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El Pollo Loco Holdings, Inc. (LOCO), Spanish for The Crazy Chicken, operates almost 500 restaurants, opproximately 40% of which sec company-owned and the rest are

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El Pollo Loco Holdings, Inc. (LOCO), Spanish for "The Crazy Chicken," operates almost 500 restaurants, opproximately 40% of which sec company-owned and the rest are franchices: El Pollo Loco combines the culinary traditions of Modipo and California, creating unique menu items such as their signature Chicken Avocado furrito. The company aims to improve profitability, in part, by simplifying operations to make it easier for employees and franchises to run the restaurants. Recent data (in millons) for coempany 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 segment. Round to two decimal places. c. Use the Dufont formula to determine the return on investment for each scgment. Round to one decimal place. d. Which of the following statement is true? expense in generating this revenue. experse in generating this revenue. in generating this revenue. 4. Both segments have relatively the same profit margin, investment turnovec, and return on investment because their operating costs ave similar. e. Why would EI Pollo Loco operate comparyr-owned restaurants? 1. Company-owned restaurants and stores help in establishing brand reputation, testing new preducts and improving operating efticienoies 2. Company-owned restaurants and stores help in establishing brand reputation and increasing prafat murgins. El Pollo Loco Holdings, Inc. (LOCO), Spanish for "The Crazy Chicken," operates almost 500 restaurants, opproximately 40% of which sec company-owned and the rest are franchices: El Pollo Loco combines the culinary traditions of Modipo and California, creating unique menu items such as their signature Chicken Avocado furrito. The company aims to improve profitability, in part, by simplifying operations to make it easier for employees and franchises to run the restaurants. Recent data (in millons) for coempany 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 segment. Round to two decimal places. c. Use the Dufont formula to determine the return on investment for each scgment. Round to one decimal place. d. Which of the following statement is true? expense in generating this revenue. experse in generating this revenue. in generating this revenue. 4. Both segments have relatively the same profit margin, investment turnovec, and return on investment because their operating costs ave similar. e. Why would EI Pollo Loco operate comparyr-owned restaurants? 1. Company-owned restaurants and stores help in establishing brand reputation, testing new preducts and improving operating efticienoies 2. Company-owned restaurants and stores help in establishing brand reputation and increasing prafat murgins

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