Suhail Capital
Hedge fund manager, long/short equity, event-driven

El Pollo Loco: PE 'Bust-Out', 20+ Years Of Failed Domestic Expansion, Pre-IPO Window Dressing Make An Ideal Short

source: Datosfreak

Contents

I. Background & Introduction

II. The Next Chipotle? Not even Close!

III. A Long History of Failed Domestic Expansion

IV. Dissecting El Pollo Loco's Pre-IPO Comparable Same-Store Sales

V. El Pollo Loco's Ownership History

VI. Valuation: What's it worth?

Summary

I. Background & Introduction

source: El Pollo Loco website

Juan Francisco Ochoa started the restaurant in Guasave, Sinaloa, Mexico, in 1975. After expanding in Mexico the first US location opened in 1980 in Los Angeles, California. This is when the journey of the publicly-listed El Pollo Loco (NASDAQ:LOCO) we see trading as "LOCO" today began. After achieving notable success in the LA market, in 1983 the US restaurants in the chain were acquired by Denny's

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