Todorov's Theory outlines five stages of narrative structure according to Tzvetan Todorov: 1) Equilibrium, where the main character's life is normal and balanced; 2) Disruption, where a problem disrupts the main character's equilibrium; 3) Recognition, where the main character realizes their situation has changed for the worse; 4) Repair, where the main character works to repair the situation and restore equilibrium; 5) New Equilibrium, where the character gains a new equilibrium through their experience and their life is now better than before. The theory is demonstrated through a summary of the plot of the book "Holes" by Louis Sachar.