Biz News: Lawsuit accuses El Pollo Loco of false, misleading statements
Costa Mesa-based chicken chain El Pollo Loco was hit with a class-action lawsuit Monday that alleges company executives made false or misleading financial statements that had the effect of artificially inflating the company’s stock price, in violation of federal securities laws.
El Pollo Loco executives said in May that the chain’s same-store sales were growing at a pace of 3% to 5% compared with a year earlier.
But the suit, filed in U.S. District Court, alleges that same-store sales in the second quarter this year were 50% lower than El Pollo Loco had led investors to expect.
Because of the statements, the suit claims, El Pollo Loco’s share price was “artificially inflated” between May 15 and Aug. 13, the period covered by the complaint.
During the time, the chain’s stock price declined from $24.70 on May 15 to $18.36 on Aug. 13. However, the lawsuit claims that El Pollo Loco executives, including Chief Executive Stephen Sather, took advantage of “inflated” stock prices to cash out shares they held that were worth more than $132 million.
The complaint seeks to recover damages for investors who purchased El Pollo Loco common stock during the period covered by the suit.
El Pollo Loco declined to comment.
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California Pizza Kitchen opens ‘Next Chapter’ restaurant in Irvine
California Pizza Kitchen opened a new-look, new-menu “Next Chapter” restaurant this week at 5465 Alton Pkwy. in Irvine.
The restaurant features artwork of local sights such as the Great Park balloon and the Irvine Spectrum Center’s Giant Wheel.
It also offers new food items such as fire-grilled ribeye and salted caramel pudding, along with several new drinks. If a guest doesn’t like one of the new dishes, he or she can replace it with another menu item, the company says.
Other “Next Chapter” CPK restaurants in Orange County include locations in Newport Beach and Huntington Beach. The CPK at the Irvine Spectrum Center is scheduled for a remodel this fall.
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The Habit offers free burgers for donations to help hungry kids
Irvine-based The Habit Restaurants Inc. has launched a partnership with No Kid Hungry, a nonprofit that aims to end childhood hunger, in which guests of The Habit Burger Grill who make a donation to the organization through Sept. 30 will receive a certificate for a free Charburger with cheese.
The certificate will be good on their next visit to a Habit location through Oct. 14.
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The Hydration Room opens second location
The Hydration Room, an intravenous and injection therapy clinic that opened its first location in Newport Beach last year, has opened another in Laguna Beach.
The new clinic, at 31542 S. Coast Hwy., will feature 1,000 square feet of lounge space for patients to receive therapies and complimentary WiFi.
To celebrate the opening, the Hydration Room will host a community event with appetizers, wine and champagne from 5 to 7 p.m. Sept. 10.
The Hydration Room in Newport Beach, at 404 Westminster Ave., will offer a 20% discount on IV therapies and injections from 8 a.m. to 6 p.m. Sept. 10.
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Newport law firm one of ‘best places to work’
For the fourth consecutive year, Newmeyer & Dillion, a Newport Beach law firm, was recognized as one of the “best places to work” among medium-size companies in Orange County, according to a news release.
In a survey published in the Orange County Business Journal, Newmeyer & Dillion, at 895 Dove St., was recognized for its wellness program, charitable causes and flexible work hours.
“Client satisfaction is greatly enhanced when employees enjoy their work environment and pull together to provide the best service and results possible,” managing partner Jeff Dennis said in a statement. “We are proud of our more than 140 employees and honored that they find N&D such a great place to work.”
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Duke Bakery planning Costa Mesa location
Duke Bakery says it will open a location this winter in a shopping center at Bristol Street and Paularino Avenue in Costa Mesa.
The chain, which started in Singapore in October 2013, specializes in handcrafted Japanese, European and Taiwanese styles of bread using ingredients from Europe.
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Studio offers new classes
A Costa Mesa studio has expanded its offerings to include classes geared to teenagers and young adults.
The classes at Infinite You Meditation Studio, 234 E. 17th St., are designed to help teens focus, build confidence and learn empathy, according to a news release.
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Newport firm buys 2 hotels in Savannah, Ga.
MIG Real Estate, a Newport Beach-based real estate investment company, has acquired the Hilton Garden Inn and Hampton Inn & Suites hotels in the midtown area of Savannah, Ga.
MIG said it has acquired about 9 million square feet of property worth more than $1.5 billion throughout the United States since April 2009.