EL POLLO LOCO HOLDINGS, INC. (NASDAQ:LOCO) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Appointment of Miguel Lozano as Chief Operating Officer

On March 26, 2019, the registrant (“we”, “us”, or the “Company”) announced that effective April 1, 2019, Miguel Lozano, age 55, has been appointed Chief Operating Officer of the Company. Mr. Lozano will report to Bernard Acoca, our Chief Executive Officer and President, and assumes full leadership of our operations, including Company operations, franchise operations, operations services, field training, and restaurant openings, and will be responsible for formulating organizational strategy to drive brand growth and profitability.

Before joining the Company, Mr. Lozano, spent twenty-three years at Starbucks Corporation (“Starbucks”) in various capacities, most recently as Regional Vice President of Operations for Los Angeles, Central, and Coastal California since 2011. Prior to that he served as Director of Operations, from 1996 to 2011, leading stores in the Orange County, California area, as well as Director of Business Systems Transformation from 2005 to 2009. Mr. Lozano also held positions with Carlton Restaurants Worldwide and began his career as a Restaurant General Manager and Area Leader with the Company. Mr. Lozano’s leadership skills and extensive knowledge of the restaurant industry will be instrumental in his role as Chief Operating Officer as the Company simplifies and transforms its operating platform.

In connection with Mr. Lozano’s hiring, the Company entered into an employment agreement with Mr. Lozano, which sets forth the terms and conditions under which he will serve as the Company’s Chief Operating Officer. The term of the agreement will commence on April 1, 2019 (the “Effective Date”), and will expire on the one-year anniversary of the Effective Date, provided that the term will automatically extend for an additional one-year period on each expiration date thereof (with non-renewal thereof by the Company treated the same as termination with cause). Mr. Lozano will receive an initial annual base salary of $325,000, a target annual bonus equal to 75% of base salary and, starting in 2020, an annual discretionary equity grant, as determined by the Board of Directors. During the term of the employment agreement Mr. Lozano will be entitled to employee benefits on the same basis as those generally available to other senior executives. Mr. Lozano will also be entitled to at least four weeks of vacation per year and an automobile allowance substantially similar to that provided to other similarly situated senior executives. The employment agreement provides that in connection with his hiring, Mr. Lozano will receive a one-time sign-on grant of approximately $100,000 worth of time-vested options (vesting ratably over four years), and approximately $250,000 worth of time-vested restricted stock units or restricted shares (vesting ratably over four years). Mr. Lozano will also be entitled to a one-time lump sum payment equal to $20,000, provided that he is obligated to repay such amount if his employment is terminated without good reason or for cause, as such terms are defined in the employment agreement, within one year of the Effective Date. The employment agreement provides that in the event that Mr. Lozano’s employment is terminated due to death or disability he will be entitled to a prorated annual bonus for the year of termination based on achievement of performance goals. The employment agreement also provides that in the event that Mr. Lozano’s employment is terminated without cause or for good reason, then he will be entitled to receive a prorated annual bonus for the year of termination based on actual performance and continuation of payment of base salary for twelve (12) months, subject, in each case, to the execution of a general release and compliance with applicable restrictive covenants. The employment agreement contains a one-year post-termination confidentiality covenant and a non-interference covenant which is applicable to the Company’s relationships with suppliers, customers and partners. The employment agreement also contains a one-year post-termination, non-solicitation covenant applicable to Company employees.

There is no arrangement or understanding between Mr. Lozano and any other person(s) to which he was selected as an officer. There are no family relationships between Mr. Lozano and any other director, executive officer, or person nominated or chosen by us to become a director or executive officer and he has no direct or indirect material interest in any transaction required to be disclosed to Item 404(a) of Regulation S-K.

The foregoing description of the employment agreement with Mr. Lozano is qualified in its entirety by the applicable documents. The Company’s March 26, 2019, press release announcing the appointment of Mr. Lozano is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d)Exhibits

El Pollo Loco Holdings, Inc. Exhibit
EX-2.99.1 2 a8-kex991.htm EXHIBIT 2.99.1 Exhibit Exhibit 99.1El Pollo Loco Names Miguel Lozano as New Chief Operating OfficerFormer Starbucks Executive Completes New Executive Team Leading El Pollo Loco’s TransformationCOSTA MESA,…
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About EL POLLO LOCO HOLDINGS, INC. (NASDAQ:LOCO)

El Pollo Loco Holdings, Inc. is a restaurant concept that offers fire-grilling citrus-marinated chicken. The Company operates in the limited service restaurant segment. The Company’s activities are conducted through its subsidiary, El Pollo Loco, Inc. (EPL), which develops, franchises, licenses and operates quick-service restaurants under the name El Pollo Loco. The restaurants are located in California, Arizona, Nevada, Texas and Utah. The Company offers flame-grilled chicken in a range of contemporary Mexican-influenced entrees, including specialty chicken burritos, chicken quesadillas, chicken tortilla soup, Pollo Bowls and Pollo Salads. The Company operates approximately 190 and franchises over 250 El Pollo Loco restaurants. In addition, the Company licenses approximately two restaurants in the Philippines. The Company serves individual and family-sized chicken meals, a range of Mexican-inspired entrees and sides. It offers alternative proteins, such as shrimp, carnitas and beef.