analyze El Pollo Loco holdings, Inc.

Analyze El Pollo Loco Holdings, Inc. El Pollo Loco Holdings, Inc. (LOCO), Spanish for "The Crazy Chicken, operates almost S00 restaurants, approximately 40% of which are company-owned and the rest are franchises. El Pollo Loco combines the culinary traditions of Mexico and California, creating unique menu items such as their signature Chicken Avocado Burrito. The company aims to improve profitability, in part, by simplifying operations to make it easier for employees and franchisees to run the restaurants. Recent data (in millions) for company-operated and franchised restaurants are as followsi a. Determine the profit margin for each segment. Round to one decimal place. b. Determine the investment turnover for each segment. Round to two decimal places. c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place. d. Which of the following 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 turnover, and return on investment because El Pollo Loco incurs no cost of goods sold or operating expense in generating this revenue. 3. The company-operated restaurants have the lowest profit margin, investment turnover, and return on investment because El Pollo Loco incurs cos of goods sold and operating expense in generating this revenue. 4. Both segments have relatively the same profit margin, investment turnover, and return on investment because their operating costs are similar. e. Why would Ei Pollo Loco operate company-owned restaurants