El Pollo Loco 2015 Annual Report Download - page 35

Table of Contents
In addition, failure to achieve and maintain an effective internal control environment could have a material adverse effect on our business and
stock price.
The market price and trading volume of our common stock have been and may be volatile, which could result in rapid and substantial losses
for our stockholders.
Prior to our IPO, there was no public market for our common stock. Shares of our common stock were sold in our IPO in July 2014 at a price of
$15.00 per share, and our common stock has subsequently traded as high as $41.70. An active, liquid, and orderly market for our common stock
may not be sustained, which could depress the trading price of our common stock or cause it to be highly volatile or subject to wide fluctuations.
The market price of our common stock has fluctuated and may continue to fluctuate, or may decline significantly in the future. Some of the
factors that could negatively affect our share price or result in fluctuations in the price or trading volume of our common stock include:
These broad market and industry factors may decrease the market price of our common stock, regardless of our actual operating performance.
The stock market in general has from time to time experienced extreme price and volume fluctuations, including recently. In addition, in the
past, following periods of volatility in the overall market and decreases in the market price of a company’s securities, securities class action
litigation has often been instituted against that company. Such litigation, if instituted against us, could result in substantial costs and a diversion
of our management’s attention and resources.
Future offerings of debt or equity securities by us may adversely affect the market price of our common stock.
In the future, we may attempt to obtain financing, or to further increase our capital resources, by issuing additional shares of our common stock
or by offering other equity securities, or debt, including senior or
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variations in our quarterly or annual operating results;
• changes in our earnings estimates, if provided, or differences between our actual financial and operating results and those expected by
investors and analysts;
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the contents of published research reports about us or our industry, or the failure of securities analysts to cover our common stock;
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additions or departures of key management personnel;
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any increased indebtedness that we may incur in the future;
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announcements by us or others and developments affecting us;
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actions by institutional stockholders;
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litigation and governmental investigations;
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legislative or regulatory changes;
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judicial pronouncements interpreting laws and regulations;
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changes in government programs;
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changes in market valuations of similar companies;
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speculation or reports by the press or investment community with respect to us or our industry in general;
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announcements by us or our competitors of significant contracts, acquisitions, dispositions, strategic relationships, joint ventures, or capital
commitments; and
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general market, political, and economic conditions, including local conditions in the markets in which we operate.