El Pollo Loco is expanding beyond Southern California as its grilled-chicken concept gains traction with cost-conscious consumers. The Costa Mesa-based chain plans to open 25 to 30 restaurants next year, with one-third in California and the rest elsewhere in the country, after adding roughly 20 locations this year to reach more than 500 U.S. restaurants. It opened locations in Washington and New Mexico last year and plans its first New York restaurant in Queens by mid-2027. Chief Executive Liz Williams said the brand offers food that is more elevated than traditional quick service while remaining more affordable than fast casual competitors. Third-quarter systemwide comparable restaurant sales rose 5%, marking the fourth consecutive increase, although shares fell 7% Friday after net income declined to $6.9 million from $7.4 million and came in below investor expectations. The stock remains up more than 47% since January. Rising food and labor costs, California's $20-an-hour minimum wage for fast-food employees, inflation and GLP-1 medications have pressured the industry. El Pollo Loco has responded with menu additions including quesadillas, tacos and salads, while maintaining bone-in grilled chicken as its core offering. Analysts and Restaurant Dive reporter Aneurin Canham-Clyne say the chain is well positioned in a market seeking fast-casual quality at fast-food prices, including outside California.