El Pollo Loco 2015 Annual Report Download - page 5

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Table of Contents
FORWARD-LOOKING STATEMENTS
Certain statements in this report are forward-looking. Those statements reflect our current views with respect to our business, future events,
financial performance, and our industry in general. Statements that include the words such as “expect,” “intend,” “plan,” “believe,” “project,”
“forecast,” “estimate,” “may,” “should,” and “anticipate” may be forward-looking. We base forward-looking statements on history, experience,
expectations, and projections. Forward-looking statements address matters that involve risks and uncertainties. We caution you therefore not to
place undue reliance on forward-looking statements. We make no guarantees regarding outcomes, and assume no obligations to update the
forward-looking statements herein, except pursuant to law. A non-exhaustive list of factors that could cause outcomes to differ materially from
our expectations includes:
1
• the adverse impact of economic conditions on our (i) operating results and financial condition, (ii) ability to comply with the terms and
covenants of our debt agreements, and (iii) ability to pay or refinance our existing debt or to obtain additional financing,
•
vulnerability to changes in consumer preferences and economic conditions,
•
vulnerability to conditions in the greater Los Angeles area,
•
ability to open new restaurants in new and existing markets, including difficulty in finding sites and in negotiating acceptable leases,
•
delayed or cancelled future restaurant openings,
•
restaurant closures, due to financial performance or otherwise,
•
increases in chicken and other input costs,
•
negative publicity, whether or not valid,
•
concerns about food safety and quality and about food
-
borne illness, particularly avian flu,
•
dependence on frequent and timely deliveries of food and supplies,
•
problems with our primary distributor,
•
our history of net losses, including the possibility of future net losses,
•
our ability to service our substantial level of indebtedness,
•
our ability to compete successfully with other quick
-
service and fast casual restaurants,
•
underperformance of new menu items, advertising campaigns, and restaurant designs and remodelings,
•
our reliance on our franchisees, who may incur financial hardships, lose access to credit, close restaurants, or declare bankruptcy,
•
our limited control over our franchisees,
•
potential liability for franchisee acts,
•
ability to protect our name and logo and other proprietary intellectual property,
•
loss of the abilities, experience, and knowledge of current directors and officers,
•
matters relating to employment and labor laws,
•
impact from litigation such as wage and hour class action lawsuits,
•
labor shortages and increased labor costs,
•
our ability and the ability of our franchisees to renew leases at the ends of their terms,
• impact from federal, state, and local regulations relating to preparation and sale of food, zoning and building codes, and employee,
environmental, and other matters,