Portillo's Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw resilient sales growth of 5.6% year-over-year, driven by new units, despite a 1.2% same-restaurant sales decline due to lapping promotions and cannibalization. Strategic resets in operations, supply chain, and development are expected to yield $10M-$15M in annualized savings and support future growth.
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Q1 revenue grew 3.5% year-over-year to $182.6 million, driven by new restaurants, while same-restaurant sales dipped 0.1% as average check fell but transactions rose. Margins were pressured by commodity and labor costs, and the company reiterated its fiscal year guidance amid leadership transition and ongoing strategic review.
Fiscal Year 2025
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Q4 2025 saw modest revenue growth and strong core market performance, but Texas expansion remained a headwind. The company reset its development strategy, improved value perception, and expects flat Adjusted EBITDA in 2026 with continued focus on operational excellence and debt reduction.
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Q3 revenue rose 1.8% year-over-year to $181.4M, but same-store sales fell 0.8% and margins contracted due to commodity and labor inflation. A strategic reset is underway, slowing new openings and focusing on operational execution, with 2025 EBITDA guidance at $90M-$94M.
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Management is prioritizing traffic growth and unit economics, reducing new openings, and simplifying operations to reset the business. New marketing leadership and targeted local efforts aim to boost brand awareness, while cost controls and revised development plans target improved returns and free cash flow in 2026.
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Second quarter revenue grew 3.6% year-over-year, but new Texas restaurants underperformed, leading to a revised full-year revenue growth outlook of 5%-7%. Restaurant-level adjusted EBITDA margin fell to 23.6%, with commodity and labor inflation expected to pressure margins in the second half.
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Q1 revenue grew 6.4% to $176.4M, with 1.8% same restaurant sales growth and strong results from loyalty and advertising initiatives. New units underperformed expectations, but guidance for comp sales was raised to 1-3%. Adjusted EBITDA margin declined to 20.8%.
Fiscal Year 2024
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Q4 revenue grew 6.1% year-over-year excluding the extra week, with same restaurant sales up 0.4%. Operational focus includes kiosk expansion, a new loyalty program, and new restaurant formats, while 2025 guidance anticipates modest comp growth and continued margin discipline.
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Revenue grew 6.9% year-over-year to $178.3M, driven by new openings, but same restaurant sales fell 0.9% amid industry discounting. Margins remained strong at 23.5% as cost discipline offset headwinds. Expansion in Texas and Sunbelt, kiosk rollout, and new smaller-format builds support future growth.
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The discussion highlighted strong unit economics, a focus on craveable food, and a robust expansion strategy targeting the Sun Belt. Operational innovation includes smaller, more efficient restaurant models and a full rollout of kiosks by year-end. Texas market entries have shown promising results.
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Q2 2024 saw 7.5% sales growth driven by new units, but same-restaurant sales declined 0.6% as traffic remained pressured. Management expects flat to slightly positive comps for the year, with margin and CapEx guidance lowered due to operational efficiencies and new restaurant prototypes.
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Management outlined a growth strategy focused on Sun Belt expansion, targeting 12%-15% new unit growth and mid-teens revenue growth. Operational improvements, menu innovation, and a new restaurant design are expected to drive traffic and improve returns, with new units targeting 25% cash-on-cash returns by year three.
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Expansion is accelerating in high-growth Sun Belt markets, supported by strong unit economics and a new, more efficient restaurant prototype. The brand maintains high customer loyalty, competitive value, and is enhancing operational efficiency and customer engagement.