Confirms Receipt of Director Nominations from Engaged. No Shareholder Action Required at This Time.CHICAGO, March 03, 2025 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today confirmed that its Board of Directors has received a letter from an affiliate of Engaged Capital, LLC (“Engaged Capital”) stating that it intends to nominate two director candidates to stand for election to the Compan ...

CHICAGO, March 03, 2025 (GLOBE NEWSWIRE) -- Portillo's, the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced the launch of Portillo's Perks, an app-less loyalty program that rewards guests for their love of Portillo's. Portillo's Perks reimagines the traditional loyalty program by offering a fully digital experience that adapts to guest behaviors. Unlike standard point-based apps, Portillo's Perks lives in guests' digital wallets and delivers personalized rewards ...

Core Insights - Portillo's has launched a new loyalty program called Portillo's Perks, which is designed to enhance the guest experience through a digital wallet integration rather than a traditional app-based system [1][2][3] Company Overview - Portillo's was founded in 1963 by Dick Portillo with an initial investment of $1,100, starting as a hot dog stand called "The Dog House" in Villa Park, Illinois [5] - The company has expanded to over 90 restaurants across 10 states, offering a menu that includes Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads, and chocolate cake [5] Loyalty Program Details - Portillo's Perks offers a fully digital experience that adapts to guest behaviors, providing personalized rewards based on visit frequency and ordering habits [2][3] - Guests can check in with their digital Perks card to earn badges and unlock rewards, such as free large French fries and retail items, with a goal of achieving 1.5-1.7 million membership signups by midsummer 2025 [3][4] - The program aims to remove friction from the guest experience by integrating directly with existing digital wallets, eliminating the need for additional apps or passwords [4]

Group 1 - The article discusses the investment position of Travis Hoium in Portillo's, indicating a personal stake in the company [1] - The Motley Fool, the platform associated with Travis Hoium, does not hold any positions in the stocks mentioned, suggesting a separation between personal and organizational interests [1] - There is a mention of a disclosure policy by The Motley Fool, which highlights the importance of transparency in investment recommendations [1]

Core Insights - The article highlights the expertise of a seasoned equity analyst and accountant specializing in restaurant stocks, emphasizing the analytical models and valuation techniques used to provide insights for investors in the U.S. restaurant market [1] Group 1: Company Overview - The company, Goulart's Restaurant Stocks, focuses on analyzing various segments of the restaurant industry, including QSR, fast casual, casual dining, fine dining, and family dining [1] - The founder has a solid educational background in Business Administration and Accounting, along with an MBA in Forensic Accounting and Controllership, which supports the analytical capabilities of the company [1] Group 2: Analytical Approach - Advanced analytical models and specialized valuation techniques are employed to deliver detailed insights and actionable strategies for investors [1] - The company aims to help investors make informed and strategic decisions based on comprehensive analysis [1] Group 3: Engagement and Contributions - In addition to financial market activities, the company engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - The founder has previously written columns discussing monetary policy, financial education, and financial modeling, aiming to make these topics accessible to a wider audience [1]

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Portillo's Inc. (PTLO) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Portillo's Inc. is one of 212 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Secto ...

Fourth Quarter Earnings Supplemental February 25, 2025 CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future p ...

Financial Data and Key Metrics Changes - Same restaurant sales increased by 0.4% in Q4 2024, while full-year comparable sales were down 0.6% [8][9] - Total revenue for Q4 2024 was $184.6 million, a decrease of $3.2 million or 1.7% year-over-year, but grew 6.1% when excluding the impact of an additional operating week in Q4 2023 [26][27] - Restaurant-level adjusted EBITDA for Q4 2024 was $45.2 million, with a margin of 24.5%, compared to $26.1 million in Q4 2023 [9][36][39] Business Line Data and Key Metrics Changes - Revenue growth in Q4 was driven by non-comparable restaurants contributing $8.6 million, while same restaurant sales growth contributed approximately $600,000 [27] - Average check increased by 4.1%, driven by a 4.7% increase in certain menu prices, partially offset by a 3.7% decrease in transactions [28] Market Data and Key Metrics Changes - The company plans to open twelve new restaurants in 2025, focusing on Texas and Georgia, with a new compact restaurant format expected to lower build costs significantly [14][15][134] - The advertising campaign launched in Dallas-Fort Worth aims to increase brand awareness in Texas, targeting a market with previously low recognition [16][88] Company Strategy and Development Direction - The company is focusing on four key traffic-driving strategies: expanding kiosk usage, advertising beyond Chicagoland, launching the Portillo's Perks loyalty program, and improving operational efficiency [12] - The new compact restaurant format aims to reduce average build costs by over a million dollars, with expectations for strong returns [13][134] Management's Comments on Operating Environment and Future Outlook - Management acknowledged industry headwinds, including weather impacts in February, but expressed confidence in the underlying strength of the business and anticipated improvements in the latter half of 2025 [11][50] - The company expects revenue growth to continue driven by new restaurant openings and modest same-store sales growth in the range of flat to 2% [30] Other Important Information - Commodity inflation is estimated at 3% to 5% for 2025, with significant pressures expected from beef [33][78] - The company has reduced its term loan from $300 million to $250 million, increasing financial flexibility to support growth strategies [40][41] Q&A Session Summary Question: Weather impact on Q1 performance - Management has not quantified the weather impact but remains confident in achieving full-year guidance of 0% to 2% growth despite early challenges [48][50] Question: Drive-through speed improvements - Every thirty seconds of improved throughput in the drive-through is equivalent to one point of comp, and management is optimistic about deploying improvements quickly if tests continue to perform well [52][54] Question: Restaurant of the Future prototype performance - Initial performance of the new restaurant format is promising, with expectations for improved operational efficiency and capital returns [57][60] Question: Menu streamlining effects - Streamlining the menu has reduced complexity and improved throughput, with positive feedback from customers on key items being reintroduced [62][64] Question: Traffic growth expectations - Management anticipates steady improvement in traffic throughout the year, with a conservative approach to pricing and mix [110][112] Question: New restaurant openings in Atlanta - The new restaurant in Atlanta is expected to open in the back half of 2025, with uncertain volume predictions due to being a first-in-market location [115][116] Question: Loyalty program rollout - The loyalty program is in soft launch and expected to fully launch in March, with anticipated positive impacts on traffic in Q2 [122] Question: New store maturity in Texas - New restaurants in Texas are performing more consistently with mature market expectations, with a focus on achieving density for effective marketing [128][131] Question: Non-traditional restaurant formats - The company is fine-tuning the drive-through only format and exploring additional locations, including walk-up options [96][98]

Financial Data and Key Metrics Changes - Same restaurant sales increased by 0.4% in Q4 2024, while full-year comp sales were down 0.6% [8][9] - Total revenue for Q4 was $184.6 million, a decrease of $3.2 million or 1.7% year-over-year, but grew 6.1% when excluding the impact of an additional operating week in Q4 2023 [9][26] - Restaurant-level adjusted EBITDA for Q4 was $45.2 million, with a margin of 24.5%, compared to $26.1 million in Q4 2023 [9][36][39] - Adjusted EBITDA decreased by 3.6% year-over-year, but grew 6.3% when excluding the impact of the extra week [39] Business Line Data and Key Metrics Changes - Revenue growth in Q4 was driven by non-comparable restaurants contributing $8.6 million, while same restaurant sales growth contributed approximately $600,000 [27] - Average check increased by 4.1%, driven by a 4.7% increase in certain menu prices, partially offset by a 3.7% decrease in transactions [28] Market Data and Key Metrics Changes - The company anticipates commodity inflation of 3% to 5% in 2025, with significant pressures expected from beef [33][78] - Labor as a percentage of revenues decreased to 24.6% in Q4 2024 from 25.4% in Q4 2023, driven by an increase in average check and lower variable-based compensation [33] Company Strategy and Development Direction - The company plans to open twelve new restaurants in 2025, focusing on a smaller footprint to reduce build costs [14][134] - Key traffic-driving strategies include expanding kiosk usage, advertising beyond Chicagoland, launching a loyalty program, and improving operational efficiency [12][16] - The company is developing additional restaurant formats, including a more efficient operating model and walk-up locations [15][134] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the plans for 2025, despite challenges such as weather impacting early momentum [11][30] - The company expects revenue growth to be driven by new restaurant openings and modest same-store sales growth in the range of flat to 2% [30][110] Other Important Information - The company has implemented a new app-less loyalty program aimed at driving traffic and engagement [17][100] - Cash from operations increased by 38.5% year-over-year to $98 million year-to-date, with $22.9 million in cash at the end of the quarter [43][44] Q&A Session Summary Question: Weather impact on Q1 performance - Management has not quantified the weather impact but remains confident in achieving full-year guidance of 0% to 2% growth [48][50] Question: Drive-through speed improvements - Every thirty seconds of improved throughput in the drive-through is equivalent to one point of comp, and the company is working to reclaim 45 seconds of lost time [52][53] Question: Restaurant of the Future prototype performance - Initial performance of the new prototype is promising, with no significant difference in revenue or traffic compared to traditional formats [57][58] Question: Menu streamlining effects - Streamlining the menu has reduced complexity and improved throughput, with positive feedback from customers on key items [61][62] Question: Traffic growth expectations for 2025 - Management expects steady improvement in traffic throughout the year, with a conservative guide reflecting modest pricing and mix improvements [110][112] Question: New restaurant openings in Atlanta - The new restaurant in Atlanta is expected to open in the back half of 2025, with uncertain volume predictions [115][116] Question: Loyalty program rollout - The loyalty program is in soft launch and expected to fully launch in March, with anticipated positive impacts in Q2 [122] Question: New store maturity curve in Texas - New restaurants in Texas are performing more consistently with mature market expectations, with a focus on achieving density quickly [128][131] Question: Development of non-traditional formats - The company is fine-tuning the drive-through only format and exploring new locations, including walk-up options [96][98]

Financial Performance - Portillo's reported revenue of $184.6 million for the fourth quarter, reflecting a year-over-year decrease of 1.7%, but this was due to a shorter reporting period compared to the previous year [2] - The company achieved a net income of $12.4 million, marking a 29% increase, resulting in adjusted earnings per share (EPS) of $0.17, significantly above analysts' consensus estimates of $0.07 [2] - Same-store sales increased by 0.4% year over year, reversing a trend of declines over the past three quarters [3] Operational Insights - Restaurant-level earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 1.1% to $45.2 million, influenced by the shorter quarter [3] - Portillo's added six new locations in the fourth quarter, indicating continued measured expansion [3] Market Context - The restaurant industry, including Portillo's, has faced challenges from historically high inflation, high commodity prices, and rising labor costs, impacting operations and consumer spending [4] - Despite these challenges, Portillo's experienced an increase in average check size, although this was partially offset by fewer transactions [5] - The increase in same-store sales reflects the company's strategy of maintaining low prices to foster customer loyalty [5] - Portillo's outperformed its peers in average unit volume, generating sales of $9.1 million per location, surpassing competitors in the fast-food sector [5] Strategic Focus - The company is concentrating on fundamental operations to position itself for future success once inflationary pressures subside [6]