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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, approximately 40% of
Analyze El Pollo Loco Holdings, Inc. El Pollo Loco Holdings, Inc. (LOCO), Spanish for "The Crazy Chicken," operates almost 500 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 follows Operating income Invested assets Company-Operated 5374 Franchised 529 62 79 2 a. Determine the profit margin for each segment. Round to one decimal place. Profit margin Company Operated Franchised b. Determine the investment turnover for each segment. Round to two decimal places. Investment Turnover Compeny-Operated Franchised c. Use the DuPont formula to determine the return on investment for each segment. Round to one decimal place.
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