Académique Documents
Professionnel Documents
Culture Documents
Presentation
January 2017
Forward-Looking Statements
Forward-Looking Statements
This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to
present facts or current conditions included in this presentation are forward-looking statements. Forward-looking statements give El Pollo Loco Holdings, Inc.’s (the
“Company”), current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can
identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,”
“estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this presentation are based on assumptions that the Company has made in light of its industry experience and
perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read
and consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of
which are beyond our control), and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect its actual operating and financial performance and cause its performance to differ materially from the performance
anticipated in the forward-looking statements. The Company believes these factors include, but are not limited to, those described under the sections “Forward-
Looking Statements,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in its prospectuses and periodic
reports, including in its most recent annual report on Form 10-K as it may be updated from time to time by quarterly reports on Form 10-Q. Should one or more of
these risks or uncertainties materialize, or should any of these assumptions prove incorrect, the Company’s actual operating and financial performance may vary in
material respects from the performance projected in these forward-looking statements.
Any forward-looking statement made by the Company in this presentation speaks only as of the date on which it is made. Factors or events that could cause the
Company’s actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The
Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise,
except as may be required by law.
Non-GAAP Financial Measures
This presentation contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial
performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP
in the statements of income, balance sheets or statements of cash flow of the company. The Company has provided a reconciliation of Adjusted EBITDA, a non-GAAP
financial measure, to net income in the Appendix to this presentation. Adjusted EBITDA is presented because management believes that such financial measure,
when viewed with the Company’s results of operations in accordance with GAAP and the reconciliation of Adjusted EBITDA to net income (or loss), provides
additional information to investors about certain material non-cash items and about unusual items that the Company does not expect to continue at the same level in
the future. Adjusted EBITDA is used by investors as a supplemental measure to evaluate the overall operating performance of companies in the Company’s industry,
and you should not consider it in isolation, or as a substitute for analysis of results as reported under GAAP. Our calculation of Adjusted EBITDA may not be
comparable to that reported by other companies. For additional information about our non-GAAP financial measures, see our filings with the Securities and Exchange
Commission.
JOBS Act
The Company is an “emerging growth company” within the meaning of the Jumpstart Our Business Startups Act. As a result, the Company is subject to reduced
public company reporting requirements.
We Are Unlike Anyone Else
Our Concept
– Citrus-marinated, fire-grilled chicken
– QSR+
– Prepared fresh daily in each restaurant
– Healthier alternatives on the go
restaurant sales
34
Company-Operated / Franchised
$1.9 million AUV; ~21.3% restaurant 201 259
contribution margin(2)
51% lunch / 49% dinner daypart mix Comparable Restaurant Sales Growth
El Pollo Loco
Our Talent
Our Grill Masters are experts in
the art of chicken
Our Environment
Warm & inviting customer
experience
~75% of the system new or
remodeled
A Value-Oriented, Faster Fast Casual Concept
QSR+
Providing Great Food at Great Value
$8.00
EPL Prices Between Taco Bell and Chipotle
$7.50
$7.00
$6.70 $6.70 $6.70
$6.50 Chicken Avocado Burrito
$5.99
$5.99 $5.99 $5.99 $5.99
$6.00
$5.50
$5.29
$4.99
$5.00
$4.00
$3.50
$3.00
Chicken Chicken Cantina Chicken Chicken Grande Chicken Chicken Chicken Grande Avocado Bowl
Cantina Fiesta Bowl Avocado Tostada Avocado Burrito Salad Bowl $5.99
Burrito Taco Salad Burrito Bowl
Source: El Pollo Loco Tier 2 Company Prices; Competitive Prices per Fishbowl Q3 2016 LA Competitive Pricing Report
.
Growth At The Top and Bottom Lines
• Line Layout
• Improve line efficiency
2014 • Simplified Builds
“Vision” Design
“Vision” Design
“Vision” Design
Our Growth Strategies
Existing Market
Long-term system unit
New Market
growth of 8-10% annually
Note: Unit potential based on management estimates and 2014 Buxton study.
Unit Economic Model
Restaurant
~20%
Contribution Margin(1)
(1) Restaurant contribution and restaurant contribution margin are neither required by, nor presented in accordance with, United States generally
accepted accounting principles ("GAAP"). Restaurant contribution is defined as company-operated restaurant revenue less company restaurant
expenses. Restaurant contribution margin is defined as restaurant contribution as a percentage of net company-operated restaurant revenue. Please
refer to the Appendix for the reconciliation schedule.
Financial Review
Historical Financial Summary
2011 2012 2013 2014 (52 2015 2016 Q3 2011 2012 2013 2014 2015 2016 Q3
wk basis) LTM 52 Week Basis LTM
Adjusted EBITDA(1) and Margin
65.5 66.5
($Millions)
61.9
.
(1) Excludes approximately $7.2 million of outstanding letters of credit as of September 28, 2016, which will not be reflected on the balance sheet unless drawn upon.
Long-Term Financial Goals
Note: These targets are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management,
and are based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and these variations may be material. For discussion of some of the important factors that could
cause these variations, please consult the “Forward-Looking Statements,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most
recent annual report on Form 10-K, as it may be updated from time to time by quarterly reports on Form 10-Q. Nothing in this presentation should be regarded as a representation by any person that these goals will be
achieved and the Company undertakes no duty to update its goals.
Investment Highlights
Thirty-Nine Thirteen
($Thousands) Fiscal Year Ended
Weeks Ended Weeks Ended
September December
2015 2014 2013 2012 2011
28, 2016 30, 2015
Company-operated restaurant revenue $268,984 $80,745 $332,040 $322,516 $294,327 $274,928 $255,361
Company restaurant expenses (211,982) (63,351) (260,125) (251,795) (232,408) (220,470) (207,726)
Restaurant contribution margin (%) 21.2% 21.5% 21.7% 21.9% 21.0% 19.8% 18.7%
Adjusted EBITDA Reconciliation
($Thousands) Thirty-Nine Thirteen Fiscal Year Ended
Weeks Ended Weeks Ended
Net Income (loss) $17,921 $5,366 $24,054 $42,463 ($16,873) ($7,865) ($32,471)
Non-GAAP adjustments:
(Benefit) provision for income taxes 11,930 4,576 20,857 (63,008) 1,401 2,027 1,579
Interest expense, net 2,441 672 3,707 18,062 36,334 38,890 37,715
Depreciation and amortization 11,796 3,468 13,092 11,538 10,213 9,530 9,615
Stock based compensation expense(1) 244 (69) 539 1,093 822 860 40
Adjusted EBITDA (52 Weeks) $51,272 $15,234 $65,464 $61,904 $54,619 $46,834 $39,536