El Pollo Loco 2015 Annual Report Download - page 44

Table of Contents
The following discussion should be read in conjunction with Item 6, “Selected Financial Data,” and our consolidated financial statements and
the notes thereto included elsewhere in this report. In addition to historical information, this discussion contains forward-
looking statements that
involve risks, uncertainties, and assumptions that could cause actual results to differ materially from management’s expectations. See
“Forward-Looking Statements” and Item 1A, “Risk Factors.” We assume no obligation to update any of these forward-looking statements.
Basis of Presentation
We use a 52- or 53-week fiscal year ending on the last Wednesday of each calendar year. Fiscal 2012, 2013, and 2014 ended on December 26,
2012, December 25, 2013, and December 31, 2014, respectively. In a 52-week fiscal year, each quarter includes 13 weeks of operations. In a 53-
week fiscal year, the first, second, and third quarters each include 13 weeks of operations, and the fourth quarter includes 14 weeks of
operations. Approximately every six or seven years a 53-week fiscal year occurs. Fiscal 2012 and 2013 were 52-week fiscal years. Fiscal 2014
was a 53-week fiscal year. 53-week years may cause revenues, expenses, and other results of operations to be higher due to the additional week
of operations. Fiscal years are identified in this report according to the calendar years in which they ended. For example, references to fiscal
2014 refer to the fiscal year ended December 31, 2014.
Overview
El Pollo Loco is a differentiated and growing restaurant concept that specializes in fire-grilling citrus-marinated chicken in front of our
customers, operating in the LSR segment. We believe that we offer the quality of food and dining experience typical of fast casual restaurants
while providing the speed, convenience, and value typical of traditional QSRs, a combination that we call “QSR+” and that provides a value-
oriented fast casual dining experience. Our distinctive menu features our signature product—citrus-marinated fire-grilled chicken—and a variety
of Mexican-inspired entrees that we create from our chicken. We offer our customers healthier alternatives to traditional food on the go, served
by our engaging team members in a colorful, bright, and contemporary restaurant environment. We serve individual and family-sized chicken
meals, a variety of Mexican-inspired entrees, sides, and, throughout the year, on a limited-time basis, alternative proteins like shrimp, carnitas,
and beef. Our entrees include favorites such as our Poblano Avocado Burrito, Under 500 Calorie Mango Grilled Tostada, Ultimate Pollo Bowl,
Baja Shrimp Tacos, and Chicken, Bacon & Guacamole Stuffed Quesadilla. Our freshly-prepared salsas and dressings are prepared daily,
allowing our customers to create their favorite flavor profiles to enhance their culinary experience. Our distinctive menu with healthier
alternatives appeals to consumers across a wide variety of socio-economic backgrounds and drives our balanced day-part mix.
Growth Strategies and Outlook
We plan to continue to expand our business, drive restaurant sales growth, and enhance our competitive positioning, by executing on the
following strategies:
As of December 31, 2014, we had 415 locations in five states. In fiscal 2013, we opened two new company-operated and five new franchised
restaurants. In fiscal 2014, we opened eleven new company-operated and five new franchised restaurants across Arizona, California, Nevada,
and Texas. Over the long term, we plan to grow the number of El Pollo Loco restaurants by 8% to 10% annually. To increase comparable
restaurant sales, we plan to
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ITEM 7.
MANAGEMENT
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S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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expand our restaurant base;
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increase our comparable restaurant sales; and
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enhance operations and leverage our infrastructure.