Report: El Pollo Loco for sale; equity firms cited as suitors

IRVINE, CALIF. -- El Pollo Loco Inc., operator or franchisor of 320-plus grilled-chicken restaurants that recently have yielded slumping net income, is for sale by owner American Securities Capital Partners LLC, according to The Daily Deal news organization.

Asked about the report, Julie Weeks, spokeswoman for Irvine-based El Polio Loco, said it "does not comment on rumors or market speculation." A call to New York-based American Securities Capital Partners for comment about the chain's status was not returned by presstime.

The Daily Deal cited as possible buyers Apax Partners, Bruckmann Rosser, Sherrill & Co. LLC, Centre Partners Management LLC, Charlesbank Capital Partners LLC, Grotech Capital Group and Palladium Equity Partners LLC, all of which currently have foodservice holdings.

El Pollo Loco reported systemwide sales growth of 7.9 percent to $426.9 million for its fiscal year ended December versus growth of 8.7 percent for 2003. The company's base of restaurants has grown by 2.6 percent in each of the past two years, primarily from additional franchised units.

However, the company reported that its net income decreased by more than 49 percent last year, to $3.7 million, after having risen to $7.4 million in 2003. Earnings for the current year's first quarter, ended March 31, were off 43.5 percent to $903,000 versus last year's first quarter.

Management said reduced profits for the latest quarter resulted from higher food and advertising costs, greater depreciation and amortization, and increased general and administrative spending associated with the Sarbanes-Oxley Act of 2002.

American Securities Capital Partners bought El Pollo Loco in 1999 from what is now Denny's Corp. for $128 million.

                                                 FOR WEEK ENDED
                                    TICKER          7/8/2005
EXCH   COMPANY                      SYMBOL   HIGH     LOW    CLOSE
       Rest.-NRN Stock Index
NAS    AFC Enterprises Inc.         AFCE     13.57   12.97    13.54
NAS    Applebee's Int'l Inc.        APPB     26.29   24.70    25.21
NAS    Ark Restaurants Corp.        ARKR     28.10   26.10    27.73
NAS    Back Yard Burgers Inc.       BYBI      5.60    5.25     5.47
NAS    Benihana Inc.                BNHN     14.78   14.10    14.55
NAS    BJ's Restaurants Inc.        BJRI     20.89   20.00    20.63
NAS    Bob Evans Farms Inc.         BOBE     23.66   22.10    22.85
NYS    Brinker International Inc.   EAT      40.35   39.14    40.19
NAS    Buca Inc.                    BUCAE     5.28    4.93     5.04
NAS    Buffalo Wild Wings Inc.      BWLD     30.37   27.60    28.47
NAS    California Pizza
         Kitchen Inc.               CPKI     27.59   25.50    27.32
NAS    CBRL Group Inc.              CBRL     39.72   37.75    39.30
NYS    CEC Entertainment Inc.       CEC      42.39   41.55    42.20
NAS    Champps Entertainment Inc.   CMPP      7.94    7.30     7.64
NAS    Checkers Drive-In Rest.      CHKR     13.53   12.27    12.93
NAS    Cheesecake Factory Inc.      CAKE     34.74   33.14    33.80
NYS    CKE Restaurants Inc.         CKR      13.76   12.63    13.43
NAS    Cost Inc.                    COST      6.99    6.66     6.87
NYS    Darden Restaurants Inc.      DRI      33.05   31.30    32.08
NYS    Dave & Buster's Inc.         DAB      18.52   17.87    18.14
NAS    Denny's Corp.                DENN      5.69    5.25     5.40
NAS    Diedrich Coffee Inc.         DDRX      5.08    4.64     5.08
NYS    Domino's Pizza Inc.          DPZ      23.01   21.70    22.82
OTC    Elephant & Castle Group      PUBSF     0.53    0.42     0.42
NAS    Famous Dave's of America     DAVE     10.00    9.39     9.97
ASE    Flanigan's Ents. Inc.        BDL       9.50    9.28     9.36
NAS    Fox & Hound Rest. Group      FOXX     12.90   12.15    12.73
OTC    Fresh Choice Inc.            SALDQ     0.00    0.00     0.00
ASE    Friendly Ice Cream Corp.     FRN      11.30   10.91    11.30
ASE    Frisch's Restaurants Inc.    FRS      25.68   25.15    25.15
NAS    Good Times Rest. Inc.        GTIM      5.10    4.50     4.92
NAS    Granite City Food &
         Brewery                    GCFB      4.94    4.35     4.50
NAS    Grill Concepts Inc.          GRIL      3.91    3.72     3.73
NAS    Host America Corp.           CAFE      3.15    2.80     3.05
NYS    IHOP Corp.                   IHP      43.51   40.39    41.73
ASE    J. Alexander's Corp.         JAX       9.74    8.95     9.21
NYS    Jack in the Box Inc.         JBX      38.25   36.82    38.10
NYS    Krispy Kreme Doughnuts       KKD       7.14    6.50   710.00
NYS    Landrys Restaurants Inc.     LNY      30.40   29.46    30.15
NAS    Lone Star Steakhouse         STAR     30.45   28.51    29.17
NYS    Luby's Inc.                  LUB      13.55   11.79    12.97
NAS    Main Street Rest.
         Group Inc.                 MAIN      3.74    3.31     3.72
NAS    Max & Erma's Rest. Inc.      MAXE     14.84   14.60    14.61
NAS    McCormick & Schmick's        MSSR     16.71   16.00    16.71
NYS    McDonald's Corp.             MCD      28.87   27.36    28.65
ASE    Meritage Hospitality Group   MHG       5.28    5.18     5.25
NAS    Mexican Restaurants Inc.     CASA      9.95    9.51     9.51
OTC    Morgan's Foods Inc.          MRFD      2.10    1.60     2.10
NAS    Nathan's Famous Inc.         NATH      9.60    8.55     9.40
OTC    New World Rest. Group        NWRG      2.00    2.00     2.00
NAS    O'Charley's Inc.             CHUX     18.00   17.11    17.99
NYS    Outback Steakhouse Inc.      OSI      44.70   43.40    43.88
NAS    P.F. Chang's China Bistro    PFCB     60.26   57.12    60.05
NAS    Panera Bread Co.             PNRA     61.41   59.59    60.42
NAS    Papa John's Int'l. Inc.      PZZA     41.56   39.22    41.56
NAS    Peet's Coffee & Tea Inc.     PEET     35.36   34.03    35.29
NAS    Pizza Inn Inc.               PZZI      2.69    2.50     2.55
NAS    Quality Dining Inc.          QDIN      3.18    3.18     3.18
NAS    Rare Hospitality
         Int'l. Inc.                RARE     30.99   28.88    30.27
NAS    Red Robin Gourmet Burgers    RRGB     62.40   57.81    58.49
NAS    Rubio's Restaurants Inc.     FLED     10.13    9.55     9.55
NYS    Ruby Tuesday Inc.            RI       26.80   24.83    25.15
NAS    Ryan's Rest. Group Inc.      RYAN     14.04   13.37    13.60
OTC    Schlotzsky's Inc.            BUNZQ     0.02    0.02     0.02
NAS    Smith & Wollensky Rest.      SWRG      6.20    5.80     6.13
NAS    Sonic Corp.                  SONC     31.46   30.63    31.21
NAS    Star Buffet Inc.             STRZ      8.79    7.74     8.50
NAS    Starbucks Corp.              SBUX     52.29   49.28    51.78
NYS    Steak n Shake Co.            SNS      20.85   18.51    20.77
NAS    Texas Roadhouse Inc.         TXRH     36.59   35.00    36.06
NYS    Triarc Companies Inc.        TRY      16.14   15.65    15.68
OTC    Ultimate Franchise Systems   UFSY      0.07    0.07     0.07
NYS    Wendy's International Inc.   WEN      47.94   45.60    47.45
NYS    Worldwide Rest. Concepts     SZ        6.56    6.46     6.46
NYS    YUM! Brands Inc.             YUM      52.00   50.10    51.87

                                                               EAR-
                                     NET     PERCENT           NINGS/
                                    CHANGE   CHANGE            SHARE
                                      IN       IN       P/E    LAST
EXCH   COMPANY                       WEEK     WEEK     RATIO   12 MOS.
       Rest.-NRN Stock Index
NAS    AFC Enterprises Inc.           0.44      3.36       2     5.64
NAS    Applebee's Int'l Inc.         -1.06     -4.04      19     1.36
NAS    Ark Restaurants Corp.         -0.42     -1.49      12     2.25
NAS    Back Yard Burgers Inc.         0.00      0.00      32     0.17
NAS    Benihana Inc.                  0.22      1.54      15     1.00
NAS    BJ's Restaurants Inc.          0.15      0.73      76     0.27
NAS    Bob Evans Farms Inc.          -0.62     -2.64      16     1.42
NYS    Brinker International Inc.     0.21      0.53      22     1.86
NAS    Buca Inc.                     -0.21     -4.00      --    -1.69
NAS    Buffalo Wild Wings Inc.       -1.90     -6.26      33     0.85
NAS    California Pizza
         Kitchen Inc.                 0.77      2.90      29     0.93
NAS    CBRL Group Inc.                0.17      0.43      17     2.36
NYS    CEC Entertainment Inc.         0.28      0.67      19     2.19
NAS    Champps Entertainment Inc.     0.22      2.96      --     0.06
NAS    Checkers Drive-In Rest.       -0.38     -2.85      22     0.59
NAS    Cheesecake Factory Inc.       -0.79     -2.28      39     0.87
NYS    CKE Restaurants Inc.          -0.44     -3.17      37     0.36
NAS    Cost Inc.                     -0.02     -0.29      --    -0.48
NYS    Darden Restaurants Inc.       -0.95     -2.88      20     1.58
NYS    Dave & Buster's Inc.          -0.23     -1.25      20     0.91
NAS    Denny's Corp.                  0.16      3.05      --    -0.39
NAS    Diedrich Coffee Inc.           0.05      0.99       2     2.92
NYS    Domino's Pizza Inc.            0.79      3.59      45     0.51
OTC    Elephant & Castle Group       -0.08    -16.00      --     0.00
NAS    Famous Dave's of America       0.09      0.91      33     0.30
ASE    Flanigan's Ents. Inc.         -0.04     -0.43      35     0.27
NAS    Fox & Hound Rest. Group        0.28      2.25      47     0.27
OTC    Fresh Choice Inc.              0.00      0.00      --     0.00
ASE    Friendly Ice Cream Corp.       0.50      4.63      --    -0.18
ASE    Frisch's Restaurants Inc.      0.00      0.00       9     2.79
NAS    Good Times Rest. Inc.          0.43      9.58      29     0.17
NAS    Granite City Food &
         Brewery                     -0.05     -1.10      --    -0.13
NAS    Grill Concepts Inc.           -0.01     -0.21      93     0.04
NAS    Host America Corp.            -0.02     -0.59      --    -1.26
NYS    IHOP Corp.                    -1.56     -3.60      26     1.61
ASE    J. Alexander's Corp.           0.31      3.48      13     0.72
NYS    Jack in the Box Inc.           0.71      1.90      17     2.28
NYS    Krispy Kreme Doughnuts        17.00      2.45      36    20.00
NYS    Landrys Restaurants Inc.       0.32      1.07      13     2.29
NAS    Lone Star Steakhouse          -0.91     -3.03      33     0.89
NYS    Luby's Inc.                    1.11      9.36      65     0.20
NAS    Main Street Rest.
         Group Inc.                   0.16      4.49      41     0.09
NAS    Max & Erma's Rest. Inc.        0.01      0.07      --    -0.24
NAS    McCormick & Schmick's          0.66      4.11      54     0.31
NYS    McDonald's Corp.               0.71      2.54      15     1.95
ASE    Meritage Hospitality Group    -0.03     -0.57      --    -0.43
NAS    Mexican Restaurants Inc.      -0.44     -4.42      19     0.51
OTC    Morgan's Foods Inc.            0.50     31.25      --    -0.74
NAS    Nathan's Famous Inc.           0.12      1.29      21     0.45
OTC    New World Rest. Group          0.00      0.00      --    -1.93
NAS    O'Charley's Inc.               0.35      1.98      16     1.13
NYS    Outback Steakhouse Inc.       -1.05     -2.34      21     2.06
NAS    P.F. Chang's China Bistro      0.83      1.40      43     1.40
NAS    Panera Bread Co.              -1.08     -1.76      44     1.38
NAS    Papa John's Int'l. Inc.        1.63      4.08      29     1.44
NAS    Peet's Coffee & Tea Inc.       1.29      3.79      53     0.67
NAS    Pizza Inn Inc.                 0.05      2.00      28     0.09
NAS    Quality Dining Inc.            0.00      0.00      --     0.00
NAS    Rare Hospitality
         Int'l. Inc.                 -0.15     -0.49      22     1.36
NAS    Red Robin Gourmet Burgers     -2.96     -4.82      37     1.59
NAS    Rubio's Restaurants Inc.      -0.35     -3.54      31     0.31
NYS    Ruby Tuesday Inc.             -0.91     -3.49      16     1.62
NAS    Ryan's Rest. Group Inc.       -0.36     -2.58      13     1.03
OTC    Schlotzsky's Inc.              0.00      0.00      --     1.00
NAS    Smith & Wollensky Rest.        0.12      2.00      --    -0.14
NAS    Sonic Corp.                    0.18      0.58      28     1.11
NAS    Star Buffet Inc.               0.76      9.82      --     0.02
NAS    Starbucks Corp.                0.73      1.43      48     1.08
NYS    Steak n Shake Co.              2.23     12.03      20     1.04
NAS    Texas Roadhouse Inc.           0.80      2.27      90     0.40
NYS    Triarc Companies Inc.         -0.38     -2.37      71     0.22
OTC    Ultimate Franchise Systems     0.00      0.00      --     0.00
NYS    Wendy's International Inc.    -0.19     -0.40      --     0.45
NYS    Worldwide Rest. Concepts      -0.05     -0.77      --    -0.76
NYS    YUM! Brands Inc.               0.39      0.76      21     2.49

                                            52-WEEK     MARKET
                                                        CAPITAL
EXCH   COMPANY                         HIGH     LOW    (1,000'S)
       Rest.-NRN Stock Index
NAS    AFC Enterprises Inc.            28.82   12.90      396828
NAS    Applebee's Int'l Inc.           29.19   22.26     2044055
NAS    Ark Restaurants Corp.           43.48   20.76       95864
NAS    Back Yard Burgers Inc.           7.75    4.31       26210
NAS    Benihana Inc.                   16.60   11.62      133331
NAS    BJ's Restaurants Inc.           22.61   13.10      465951
NAS    Bob Evans Farms Inc.            28.54   19.91      808024
NYS    Brinker International Inc.      42.40   28.92     3570070
NAS    Buca Inc.                        7.44    3.91      101647
NAS    Buffalo Wild Wings Inc.         41.70   26.07      240457
NAS    California Pizza
         Kitchen Inc.                  29.30   17.09      527333
NAS    CBRL Group Inc.                 44.60   30.00     1868664
NYS    CEC Entertainment Inc.          42.44   29.55     1485474
NAS    Champps Entertainment Inc.       9.80    6.39       98302
NAS    Checkers Drive-In Rest.         14.98    9.75      144017
NAS    Cheesecake Factory Inc.         37.36   25.43     2636400
NYS    CKE Restaurants Inc.            17.15   10.40      792475
NAS    Cost Inc.                        7.72    4.26      216359
NYS    Darden Restaurants Inc.         33.68   19.30     5030241
NYS    Dave & Buster's Inc.            20.74   15.05      254355
NAS    Denny's Corp.                    5.80    2.50      489240
NAS    Diedrich Coffee Inc.             6.49    2.75       26780
NYS    Domino's Pizza Inc.             23.11   12.40     1479653
OTC    Elephant & Castle Group          0.95    0.28        2417
NAS    Famous Dave's of America        15.00    6.52      112783
ASE    Flanigan's Ents. Inc.            9.50    6.20       17665
NAS    Fox & Hound Rest. Group         13.00    8.22         127
OTC    Fresh Choice Inc.                0.95    0.00           6
ASE    Friendly Ice Cream Corp.        12.97    7.61       87491
ASE    Frisch's Restaurants Inc.       28.00   22.50      127156
NAS    Good Times Rest. Inc.            6.75    2.90       11585
NAS    Granite City Food &
         Brewery                        5.25    3.17       52286
NAS    Grill Concepts Inc.              4.23    1.45       21075
NAS    Host America Corp.               5.98    2.69       14679
NYS    IHOP Corp.                      50.50   34.51      836227
ASE    J. Alexander's Corp.             9.74    6.38       59605
NYS    Jack in the Box Inc.            41.95   27.06     1395367
NYS    Krispy Kreme Doughnuts          19.24    5.05      438449
NYS    Landrys Restaurants Inc.        33.00   24.75      674844
NAS    Lone Star Steakhouse            31.98   20.70      599998
NYS    Luby's Inc.                     13.55    5.75      293533
NAS    Main Street Rest.
         Group Inc.                     3.95    1.26       63123
NAS    Max & Erma's Rest. Inc.         26.00   12.35       37092
NAS    McCormick & Schmick's           18.11    9.60      230297
NYS    McDonald's Corp.                34.56   25.64    36311868
ASE    Meritage Hospitality Group       5.77    4.80       27922
NAS    Mexican Restaurants Inc.        10.50    6.25       32476
OTC    Morgan's Foods Inc.              2.35    0.60        5702
NAS    Nathan's Famous Inc.             9.60    5.61       51281
OTC    New World Rest. Group            6.00    1.50       19695
NAS    O'Charley's Inc.                22.90   14.29      398407
NYS    Outback Steakhouse Inc.         47.75   37.34     3243390
NAS    P.F. Chang's China Bistro       62.30   40.57     1574913
NAS    Panera Bread Co.                66.49   32.35     1865171
NAS    Papa John's Int'l. Inc.         41.56   27.76      688562
NAS    Peet's Coffee & Tea Inc.        35.36   21.36      481603
NAS    Pizza Inn Inc.                   3.26    2.25       25731
NAS    Quality Dining Inc.              3.64    2.67       36880
NAS    Rare Hospitality
         Int'l. Inc.                   32.59   24.40     1035037
NAS    Red Robin Gourmet Burgers       62.91   26.87      946316
NAS    Rubio's Restaurants Inc.        13.56    7.90       89472
NYS    Ruby Tuesday Inc.               29.71   22.13     1621629
NAS    Ryan's Rest. Group Inc.         16.69   12.18      570997
OTC    Schlotzsky's Inc.                2.63    0.01         147
NAS    Smith & Wollensky Rest.          6.75    4.17       57502
NAS    Sonic Corp.                     36.04   20.76     1885415
NAS    Star Buffet Inc.                 9.24    5.22       25081
NAS    Starbucks Corp.                 64.26   42.05    20179598
NYS    Steak n Shake Co.               20.85   16.22      574043
NAS    Texas Roadhouse Inc.            36.59   20.38     1212885
NYS    Triarc Companies Inc.           16.66    9.51     1010786
OTC    Ultimate Franchise Systems       0.87    0.05        1038
NYS    Wendy's International Inc.      48.50   31.74     5455612
NYS    Worldwide Rest. Concepts         6.61    2.91      178693
NYS    YUM! Brands Inc.                53.79   35.75    15028139

COPYRIGHT 2005 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2005 Gale Group