LOCO · CIK 0001606366
What El Pollo Loco Holdings, Inc. told the SEC could break it.
El Pollo Loco's defining exposure is geographic: its company-operated and franchised restaurants in greater Los Angeles generated about 71.9% of revenue in fiscal 2025, so adverse economic, demographic, or California-specific regulatory shifts in that one market would hit it hard. Its supply chain is similarly concentrated — chicken, its principal product, was about 9% of company-operated revenue in product cost and is exposed to feed and supply swings; its largest supplier was 21.1% of fiscal-2025 purchases; and a single distributor handles substantially all products to its company-operated restaurants. It also sources some produce and packaging from Mexico, Canada, and China, leaving input costs exposed to new or increased tariffs.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- greater Los Angeles area (71.9% of revenue)high
El Pollo Loco's company-operated and franchised restaurants in greater Los Angeles generated ~71.9% of revenue in fiscal 2025, so adverse economic, regulatory (e.g. California labor/immigration) or demographic shifts in that market would materially affect results.
“Our company-operated and franchised restaurants in the greater Los Angeles area generated, in the aggregate, approximately 71.9% of our revenue in fiscal 2025 and approximately 72% in fiscal 2024.”
SEC filing →As of 2026
Commodity & input dependence
- chicken (principal food product)medium
Chicken is El Pollo Loco's principal food product (~9% of company-operated revenue in product cost); material increases in chicken costs (driven by grain/feed, seasonality and supply) could adversely affect results.
“Our principal food product is chicken. In fiscal 2025, 2024, and 2023, the cost of chicken included in our product cost was approximately 9.0%, 9.3%, and 10.0%, respectively, of our revenue from company-operated restaurants. Material increases in the cost of chicken could materially and adversely affect our business, operating results, and financial condition.”
SEC filing →As of 2026
Regulatory & policy
- tariffs on imported produce & packaging (Mexico/Canada/China)medium
Some produce, packaging and other items are procured from Mexico, Canada and China; new or increased import duties, tariffs (e.g. Section 122 15% tariffs) or trade restrictions could raise El Pollo Loco's input costs.
“Some of our produce, packaging and other items are procured from outside of the U.S. (including from Mexico, Canada and China), and any new or increased import duties, tariffs, trade sanctions or taxes, or other changes in U.S. tra”
Supplier concentration
- largest supplier = 21.1% of purchases; single distributor for substantially all productsmedium
El Pollo Loco's largest supplier accounted for 21.1% of fiscal-2025 purchases, it contracts with a limited number of suppliers for chicken and food, and a single company distributes substantially all products to its company-operated restaurants — concentrating both sourcing and distribution.
“Purchases from the Company's largest supplier totaled 21.1 % of the Company's purchases for fiscal 2025, 24.1 % for fiscal 2024 and 26.6 % for fiscal 2023 with no amounts payable at December 31, 2025 or December”
SEC filing →As of 2026
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