−Removed: 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.
−Removed: Our restaurants are located in California, Arizona, Nevada, Texas, Utah, Colorado and Louisiana.
+Added: We opened our first location on Alvarado Street in Los Angeles, California, in 1980, and have grown our restaurant system to 498 domestic restaurants, comprised of 173 company-operated and 325 franchised restaurants as of December 25, 2024.
+Added: Our restaurants are located principally in California, but also in Arizona, Nevada, Texas, Utah, Colorado and Louisiana.
+Added: Additionally, as of December 25, 2024 we had 10 licensed restaurants in the Philippines.
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.
−Removed: We strive to offer food that integrates the culinary traditions of Mexico with the healthier lifestyle of Los Angeles.
−Removed: 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.
−Removed: 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.
−Removed: Our entrees include favorites such as our Chicken Avocado Burrito, Pollo Fit entrees, chicken tostada salads, and Pollo Bowls.
−Removed: 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.
+Added: We strive to make and serve food that is “better for you” and also flavorful.
+Added: Our distinctive menu features our signature product, citrus-marinated fire-grilled chicken, served in a variety of Mexican-inspired entrees, like burritos and tostadas, healthier choices, like salads, and chicken meals available in a variety of sizes to feed individuals and larger groups.
+Added: Our entrees include favorites such as our Guacamole Chicken Burrito, Double Chicken Tostada, Crunchy Chicken Taco, and the Original Pollo Bowl®.
+Added: Our famous Creamy Cilantro dressing 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.
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Financial Statements and Supplementary Data.”
−Removed: M arket Trends and Uncertainties
−Removed: On September 28, 2023, Governor Newsom signed AB 1228 into law, which repealed and replaced the Fast Food Accountability and Standards Recovery Act (“FAST Act”) on January 1, 2024.
−Removed: Pursuant to AB 1228, the minimum wage at fast food restaurants that are part of brands which have more than 60 establishments nationwide will rise to $20 an hour on April 1, 2024, and a Fast Food Council created by AB 1228 will have limited power to approve annual wage increases until 2029.
−Removed: Under the law, the Fast Food Council will also have the power to develop and propose minimum standards for fast food workers, including standards for working hours, working conditions, and health and safety.
−Removed: As a result of AB 1228, we expect our labor and regulatory compliance costs will increase beginning in fiscal 2024 and that our results of operations and profitability will be adversely affected if we are not able to implement other measures to counter these increased costs.
−Removed: We have experienced inflationary pressures affecting our operations in certain areas such as food cost, labor costs, construction costs and other restaurant operating costs.
−Removed: We have been able to substantially offset these inflationary and other cost pressures through various actions, such as increasing menu prices, managing menu mix, and productivity improvements.
−Removed: However, we expect these inflationary and other cost pressures to continue into fiscal year 2024 and we may not be able to offset cost increases in the future.
The restaurant industry is divided into two segments:
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We operate within the broader LSR segment, and we strive to offer the food and dining experience of a fast-casual restaurant and the speed, value, and convenience of a quick-service restaurant (“QSR”).
−Removed: We strive to offer menu options that are made with fresh ingredients
−Removed: and provide a “better for you” alternative to typical fast food, which are also inspired by the culinary and cultural traditions of Mexico and our hometown of Los Angeles.
+Added: We strive to offer menu options that are made with fresh ingredients and provide a quality, “better for you” alternative to typical fast food, all while using Mexican flavors to make our food craveable and delicious.
Our Competitive Strengths
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Differentiated Restaurant Concept with Broad Appeal.
−Removed: We believe that our food, which combines the culinary traditions of Mexico with the healthier lifestyle of Los Angeles, served in contemporary restaurant environments at reasonable prices, positions us well to satisfy the needs of our core Hispanic family market and appeal to the broader general market who seek convenient and high-quality meals at reasonable prices.
−Removed: We provide our customers with the opportunity to enjoy citrus-marinated, fire-grilled chicken and Mexican-inspired entrees containing distinctive ingredients such as avocados, organic greens and serrano peppers at price points that appeal to a broad consumer base.
+Added: We believe that our food, which is quality fire-grilled chicken served in a variety of freshly prepared meals and entrees and inspired by broadly appealing Mexican flavors, served in contemporary restaurant environments at reasonable prices, positions us well to satisfy the needs of a wide customer base by appealing to the broader general market who seek convenient and high-quality meals at reasonable prices.
+Added: We provide our customers with the opportunity to enjoy citrus-marinated, fire-grilled chicken and entrees containing distinctive ingredients such as fresh avocados and serrano peppers at price points that appeal to a broad consumer base.
We believe that our entree prices are typically lower than the fast-casual segment, and a slight premium to the QSR segment.
−Removed: We prepare our entrees to order in approximately four minutes and allow our customers the option to create their favorite flavor profiles using our freshly-prepared salsas before they enjoy their meals in our dining rooms or take their meals to go from the counter or the drive-thru.
−Removed: We also believe that our concept, which integrates the complexity of creating real food in real kitchens with the speed of our service model and the skill of our trained Grill Masters, provides a layer of competitive insulation around our restaurant model.
+Added: We prepare our entrees to order in approximately four minutes and customers can select from a variety of freshly prepared salsas to complement their meal selection.
+Added: also believe that our concept, which integrates the complexity of creating real food in real kitchens with the speed of our service model and the skill of our trained Grill Masters, provides a layer of competitive insulation around our restaurant model.
We believe that our positioning appeals to a broad customer base, and that our brand crosses over traditional age, ethnic, and income demographics, giving consumers the best of both the fast-casual and QSR segments.
We seek to position ourselves as a differentiated restaurant concept, which we believe sources traffic from both dining segments and, as a result, we expect it to drive transaction growth in the future.
−Removed: Mexican-Inspired, Fresh-Made Fire-Grilled Chicken and Entrees.
−Removed: Our signature product is our chicken, marinated with a proprietary recipe of citrus juice, garlic, and spices, which serves as the foundation of our distinctive menu of flavorful bone-in chicken meals and entrees inspired by Mexico and LA.
−Removed: With menu items such as our signature individual chicken meals, family dinners, Chicken Tostada Salad, Pollo Bowl®, Chicken Avocado Burrito, and Double Chicken Avocado Salad, we believe that we offer our customers a “better for you” alternative to traditional food on-the-go.
−Removed: Our entrees are prepared using fresh ingredients with recipes inspired by Mexican cuisine.
+Added: Mexican-Inspired, Freshly-Prepared Fire-Grilled Chicken and Entrees.
+Added: Our signature product is our chicken, marinated with a proprietary recipe of citrus juice, garlic, and spices, which serves as the foundation of our distinctive menu of flavorful bone-in chicken meals and entrees.
+Added: With menu items such as our signature Fire-Grilled Chicken Meals and Family Meals, Double Chicken Tostada, the Original Pollo Bowl®, Guacamole Chicken Burrito, and Double Chicken Avocado Salad, we believe that we offer our customers a “better for you” alternative to traditional food on-the-go.
The majority of our menu items are prepared in-restaurant using fresh ingredients, including our bone-in chicken and chicken breast filets, rice, salsas, and cilantro dressing.
−Removed: These items start with our chicken, which is marinated in our restaurants daily.
+Added: Our entrees and meals start with our chicken, which is marinated in our restaurants daily.
From there, our Grill Masters fire-grill and hand-chop our chicken to order.
−Removed: Our team members create our salsas, and cilantro dressings with fresh tomatoes, avocados, serrano peppers, and cilantro.
−Removed: In addition, our rice is seasoned and simmered in our restaurants throughout each day.
+Added: Our team members create our salsas and cilantro dressings with fresh tomatoes, avocados, serrano peppers, and cilantro, and our rice and beans are seasoned and simmered in our restaurants throughout each day.
Our bone-in chicken meals and Mexican-inspired entrees accounted for 41% and 52% of our company-operated restaurant sales in 2024, respectively, 43% and 50%, respectively, in 2023, and 44% and 50%, respectively, in 2022.
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We seek to position ourselves as a differentiated LSR business, which we believe drives restaurant operating results that are competitive with other leading restaurant concepts in both the fast-casual and QSR industry segments.
−Removed: We believe that
−Removed: our restaurant model is designed to generate strong cash flow, consistent restaurant-level financial results, and high returns on invested capital.
+Added: We believe that our restaurant model is designed to generate strong cash flow, consistent restaurant-level financial results, and compelling returns on invested capital.
In 2024, our company-operated restaurants generated average annual sales per restaurant of approximately $2.3 million and restaurant-level contribution margins of 17.4%.
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Most of our senior management team has extensive operating experience in the restaurant industry.
−Removed: Members of the senior leadership team include Maria Hollandsworth as our interim President and Chief Executive Officer and Chief Operating Officer, Ira Fils as our Chief Financial Officer, Anne Jollay as our Chief Legal and People Officer, Brian Carmichall as our Chief Development Officer and Jill Adams as our Chief Marketing Officer.
+Added: Members of the senior leadership team include Elizabeth Williams as our Chief Executive Officer, Maria Hollandsworth as our President and Chief Operating Officer, Ira Fils as our Chief Financial Officer, Anne Jollay as our Chief Legal Officer, Bjorn Erland as our Chief People Officer, Tim Welsh as our Chief Development Officer, Jill Adams as our Chief Marketing Officer, and Clark Matthews as our Chief Information Officer.
Our Growth Strategy
−Removed: We believe that we are well-positioned for sales growth because of our strong appeal to our core Hispanic family market, appeal to the broader general market, disciplined business model, and strong unit economics.
−Removed: Through 2019, our system experienced annual comparable restaurant sales growth for eight consecutive years.
+Added: We believe that we are well-positioned for sales growth because of our position in the high growth chicken category, appeal to a broad customer base, quality ingredients and a menu with broadly appealing Mexican flavors, disciplined business model, and strong unit economics.
In 2024, 2023 and 2022, our comparable restaurant sales grew 2.8%, 0.3% and 5.9%, respectively.
We plan to continue to expand our business, drive restaurant sales growth and increase company profits by executing our Strategic Plan, which consists of the following five key strategies:
−Removed: Attract, Hire, and Retain Top Talent
−Removed: We believe that success in the restaurant industry is highly correlated with employee engagement, which is dependent upon hiring, retaining, developing and motivating employees.
−Removed: We invest in competitive pay and leadership training to ensure that our managers have the tools they need to be effective leaders and motivating coaches.
−Removed: We continue to build a culture that embodies “Heart-Centered Leadership,” which is predicated on servant-led leadership, employee recognition and community involvement.
−Removed: We believe that executing on our “Heart-Centered Leadership” model will result in a better and more meaningful work experience for our employees.
−Removed: We believe that the key to building sustainable, consistent restaurant operations is through the development of a strong restaurant leader bench, including area managers, general managers, assistant managers and shift leaders.
−Removed: To that end, we have put a renewed focus on leadership development, not only to benefit our current restaurant base, but also to ensure we have the leaders necessary for the continued growth of the El Pollo Loco brand.
−Removed: An important part of our culture and how our “Heart-Centered Leadership” manifests into the broader community is shown through our local support.
−Removed: In 2004, we created El Pollo Loco Charities, a non-profit charity, to support the communities surrounding our restaurants.
−Removed: El Pollo Loco Charities, together with the Company, have provided over 15,000 meals per year to underprivileged families, through organizations like Food on Foot, Habitat for Humanity, Children’s Institute, and Court Appointed Special Advocates.
−Removed: We will continue to look for ways to expand upon the impact that El Pollo Loco Charities can have in the communities in which we serve.
−Removed: EPL Hospitality
−Removed: Serving our customers and delivering on exceptional hospitality begins with having an operations and training model that allows for consistent delivery of our products and services.
−Removed: We believe that simplifying our restaurant operations will further enhance our ability to attract and retain the best employees and further improve customer service.
−Removed: In 2023, we continued to implement initiatives to make it easier for our employees to operate our restaurants.
−Removed: These included eliminating low-volume menu items with unique ingredients or complex builds, like our Keto Burrito, as well as purchasing pre-chopped serrano peppers and fresh cilantro to reduce prep and ensure consistency and using a new equipment to simplify salsa production.
−Removed: Initiatives currently in test include a chicken holding cabinet, which improves overall quality and chicken availability during off-peak hours.
−Removed: These and other initiatives are intended to enable our restaurant employees to increase their focus on delivering exceptional hospitality and speed of service to our customers.
−Removed: We believe that this continued focus will lead to higher sales over the longer term.
−Removed: Be Known For Our Famous Fire-Grilled Chicken
+Added: Brand That Wins
+Added: We believe that being the craveable, affordable, better for you chicken leader, reinforced with our marketing and product offering, positions us to deliver on our first strategic pillar, Brand That Wins.
+Added: Our marketing and advertising focuses on quality and freshly prepared ingredients to reinforce the cooking we do in our restaurants every day.
Our chicken is our differentiator.
−Removed: We marinate, grill, chop, and shred chicken every day in our restaurants to deliver delicious chicken meals, Mexican-inspired entrees, and family meals to our customers.
+Added: We marinate, grill, chop, and shred chicken every day in our restaurants to deliver delicious fire-grilled chicken to our customers.
Our grilled chicken is versatile and is offered in bone-in and boneless options, giving our customers choice and variety.
−Removed: Our chicken will continue to be
−Removed: the focus of our advertising campaigns and consumer messaging, and we believe that we are positioned uniquely to be the alternative to fried chicken in the marketplace.
+Added: Our chicken will continue to be the focus of our advertising campaigns and consumer messaging, and we believe that we are positioned uniquely to be the alternative to fried chicken and overindulgent fast food in the marketplace.
We believe that we are uniquely positioned within the LSR restaurant space.
−Removed: We will continue to adapt our menu to create family-sized dinner options and lunch entrees that complement our signature fire-grilled chicken and are inspired by the culinary and cultural traditions of Mexico and our hometown of Los Angeles.
+Added: We will continue to adapt our menu to create individual entrees and group meals that feature our fire-grilled chicken and are inspired by the flavors of Mexico.
We believe that we have opportunities for menu innovation around different forms of chicken and portability as we look to increase customer frequency and earn share from the competition.
In addition, we will continue to tap into the need for healthier offerings by building on the success of our fire-grilled chicken and “better for you” products.
−Removed: Our marketing and operations teams collaborate to ensure that the items developed in our test kitchen can be executed to our high standards in our restaurants with the convenience and value that our customers have come to expect.
−Removed: We engage customers through our seasonal product calendar, which features existing product platforms, like our Double Chicken Tostadas and Stuffed Quesadillas, and limited-time offers like our Chopped Chicken Salads.
−Removed: Our key points of differentiation are communicated through our advertising campaign, which highlights the brand’s authenticity, “better for you” menu options and dedication to high-quality ingredients.
+Added: We engage customers through our seasonal product calendar, which features existing product platforms, like our Double Chicken Tostadas and Fire-Grilled Burritos, and limited-time offers like our Double Pollo Fit® Bowls.
+Added: Our key points of differentiation are communicated through our advertising campaign, which highlights our food quality and “better for you” menu options.
We tailor our message from television and direct mail, which garners broad exposure, to our Loco Rewards loyalty program and social media platform where we engage in more personalized marketing.
−Removed: Digital-Centric In Service of Improving The Customer Experience
+Added: Hospitality Mindset
+Added: Serving our customers and delivering on exceptional hospitality begins with having an operations and training model that allows for consistent delivery of our products and services.
+Added: We believe that simplifying our restaurant operations will further enhance our ability to attract and retain the best employees and further improve customer service.
+Added: In 2024, we continued to implement initiatives to make it easier for our employees to operate our restaurants.
+Added: These included eliminating low-volume menu items with unique ingredients or complex builds, like our Keto Burrito, as well as purchasing pre-chopped serrano peppers and fresh cilantro to reduce prep and ensure consistency, and using new equipment to simplify salsa production.
+Added: Our labor and deployment system allows us to focus our team on serving customers quickly and efficiently, while maintaining our quality and service standards.
+Added: Initiatives currently in test include a chicken holding cabinet, which improves overall quality and chicken availability during off-peak hours, and self-ordering kiosks which make ordering easy for our customers.
+Added: These and other initiatives are intended to enable our restaurant employees to increase their focus on delivering exceptional hospitality and speed of service to our customers.
+Added: We believe that this continued focus will lead to higher sales over the longer term.
+Added: Digital First
We believe that investing in consumer-facing technology is critical to further differentiating our brand and reaching customers for whom convenience and value are key decision factors.
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In addition to offering digital ordering through our website and mobile app, we participate in 3rd party delivery marketplaces.
−Removed: We currently have partnerships with DoorDash, Postmates, Uber Eats, and Grub Hub.
+Added: We currently have partnerships with DoorDash, Postmates, Uber Eats,
As of December 25, 2024, DoorDash maintained exclusivity for delivery orders placed directly with our restaurants.
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We plan to continue investing in our loyalty and delivery programs as well as other technology platforms to continue making it easier for customers to access our food.
−Removed: Expand As An Asset Light Company
+Added: Winning Unit Economics
+Added: We believe that creating strong margins is as important as driving topline sales.
+Added: In 2024 we launched a concerted effort analyzing our product offering, labor, and controllables to determine areas of opportunity.
+Added: Through this effort, we identified several workstreams to optimize product costs, supplier efficiencies, and labor deployment.
+Added: While some of the savings were realized in 2024, we believe that these initiatives will have a positive impact on overall profitability for future years as well.
+Added: In addition to managing cost of sales, we also believe that having a cost-improved new store prototype will have a positive impact on overall profitability and fuel growth.
+Added: Work was completed in 2024 to reduce the overall cost of the restaurant prototype through updating layout, materials, and furnishings, while keeping a modern, durable, and quality aesthetic.
+Added: The brand will open its first cost-improved prototype in 2025.
+Added: Drive Unit Growth Again Through National Expansion
We believe that execution of our first four strategies will enable us to grow our restaurant base.
Our restaurant model is designed to generate strong cash flow, attractive restaurant-level financial results and high returns on invested capital .
−Removed: During fiscal 2023, we opened five new stores, of which three were franchised and two were company-owned.
−Removed: One of these locations was our second in the greater Denver-area, a new market for El Pollo Loco.
−Removed: This location is performing well and provides another data point that our brand is poised to grow beyond core markets.
+Added: During fiscal 2024, we opened four new stores, of which two were franchised and two were company-owned.
In addition to unit growth, we believe that remodels and refreshes to our existing fleet will keep El Pollo Loco relevant to our customers and keep them coming back.
−Removed: In 2023, we completed 15 company-operated restaurant remodels, and our franchisees completed 33 remodels.
+Added: In 2024, we completed eight company-operated restaurant remodels, and our franchisees completed 44 remodels.
In 2025, we plan to continue our standard practices for remodels, including 30-40 company-operated and 30-40 franchised restaurants.
−Removed: We expect future new unit development to be led by franchisees, through both in-fill in existing markets and expansion into adjacent and contiguous new markets.
−Removed: In order to expand into new markets, we believe that we need to source new
−Removed: franchisees and, therefore, we expect to invest more resources in sourcing and onboarding them in the future, including franchise recruitment, franchise operations, and field marketing,
+Added: We expect future new unit development to be led by franchisees and complemented by company store growth, through both in-fill in existing markets and expansion into adjacent and contiguous new markets.
+Added: In order to expand into new markets, we believe that we need to source new franchisees and, therefore, we expect to invest more resources in sourcing and onboarding them in the future, including franchise recruitment, franchise operations, and field marketing.
Site Selection and Expansion
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We believe that our restaurant model is designed to generate strong cash flow, attractive restaurant-level financial results, and high returns on invested capital, which we believe provide us with a strong foundation for unit growth over the long-term.
−Removed: In 2023, two new company-operated restaurants were opened in Nevada and three new franchised restaurants were opened, one in California, one in Colorado, and one in Utah.
−Removed: In fiscal 2024, we intend to open two new company-operated restaurants in California and five to seven new franchised restaurants.
+Added: In 2024, two new company-operated restaurants were opened in California and two new franchised restaurants were opened, one in California and one in Texas.
+Added: In fiscal 2025, we intend to open one to two new company-operated restaurant in California and eight to nine new franchised restaurants.
Site Selection Process
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Our in-house development team has extensive experience building such brands as Burger King, Carl’s Jr., Jimmy John’s, QDOBA, Baskin Robbins, Denny’s and Dunkin’ Brands.
−Removed: We use a combination of our in-house development team and outside real estate consultants to locate, evaluate, and negotiate new sites using various criteria, including demographic characteristics, daytime population thresholds, and traffic patterns, along with the potential visibility of, and accessibility to, the restaurant.
+Added: We use a combination of our in-house development team and outside real estate
+Added: consultants to locate, evaluate, and negotiate new sites using various criteria, including demographic characteristics, daytime population thresholds, and traffic patterns, along with the potential visibility of, and accessibility to, the restaurant.
The process for selecting locations incorporates management’s experience and expertise and includes extensive data collection and analysis.
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In addition, constant monitoring of the dining room occurs to ensure the beverage station is clean and supplied with products.
−Removed: We utilize systems that are aimed at measuring our ability to deliver a “best in class” experience for our customers.
+Added: We utilize systems that are aimed at measuring our ability to deliver a great experience for our customers.
These systems include customer surveys, social media ratings and speed-of-service performance trends.
−Removed: The operational results from all of these sources are then presented on an operations dashboard that displays the measures in an easy-to-read online format that corporate and restaurant-level management and franchisees can utilize in order to develop
−Removed: specific plans for continuous performance improvement.
−Removed: In addition, all company operated restaurants utilize digital “communication boards”, which communicate sales, costs and consumer data in real time to our restaurant managers.
+Added: These results are then presented on an operations dashboard that displays the measures for corporate and restaurant-level management and franchisees to utilize in developing specific plans for continuous performance improvement.
+Added: In addition, all company operated restaurants utilize digital communication boards, which communicate real-time sales and other data to our restaurant managers.
We have food safety and quality assurance programs designed to maintain the highest standards for the food and the food preparation procedures that are used by both company-operated and franchised restaurants.
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To lead our restaurant management teams, we have area leaders, each of whom is responsible for 6 to 9 restaurants.
−Removed: Overseeing the area leaders are three Regional Directors of Operations who report up to our Chief Operating Officer.
+Added: Overseeing the area leaders are three Regional Directors of Operations who report up to the Sr.
+Added: Director of Operation who reports to our Chief Operating Officer.
Franchise operations are supported by four directors of franchise and a Vice President, Franchise Operations, who reports to the Chief Operating Officer.
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We strive to distinguish the El Pollo Loco brand by building brand equity that we believe not only accentuates our strengths but also deepens the strong emotional connections we have with our customers.
−Removed: We promote our restaurants and products by emphasizing our points of differentiation, which include our Mexican heritage, our fresh ingredients and made-from-scratch preparation, and the cooking of our citrus-marinated chicken on open fire grills in our kitchens, as well as the convenience and quality we offer for families.
−Removed: We use multiple marketing channels, including television, radio and digital.
−Removed: We advertise on local broadcast and cable television.
−Removed: We use both traditional and digital media channels to have targeted advertising to reach our audience segments.
+Added: We promote our restaurants and products by emphasizing our points of differentiation, which include our Mexican flavors, our fresh ingredients and preparation methods, and the cooking of our citrus-marinated chicken on open fire grills in our kitchens, as well as the convenience and quality we offer for families.
+Added: We use multiple marketing channels, including traditional and digital media, and leverage video, static, and print content to effectively deliver our marketing messages.
+Added: We target our advertising, using local broadcast and cable television to reach a wide audience, and digital media and streaming to layer on more targeted audience segments.
Through our public relations efforts, we engage notable food editors, influencers and bloggers on a range of topics to help promote our products.
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Available at every location and accessible from elpolloloco.com or the El Pollo Loco mobile app, any order can be placed and paid for before arriving at the restaurant.
−Removed: El Pollo Loco has partnered with Postmates, DoorDash, UberEats and Grubhub as additional methods for ordering.
+Added: El Pollo Loco has partnered with Postmates, DoorDash, Uber Eats and Grubhub as additional methods for ordering.
El Pollo Loco also operates direct delivery via elpolloloco.com or the Loco Rewards App, which is exclusively fulfilled by DoorDash.
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We have a quality assurance team and third-party accredited auditors that perform comprehensive supplier audits on a frequency schedule based on the potential food safety risk for each product.
−Removed: We contract with McLane Company (our “primary distributor”), a major foodservice distributor, for substantially all of our food and supplies, including the poultry that our restaurants receive from suppliers.
+Added: We contracted with McLane Company (our “primary distributor”), a major foodservice distributor, for substantially all of our food and supplies, including the poultry that our restaurants receive from suppliers for fiscal 2024.
+Added: Starting in March 2025, Performance Food Group Customized Distribution (“PFG Customized”) will be our new primary distributor for substantially all of our food and supplies, including the poultry that our restaurants receive from suppliers.
Our primary distributor delivers supplies to most of our restaurants two to three times per week.
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In the past, we have entered into contracts ranging from one to two years depending on current and expected market conditions.
−Removed: We currently source poultry from six suppliers, with three accounting for approximately 70% of our purchases for fiscal 2024.
−Removed: More than half of our poultry purchases have a fixed price through the end of 2024.
+Added: During fiscal 2024, we sourced poultry from six suppliers, with three accounting for approximately 77% of our purchases for fiscal 2024.
+Added: During fiscal 2025, more than 80% of our poultry purchases have been contracted at a fixed price.
Intellectual Property
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Patent and Trademark Office, and El Pollo Loco ® in approximately 40 foreign countries and the European Union.
−Removed: In addition, the El Pollo Loco logo, website name and address, Facebook, Twitter, Instagram and YouTube accounts are our intellectual property.
+Added: In addition, the El Pollo Loco logo, website name and address, Facebook, X (formerly Twitter), Instagram and YouTube accounts are our intellectual property.
Our policy is to pursue and maintain registration of service marks and trademarks in those countries where business strategy requires us to do so, and to oppose vigorously any infringement or dilution of the service marks or trademarks in those countries.
−Removed: maintain the recipe for our chicken marinade, as well as certain proprietary standards, specifications, and operating procedures, as trade secrets or as confidential proprietary information.
+Added: We maintain the recipe for our chicken marinade, as well as certain proprietary standards, specifications, and operating procedures, as trade secrets or as confidential proprietary information.
We operate in the restaurant industry, which is highly competitive and fragmented.
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We and our franchisees are subject to various federal, state and local laws and regulations that govern our business operations, including those governing:
−Removed: ● employment and wage and hour practices, including, but not limited to, minimum wage rates, overtime, meal and rest periods, prevention of discrimination, harassment, and retaliation, employment of minors, paid and family leave, unemployment tax rates, workers’ compensation rates, suitable seating, and citizen requirements, and other working conditions;
+Added: ● employment and wage and hour practices, including, but not limited to, minimum wage rates, overtime, meal and rest periods, prevention of discrimination, harassment, and retaliation, employment of minors, paid and family leave, unemployment tax rates, workers’ compensation rates, suitable seating, and citizen, visa, or lawful permanent resident requirements, and other working conditions;
● privacy and data security, including the collection, maintenance and use of information regarding employees and guests;
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We are also subject to the Americans with Disabilities Act, which prohibits discrimination on the basis of disability in public accommodations and employment, and which may require us to design or modify our restaurants to make reasonable accommodations for disabled individuals.
−Removed: See Item 1A “Risk Factors” and “Environmental Matters” above in this Form 10-K for a discussion of risks relating to federal, state, local and regulation of our business.
+Added: See “Item 1A.
+Added: Risk Factors” and the subsection titled “Environmental Matters” above in this Annual Report for a discussion of risks relating to federal, state, local and regulation of our business.
Management Information Systems
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Our primary human capital objective is employee engagement, which is dependent upon hiring, retaining, developing and motivating employees.
−Removed: We strive to build a culture centered around our mission, which is to “Feed the Love that Makes Us All Feel Like Family” and “Heart-Centered Leadership.” We believe this mission is predicated on servant-led leadership, employee recognition and community involvement.
+Added: We strive to build a culture centered around our mission, which is to “Feed the Love that Makes Us All Feel Like Family” and “Heart-Centered Leadership.” We believe this mission is predicated on
+Added: servant-led leadership, employee recognition and community involvement.
We offer our employees both online and on-the-job training.
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Our revenue per restaurant is typically lower in the first and fourth quarters due to reduced January and December transactions and higher in the second and third quarters.
−Removed: As a result of seasonality, our quarterly and annual results of operations and key performance indicators such as company restaurant revenue and comparable restaurant sales may fluctuate.
+Added: As a result of seasonality, our quarterly and annual results of operations and key performance indicators such as company-operated restaurant revenue and comparable restaurant sales may fluctuate.
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.