El Pollo Loco is heating up as it expands into new states and its sales soar

El Pollo Loco Sets Sights on National Growth

Photo by Allen J. Schaben/Los Angeles Times

El Pollo Loco, the Southern California-based chain famous for its flame-grilled chicken, is preparing to expand its presence across the United States after reporting unexpectedly robust growth last year.

Headquartered in Costa Mesa, the company recently entered Washington and New Mexico, and now plans to launch additional restaurants in other states. The popularity of its citrus-marinated chicken has led to lines forming outside new locations.

According to CEO Liz Williams, “Much like last year, most of the 18 to 20 new restaurants planned for 2026 will be outside California,” she shared during a Thursday earnings call.

Following the announcement of results that exceeded analysts’ predictions, El Pollo Loco’s stock surged nearly 17% on Friday after months of little movement.

This wave of expansion follows a recent rebranding effort called “Let’s Go Loco,” which includes a refreshed store design and the introduction of new menu items such as loaded quesadillas and horchata coffee beverages.

The brand’s momentum outside California is also growing. The first Washington location in Kent, which opened late last year, has had to reduce its hours to cope with overwhelming demand. Meanwhile, the New Mexico franchisee is actively seeking additional sites after a successful launch, Williams noted.

“California has always been our foundation and holds deep significance for our brand, but we believe El Pollo Loco’s future reaches far beyond,” Williams remarked during a previous earnings call, referencing new openings in Arizona, Colorado, Idaho, New Mexico, Texas, and Washington.

From Humble Beginnings to a Growing Chain

El Pollo Loco’s story began in the 1970s in Guasave, Sinaloa, Mexico, where Pancho Ochoa, a shoe salesman, started the business using his family’s signature citrus-marinated chicken recipe.

The brand expanded to over 80 locations in Mexico before opening its first U.S. restaurant in Westlake in 1980. In 1983, Denny’s Inc. acquired the American outlets and grew the chain, primarily within Southern California, before selling it to a private equity firm.

Over the years, El Pollo Loco has faced economic challenges and stiff competition from other fast-casual brands like Rubio’s, Chipotle, and Panera Bread, as reported by The Times in 2011.

Adapting to Changing Tastes

Recently, consumer preferences have shifted. Fast-casual chains such as Sweetgreen and Chipotle are now seen as occasional indulgences by customers mindful of rising prices.

El Pollo Loco’s combination of value and unique offerings sets it apart from traditional fast-food burger chains, appealing to budget-conscious diners.

Recent Performance and Future Plans

Since going public on Nasdaq in 2014, El Pollo Loco has continued to grow. The company reported that comparable restaurant sales for the fourth quarter increased by over 2% compared to the previous year.

Investors were encouraged by the company’s cost-saving strategies, which have helped boost profitability. One approach has been to open new restaurants in spaces already equipped for food service, such as repurposing a former Arby’s in Dallas, reducing the need for extensive renovations.

Menu innovation has also played a key role. The introduction of street corn and double-chicken burrito bowls, along with queso crunch double-chicken burrito bowls in late September, significantly contributed to the strong fourth-quarter results. Due to their popularity, both items have become permanent fixtures on the menu, Williams confirmed.

Looking ahead, El Pollo Loco plans to introduce chicken tenders and a chicken sandwich later this year, aiming to attract new customers with accessible options.

As of the end of last year, El Pollo Loco operated 503 restaurants, with most located in California.