss on disposal of assets

 

27

 

134

 

127

 

178

Recovery of securities lawsuits related legal expenses and other insurance claims

 

(123)

 

(10,000)

 

(123)

 

(10,000)

Impairment and closed-store reserves

 

437

 

565

 

2,839

 

874

Loss on disposition of restaurants

 

 

927

 

 

5,051

Total expenses

 

92,155

 

93,160

 

191,632

 

199,845

Income from operations

 

7,449

 

20,580

 

13,135

 

22,872

Interest expense, net

 

908

 

922

 

1,813

 

1,781

Income tax receivable agreement expense (income)

 

290

 

(94)

 

170

 

77

Income before provision for income taxes

 

6,251

 

19,752

 

11,152

 

21,014

Provision for income taxes

 

752

 

5,665

 

2,053

 

6,014

Net income

$

5,499

$

14,087

$

9,099

$

15,000

Net income per share

 

  

 

  

 

  

 

  

Basic

$

0.16

$

0.37

$

0.26

$

0.39

Diluted

$

0.16

$

0.37

$

0.26

$

0.38

Weighted-average shares used in computing net income per share

 

  

 

  

 

  

 

  

Basic

 

34,836,410

 

37,939,912

 

34,747,785

 

38,296,807

Diluted

 

35,410,198

 

38,580,722

 

35,382,607

 

39,043,477

See notes to condensed consolidated financial statements (unaudited).

4

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Amounts in thousands, except share data)

    

Thirteen Weeks Ended

    

Twenty-Six Weeks Ended

June 24, 2020

June 26, 2019

June 24, 2020

    

June 26, 2019

Net income

$

5,499

$

14,087

$

9,099

$

15,000

Other comprehensive loss (income)

 

  

 

  

 

 

Changes in derivative instruments

 

  

 

  

 

 

Unrealized net losses arising during the period from interest rate swap

 

296

 

 

1,755

 

Reclassifications of losses into net income

 

(81)

 

 

(42)

 

Income benefit

 

(58)

 

 

(461)

 

Other comprehensive loss, net of taxes

 

157

 

1,252

 

Comprehensive income

$

5,342

$

14,087

$

7,847

$

15,000

5

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Amounts in thousands, except share data)

Thirteen Weeks Ended June 24, 2020

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income (Loss)

    

Equity

Balance, March 25, 2020

35,089,983

$

351

$

331,484

$

(82,388)

$

(842)

$

248,605

Stock-based compensation

 

 

727

 

 

 

727

Issuance of common stock related to restricted stock

436,263

4

(4)

Issuance of common stock upon exercise of stock options

372,556

4

2,161

2,165

Shares repurchased for employee tax withholdings

(20,193)

(280)

(280)

Forfeiture of common stock related to restricted shares

(24,487)

 

 

 

 

 

Other comprehensive loss, net of tax

 

 

 

 

(157)

 

(157)

Net income

 

 

 

5,499

 

 

5,499

Balance, June 24, 2020

35,854,122

$

359

$

334,088

$

(76,889)

$

(999)

$

256,559

Thirteen Weeks Ended June 26, 2019

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income

    

Equity

Balance, March 27, 2019

38,730,204

$

388

$

372,825

$

(109,975)

$

263,238

Stock-based compensation

 

 

641

 

 

 

641

Issuance of common stock related to restricted shares

323,489

 

3

 

(3)

 

 

 

Issuance of common stock upon exercise of stock options

6,709

 

 

80

 

 

 

80

Shares repurchased for employee tax withholdings

(24,172)

 

(1)

 

(278)

 

 

 

(279)

Repurchase of common stock

(1,303,282)

 

(13)

 

(14,930)

 

 

 

(14,943)

Net income

 

 

 

14,087

 

 

14,087

Balance, June 26, 2019

37,732,948

$

377

$

358,335

$

(95,888)

$

$

262,824

6

Table of Contents

Twenty-Six Weeks Ended June 24, 2020

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income (Loss)

    

Equity

Balance, December 25, 2019

35,126,582

$

351

$

330,950

$

(85,988)

$

253

$

245,566

Stock-based compensation

 

 

1,261

 

 

 

1,261

Issuance of common stock related to restricted stock

436,263

4

(4)

Issuance of common stock upon exercise of stock options

372,556

4

2,161

2,165

Shares repurchased for employee tax withholdings

(20,193)

(280)

(280)

Forfeiture of common stock related to restricted shares

(61,086)

 

 

 

 

 

Other comprehensive loss, net of tax

 

 

 

 

(1,252)

 

(1,252)

Net income

 

 

 

9,099

 

 

9,099

Balance, June 24, 2020

35,854,122

$

359

$

334,088

$

(76,889)

$

(999)

$

256,559

Twenty-Six Weeks Ended June 26, 2019

    

    

    

    

    

Accumulated

    

  

    

    

    

Additional

    

    

Other

    

Total

Common Stock

Paid-in

Accumulated

Comprehensive

Stockholders’

    

Shares

    

Amount

    

Capital

    

Deficit

    

Income

    

Equity

Balance, December 26, 2018

39,009,451

$

390

$

375,734

$

(110,888)

$

265,236

Stock-based compensation

 

 

1,129

 

 

 

1,129

Issuance of common stock related to restricted shares

301,371

 

3

 

(3)

 

 

 

Issuance of common stock upon exercise of stock options

6,709

 

 

80

 

 

 

80

Shares repurchased for employee tax withholdings

(25,747)

 

(1)

 

(294)

 

 

 

(295)

Repurchase of common stock

(1,558,836)

 

(15)

 

(18,311)

 

 

 

(18,326)

Net income

 

 

 

15,000

 

 

15,000

Balance, June 26, 2019

37,732,948

$

377

$

358,335

$

(95,888)

$

$

262,824

7

Table of Contents

EL POLLO LOCO HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)

    

Twenty-Six Weeks Ended

    

    

June 24, 2020

June 26, 2019

    

Cash flows from operating activities:

  

  

Net income

$

9,099

$

15,000

Adjustments to reconcile net income to net cash flows provided by operating activities:

 

 

Depreciation and amortization

 

8,537

 

9,215

Stock-based compensation expense

 

1,261

 

1,129

Income tax receivable agreement expense

 

170

 

77

Loss on disposition of restaurants

 

 

5,051

Loss on disposal of assets

 

127

 

178

Impairment of property and equipment

 

1,972

 

227

Amortization of deferred financing costs

 

126

 

126

Amortization of favorable and unfavorable leases, net

 

 

(362)

Deferred income taxes, net

 

(363)

 

5,799

Changes in operating assets and liabilities:

 

 

Accounts and other receivables, net

 

(7,610)

 

(2,084)

Inventories

 

55

 

277

Prepaid expenses and other current assets

 

3,021

 

(450)

Other assets

 

339

 

23

Accounts payable

 

3,610

 

1,057

Accrued salaries and vacation

 

(2,342)

 

(487)

Accrued insurance

 

698

 

1,163

Income taxes payable

 

2,069

 

(3)

Other accrued expenses and liabilities

 

(9,687)

 

(23,077)

Net cash flows provided by operating activities

 

11,082

 

12,859

Cash flows from investing activities:

 

  

 

  

Proceeds from disposition of restaurants

 

 

4,770

Purchase of property and equipment

 

(2,479)

 

(5,898)

Net cash flows used in investing activities

 

(2,479)

 

(1,128)

Cash flows from financing activities:

 

  

 

  

Minimum tax withholdings related to net share settlements

 

(280)

 

(295)

Payments on revolver and swingline loan

 

(10,700)

 

(15,000)

Borrowings on revolver and swingline loan

52,500

26,000

Proceeds from issuance of common stock upon exercise of stock options, net of expenses

 

2,165

 

80

Payment of obligations under finance leases

 

(16)

 

(53)

Stock buybacks

(18,151)

Net cash flows provided by (used in) financing activities

 

43,669

 

(7,419)

Increase in cash and cash equivalents

 

52,272

 

4,312

Cash and cash equivalents, beginning of period

 

8,070

 

6,969

Cash and cash equivalents, end of period

$

60,342

$

11,281

    

Twenty-Six Weeks Ended

    

June 24, 2020

June 26, 2019

Supplemental cash flow information

 

  

 

  

 

Cash paid during the period for interest

$

1,738

$

1,694

Cash paid during the period for income taxes

$

434

$

218

Unpaid purchases of property and equipment

$

846

$

980

Unpaid stock buybacks

$

$

310

See notes to the condensed consolidated financial statements (unaudited).