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

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Analyze El Pollo Loco Holdings, Inc. El Pollo Loco Holdings, Inc. (LOCO). Spanish for "The Crazy Chicken," operates almost 500 restaurants, approximataly 40% of which are compamy-owned and the rest are franchises. EI 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 follows: a. Determine the profit margin for each segment. Round to one decimal place. b. Detemmine the investment tumover for each segment. Round to two decimal places. c. Use the DuPont formula to detemmine the retum on imvestment 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 tumover, and lowest return on-investment because Ei Pollo Loco incurs no cost of goods sold or operating expense in generating this revenue. 2. The company-operated reataurants have the highest profit margin, investment turnoveci and recum on ifvestment 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 tumover and resurm on investment because El Pollo Loco incurs cost of goods sold and operating expense in generating this revenue. 4. Both segments have relatively the same profit margin, inveitment tumover, and return on invertment because their operating costs are similar. e. Why would El Pollo Loco operate company-owned rostaungte

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