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Analyze EI Pollo Loco Holdings, Inc. El Pollo Loco Holdings, Inc. (LOCO), Spanish for The Crazy Chicken. operates almost 500 restavrants, approximately 40% of which

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Analyze EI Pollo Loco Holdings, Inc. El Pollo Loco Holdings, Inc. (LOCO), Spanish for "The Crazy Chicken." operates almost 500 restavrants, approximately 40% of which are compary-owned and the rest are franchises, El Pollo Loco combines the culinary traditions of Mexico and Californla, creating unique menu items soch as thelr signature Chicken Avocado Burrito The company aims to improve profitability, in Dart, by simplifylng operations to make it easier for emplovees, and franchisees to run the restaurants. Racent data (in millions) for company-operated and franchised restaurants are as follows: a. Determine the profit margin for each segment. Round to one decimal place. b. Determine the investment turnover for each segnent. Round to two decimol places. c. Use the DuPont formula co determine the retum on irvesunent for each segment. Round to one decimal place. Return on c. Use the Dupont formula to determine the return on investment for each segment. Round to one decimal pface. d. Which of the followino statement is true? 1. The franchised restaurants have the lowest profit margin, highest investment turnover, and lowest return on investment because El Pollo Loco incurs no cost of goods sold or operating expense in generating this revenue. 2. The company-operated restaurants have the highest profit margin, investment tumover, and return on investment because El Polio Loco incurs no cost of goods sold or operating expense in generating this revence. 3. The company-operated restaurants have the lowest profit margin, investment turnoveri and retirn on investment because Ei pollo Laco incurs cost of goods solid and operating expense in penerating this revenue. 4. Both segments have relatively the same profit margin, Investment tumover, anid retum on investment because their ogerating coits are similar. e. Why would E Pollo Loco operate company-owned restaurants

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