El Pollo Loco 2016 Annual Report Download - page 4
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FORWARD-LOOKING STATEMENTS
Certainstatementsinthisreportareforward-looking.Thosestatementsreflectourcurrentviewswithrespecttoourbusiness,futureevents,financialperformance,
andourindustryingeneral.Statementsthatincludethewordssuchas“expect,”“intend,”“plan,”“believe,”“project,”“forecast,”“estimate,”“may,”“should,”and
“anticipate”maybeforward-looking.Webaseforward-lookingstatementsonhistory,experience,expectations,andprojections.Forward-lookingstatements
addressmattersthatinvolverisksanduncertainties.Wecautionyouthereforenottoplaceunduerelianceonforward-lookingstatements.Wemakenoguarantees
regardingoutcomes,andassumenoobligationstoupdatetheforward-lookingstatementsherein,exceptpursuanttolaw.Anon-exhaustivelistoffactorsthatcould
causeoutcomestodiffermateriallyfromourexpectationsincludes:
·theadverseimpactofeconomicconditionsonour(i)operatingresultsandfinancialcondition,(ii)abilitytocomplywiththetermsandcovenantsofour
debtagreements,and(iii)abilitytopayorrefinanceourexistingdebtortoobtainadditionalfinancing,
·vulnerabilitytochangesinconsumerpreferencesandeconomicconditions,
·vulnerabilitytoconditionsinthegreaterLosAngelesarea,
·abilitytoopennewrestaurantsinnewandexistingmarkets,includingdifficultyinfindingsitesandinnegotiatingacceptableleases,
·delayedorcancelledfuturerestaurantopenings,
·restaurantclosures,duetofinancialperformanceorotherwise,
·increasesinchickenandotherinputcosts,
·negativepublicity,whetherornotvalid,
·concernsaboutfoodsafetyandqualityandaboutfood-borneillness,particularlyavianflu,
·dependenceonfrequentandtimelydeliveriesoffoodandsupplies,
·problemswithourprimarydistributor,
·ourhistoryofnetlosses,includingthepossibilityoffuturenetlosses,
·ourabilitytoserviceourlevelofindebtedness,
·ourabilitytocompetesuccessfullywithotherquick-serviceandfastcasualrestaurants,
·underperformanceofnewmenuitems,advertisingcampaigns,andrestaurantdesignsandremodelings,
·ourrelianceonourfranchisees,whomayincurfinancialhardships,loseaccesstocredit,closerestaurants,ordeclarebankruptcy,
·ourlimitedcontroloverourfranchisees,
·potentialliabilityforfranchiseeacts,
·abilitytoprotectournameandlogoandotherproprietaryintellectualproperty,
·lossoftheabilities,experience,andknowledgeofcurrentdirectorsandofficers,
·mattersrelatingtoemploymentandlaborlaws,
·impactfromlitigationsuchaswageandhourclassactionlawsuits,
·laborshortagesandincreasedlaborcosts,
·ourabilityandtheabilityofourfranchiseestorenewleasesattheendsoftheirterms,
·impactfromfederal,state,andlocalregulationsrelatingtopreparationandsaleoffood,zoningandbuildingcodes,andemployee,environmental,andother
matters,
·impactfromourincometaxreceivableagreement(the“TRA”),
·conflictsofinterestwithourlargeststockholders,
·thatwearenotyetsubjecttoallofthecorporategovernancerulesoftheNASDAQGlobalSelectmarket(the“NASDAQ”).
·thatElPolloLocoHoldings,Inc.,isaholdingcompanywithnooperationsthatreliesonitsoperatingsubsidiariestoprovideitwithfunds,
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