Southern California’s El Pollo Loco, known for its flame-grilled chicken, is eyeing further national expansion after announcing surprisingly strong results for last year.

The Costa Mesa-based chain, which expanded to Washington and New Mexico last year, plans to open more locations in other states where customers have been lining up outside some of its new outlets for its citrus-grilled chicken dishes.

“Similar to last year, the vast majority of the 18 to 20 new openings in 2026 are expected to be outside of California,” the company’s chief executive, Liz Williams, said on an earnings call Thursday.

El Pollo Loco’s shares, which have been moving sideways for months, shot up nearly 17% Friday as its results were well above Wall Street’s expectations.

The expansion comes on the heels of a rebrand that company leadership has dubbed “Let’s Get Loco,” featuring a new store design and trials of new menu items like loaded quesadillas and horchata coffee drinks.

It also builds on the chain’s recent successes outside California.

Its first Washington store in Kent, which opened late last year, has had to cut back operating hours to manage long lines — an indicator of pent-up demand — while its New Mexico franchise partner, pleased with results, is searching for sites to open more stores, Williams said on the call.

“While California has been our home and holds a rich history for our brand, we know El Pollo Loco is destined for more,” Williams said on an earnings call last year when announcing new restaurants in Arizona, Colorado, New Mexico, Texas and Washington.

New locations are coming to El Paso, Albuquerque, Dallas and Denver, and the company is in talks with potential franchise partners in the Midwest and Northeast, spokesperson Brittney Shaffer told The Times in an email.

In California, more locations are planned in Sacramento, Redding, the Bay Area and Southern California.

Shaffer said the company decided it was the right time to enter new markets after spending the past two years strengthening its foundation with improved unit economics, enhanced hospitality, and a revitalized pipeline of culinary innovation.

El Pollo Loco traces its history to the 1970s in Guasave, Sinaloa, Mexico, where it was started by shoe salesman Pancho Ochoa using his family’s citrus-marinated chicken recipe.

The chain grew to more than 80 restaurants in Mexico and opened its first U.S. location in Westlake in 1980.

In 1983, Denny’s Inc. bought Ochoa’s American restaurants and expanded its network, though largely sticking to Southern California. The chain was later sold to a private equity group.

It has struggled during some economic downturns and weathered competition from fast-casual chains like Rubio’s, Chipotle and Panera Bread, The Times reported in 2011.

But the tides are turning. Fast-casual options like Sweetgreen and Chipotle have become “skippable splurges” for customers struggling with rising costs.

El Pollo Loco may be just the right combination of price and differentiation from fast-food burgers at a time when consumers are looking to save.

El Pollo Loco, which went public on Nasdaq in 2014, reported on Thursday that its fourth-quarter comparable restaurant sales rose more than 2% from a year earlier.

Wall Street was impressed by its ability to cut costs to boost its profits.

The company said one of its secrets was to open new outlets in spaces that were already set up to be restaurants.

It saved money while expanding by not having to build out spaces from scratch, said Williams, giving the example in Dallas where it took over a former Arby’s.

The chain’s street corn-and-double-chicken burrito bowls and queso crunch double-chicken burrito bowls, which were introduced in late September, were “instrumental” in driving fourth-quarter results, the company said.

“The popularity of these hearty, value-driven, high-quality offerings was so positive that we made the strategic decision to keep both bowls as permanent menu items,” Williams said on the Thursday earnings call.

Next on the menu to give new consumers an easy-to-grasp introduction to the company’s take on chicken: chicken tenders and a chicken sandwich are expected later this year.

El Pollo Loco had 503 locations — the majority in California — as of the end of last year.

As electric vehicle makers struggle to remain relevant, a new competitor is about to hit California’s roads.

It is stuffed to the sunroof with speakers and screens, and it’s a Sony.

Sony’s joint venture with Honda, Sony Honda Mobility, will launch a luxury EV brand called Afeela just in California this year.

The sedan is a brash bet that the two old-guard brands can succeed where others have struggled.

“We believe customers are looking for more than just a means of transportation” in their luxury EVs, said Sony Honda Mobility President and Chief Executive Shugo Yamaguchi in a statement to The Times. “They are looking for technology, safety, design, and a personalized experience.”

Afeela vehicles aim to do for driving what the Sony Walkman did for walking.

They have 28 speakers, wraparound screens, an AI assistant and an entertainment system for Karaoke or playing Sony PlayStation games.

The interior of the Afeela vehicle at Afeela Studio in Beverly Hills.

(Ronaldo Bolanos/Los Angeles Times)

Even as the end of government incentives for EVs has taken the air out of the market, Sony and Honda are hoping there are enough high-end Tesla buyers who may be looking to try something different.

Some EV enthusiasts have been alienated by Tesla Chief Executive Elon Musk’s affiliation with President Trump, who has strangled government support for green vehicles.

In West Los Angeles, a big Afeela ad above a Tesla dealership puts the EV leader squarely in its crosshairs.

“Get stares, not glares,” the billboard reads, with a glamour shot of a sleek, silver Afeela 1.

Tesla’s market share in California slipped to 48% last year from around 53% a year earlier.

Honda’s own EVs haven’t been wildly successful but their market share in California edged up to 3.8% last year compared to 1.8% a year earlier.

Afeela is entering the market at a time when federal support for EVs is low and public enthusiasm is faltering.

Major automakers including Ford, General Motors and Stellantis are paring back their EV ambitions. Lucid, a Newark, Calif.-based EV maker, has been struggling to turn a profit and recently laid off more than 300 employees.

Irvine-based luxury EV maker Rivian said last year that it was laying off more than 800 workers as it looked to cut costs.

Afeela has showrooms in San José, Beverly Hills and Century City. The company is manufacturing the cars at a Honda plant in Marysville, Ohio, and will make its first deliveries at the end of the year.

The Sony and Honda joint venture is in the midst of legal obstacles as it aims to build a solid reputation. Last August, the California New Car Dealers Assn. filed a lawsuit against American Honda Motor Company and Sony Honda Mobility, alleging that the companies violated franchise law by selling Afeela vehicles directly to consumers rather than through Honda dealerships.

Various display screens inside the Afeela vehicle at Afeela Studio, Beverly Hills.

(Ronaldo Bolanos/Los Angeles Times)

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For now, Californians can reserve an Afeela 1 for a $200 deposit. Selling only in the Golden State at first will allow the company to learn from an engaged customer base, said Yamaguchi.

“California is one of the most advanced markets for EV adoption, grid infrastructure, and new mobility technology,” he said. “It also represents a culture of innovation and creativity that aligns well with the Afeela vision.”

The company is planning to begin sales in Arizona next year.

The car comes in two trims, starting at $89,900 and $102,900. Both trims come with level two automation. When using a vehicle with level 2 automation, the driver must remain in control and attentive while the system assists with braking, acceleration or steering.

While some of Afeela’s tech may have a leg up on the competition, the brand will have to prove there’s healthy demand for it at that price, said Brian Moody, an auto industry analyst.

(Ronaldo Bolanos/Los Angeles Times)

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Sony and Honda are looking to capitalize on growing interest in self-driving technology and plan to eventually equip all their vehicles for full autonomy. The Afeela 1 comes with 18 cameras, nine radars, 12 ultrasonic sensors, and lidar, a laser-based radar that Waymo uses to power its autonomous taxis.

“You do have to pay attention and we definitely don’t want people to believe that they can just go to sleep behind the wheel,” said Raisu Williams, an Afeela engagement operations associate. “But we are aiming for that level four autonomy, where you don’t have to drive at all.”

While some of Afeela’s tech may have a leg up on the competition, the brand will have to prove there’s healthy demand for it at that price, said Brian Moody, an auto industry analyst.

“Tesla and its platforms are aging, and the Lucids and Afeelas of the world feel more modern, more futuristic,” Moody said. “We’ll see if the car can make the jump from early adopters and tech-type people to the mainstream.”

The AFEELA logo sits on top of a rear cameras of a Afeela vehicle.

(Ronaldo Bolanos/Los Angeles Times)

Afeela is hoping to have more success than Lucid with attracting a wide audience. Lucid laid off more people this year after laying off around 6,800 people in 2024 and hiring actor Timotheé Chalamet as a brand ambassador.

“I do think Afeela is in danger of heading down the same road as as Lucid,” Moody said. “If those cars can be successful in California, will that translate to success throughout the rest of the country and the world?”

Sony Honda Mobility got its start when the two founding companies formed a strategic alliance in 2022. The new company unveiled its first Afeela prototype in 2023 at the Consumer Electronics Show in Las Vegas.

AFEELA 1 unveiled during a Sony news conference at the Consumer Electronics Show in Las Vegas last year. ,

(Ian Maule/AFP via Getty Images)

Auto industry experts said Honda’s bet on Afeela is somewhat risky for the major automaker, but it could pay off. Because Sony and Honda each own 50% of Sony Honda Mobility, the companies reduce their liability by sharing risk, said auto analyst Kristin Shaw.

Honda has popular gas-powered models such as the Pilot and the CR-V to fall back on if their ambitions with Sony fall through.

“Honda’s bread and butter is still in their production vehicles,” Shaw said. “Honda is hedging its bets across the board, and Afeela is one way for them to explore what could happen.”