(2) See appendix for a reconciliation to the most directly comparable GAAP financial measure (3) A geometric comparable sales measure is used to determine the compounding effect of an earlier period's year over year comparable subsequent period's year over year comparable sales percentage. Note: We use a 52- or 53*week flscal year ending on or prior to December 31. Fourth quarter 2023 consisted of 14 weeks and fourth quarter 2022 consisted of 13 weeks. The additional week in the fourth quarter 2023 included ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-40951 PORTILLO'S INC. (Exact name of registrant as specified in its charter) Delaware 87-1104304 (State or other jurisdiction of incorporation ...

Financial Highlights for Fiscal Year 2023 (53 weeks)* vs. Prior Year (52 weeks)*: Portillo's Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results Chicago, IL— February 27, 2024—Portillo's Inc. ("Portillo's" or the "Company") (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the fourth quarter and fiscal year ended December 31, 2023. Michael Osanloo, President and Chief Executive Officer of Portillo's, said " ...

Financial Data and Key Metrics Changes - In Q3 2023, revenues were $166.8 million, an increase of $15.7 million or 10.4% compared to Q3 2022, primarily driven by new restaurant openings and increased same restaurant sales [6][30] - Restaurant-level adjusted EBITDA increased 22.9% to $41.9 million in Q3 2023 from $34.1 million in Q3 2022, with adjusted EBITDA margins at 25.1% compared to 22.6% in the prior year [8][116] - Income tax expense was $2.6 million in Q3 2023, up $1.6 million from Q3 2022, with an effective tax rate of 28.6% versus 23.9% in the prior year [10][126] Business Line Data and Key Metrics Changes - Same restaurant sales grew 3.9% in Q3 2023, attributed to a 7.4% increase in average check, partially offset by a 3.5% decrease in transactions [31][122] - Labor as a percentage of revenues decreased to 25.5% in Q3 2023 from 25.9% in Q3 2022, despite higher labor utilization and investments in team members [7][123] - Other operating expenses increased by $1.7 million or 10% in Q3 2023, mainly due to new restaurant openings and higher credit card fees [34] Market Data and Key Metrics Changes - The company opened 12 new restaurants in 2023, with significant growth in the Sunbelt region, including Texas, Arizona, and Florida [5][120] - The company anticipates continued pressure on restaurant-level adjusted EBITDA margins due to planned new restaurant openings and the roll-off of pricing [35][58] Company Strategy and Development Direction - The company aims for low-single digit comp growth and revenue growth from new units, with a focus on self-funded development to drive near-term revenue growth [16][31] - The company is strategically positioning itself in growth markets with significant population increases, such as Texas and Florida, to counteract negative trends in its traditional markets [130] - The company is committed to maintaining operational efficiency and enhancing guest experiences to drive long-term shareholder value [124][141] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improvements in transaction trends going into Q4 2023, indicating a return to more normal seasonality in the restaurant industry [153] - The company is cautious about pricing strategies, having foregone any pricing increases for the remainder of the year to maintain value for customers [80][129] - Management noted that labor inflation is expected to remain in the mid-single digit range for the full year, with ongoing investments in team member compensation [123][101] Other Important Information - The company ended Q3 2023 with $12.9 million in cash and increased its CapEx range to $75 million to $80 million for future restaurant growth [37][150] - The company is facing delays in permitting and utility hookups, which are impacting restaurant opening timelines [55] Q&A Session Summary Question: What are the trends observed in October? - Management noted strong momentum in October, indicating a return to a more normal rhythm in the restaurant industry compared to previous quarters [153] Question: How does Portillo's stack up as a long-term investment given recent traffic trends? - Management acknowledged the challenges of negative transaction growth in the Midwest but emphasized growth in states with positive population trends [130][154] Question: What initiatives can the company take to maintain traffic? - Management highlighted the importance of operational excellence and guest experiences as key drivers for repeat visits, rather than discounts or promotions [141] Question: What is the outlook for labor inflation and commodity prices? - Management expects labor inflation to remain in the mid-single digit range and anticipates continued pressure on commodity prices, particularly beef [101][101] Question: How is the company managing new unit contributions? - Management expressed satisfaction with the performance of new units and their contributions to overall revenue growth, despite some initial lower average weekly sales [74][120]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10- Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 24, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-40951 PORTILLO'S INC. (Exact name of registrant as specified in its charter) Delaware 87-1104304 (State or other jurisdiction of incorpo ...

Portillo's Inc. (NASDAQ:PTLO) Q2 2023 Results Conference Call August 3, 2023 10:00 AM ET Company Participants Barbara Noverini - Director, Investor Relations Michael Osanloo - President and Chief Executive Officer Michelle Hook - Chief Financial Officer Conference Call Participants Sharon Zackfia - William Blair Andy Barish - Jefferies Brian Mullan - Piper Sandler Sara Senatore - Bank of America Gregory Francfort - Guggenheim Chris O'Cull - Stifel Dennis Geiger - UBS David Tarantino - Baird Brian Harbour - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10- Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 25, 2023 (Exact name of registrant as specified in its charter) Delaware 87-1104304 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 2001 Spring Road, Suite 400, Oak Brook, Illinois 60523 (Address of principal executive offices) (630) 954-3773 (Registr ...

Portillo’s Inc. (NASDAQ:PTLO) Q1 2023 Earnings Conference Call May 4, 2023 10:00 AM ET Company Participants Barbara Noverini - Director, Investor Relations Michael Osanloo - President and Chief Executive Officer Michelle Hook - Chief Financial Officer Conference Call Participants Brian Harbor - Morgan Stanley Sharon Zackfia - William Blair David Tarantino - Baird Sara Senatore - Bank of America Dennis Geiger - UBS Andy Barish - Jefferies Gregory Francfort - Guggenheim Securities Chris O’Cull - Stifel Operat ...

Part I – Financial Information [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) For the quarter ended March 26, 2023, Portillo's Inc. reported a 16.0% increase in total revenues to $156.1 million, driven by new restaurant openings and a 9.1% rise in same-restaurant sales, resulting in a net loss of $1.3 million due to increased operating expenses, higher interest costs, and a $3.5 million loss on debt extinguishment, with total assets increasing to $1.30 billion and cash decreasing to $14.6 million [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 26, 2023, total assets increased to $1.30 billion from $1.28 billion, while cash and cash equivalents decreased to $14.6 million and total liabilities rose to $878.7 million, primarily due to an increase in the Tax Receivable Agreement liability Balance Sheet Summary (In thousands) | Balance Sheet Items (In thousands) | March 26, 2023 | December 25, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14,611 | $44,427 | | Total current assets | $35,878 | $65,326 | | Total assets | $1,301,703 | $1,280,083 | | **Liabilities & Equity** | | | | Total current liabilities | $83,739 | $77,297 | | Long-term debt, net | $288,979 | $314,425 | | Tax Receivable Agreement liability | $292,490 | $252,003 | | Total liabilities | $878,717 | $847,182 | | Total stockholders' equity | $422,986 | $432,901 | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q1 2023, revenues grew 16.0% to $156.1 million, but the company reported a net loss of $1.3 million, or ($0.01) per share, primarily due to a $3.5 million loss on debt extinguishment, higher interest expense, and increased operating costs Income Statement Summary (In thousands) | Income Statement (In thousands) | Q1 2023 (Ended Mar 26) | Q1 2022 (Ended Mar 27) | Change YoY | | :--- | :--- | :--- | :--- | | Revenues, Net | $156,061 | $134,482 | +16.0% | | Total restaurant operating expenses | $121,240 | $106,499 | +13.8% | | Operating Income | $8,493 | $6,814 | +24.6% | | Interest Expense | $7,444 | $6,099 | +22.1% | | Loss on debt extinguishment | $3,465 | $0 | N/A | | Net (Loss) Income | $(1,273) | $550 | -331.5% | | Diluted EPS | $(0.01) | $0.00 | N/A | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $6.5 million, while net cash used in investing activities rose to $20.2 million for new restaurant construction, and net cash used in financing activities was $16.1 million, resulting in an overall decrease of $29.8 million in cash and cash equivalents Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Q1 2023 (Ended Mar 26) | Q1 2022 (Ended Mar 27) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $6,486 | $800 | | Net Cash used in Investing Activities | $(20,190) | $(6,279) | | Net Cash used in Financing Activities | $(16,112) | $(1,602) | | **Net Decrease in Cash** | **$(29,816)** | **$(7,081)** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's structure, recent secondary offerings, and debt refinancing, including a new $300 million term loan and $100 million revolver facility, which led to a $3.5 million loss on debt extinguishment and an increase in the Tax Receivable Agreement liability to $298.8 million - As of March 26, 2023, the company operated **74 restaurants**, an increase from 71 at the end of 2022[26](index=26&type=chunk) - In Q1 2023, a secondary offering was completed, with the company not receiving proceeds, but its ownership in Portillo's OpCo increased from **67.0% to 75.2%**[27](index=27&type=chunk)[28](index=28&type=chunk)[78](index=78&type=chunk) - On February 2, 2023, the company entered a new credit agreement with a **$300 million term loan** and a **$100 million revolving facility**, used to pay off the previous 2014 Credit Agreement[56](index=56&type=chunk)[66](index=66&type=chunk) - The payoff of the 2014 Credit Agreement resulted in a **$3.5 million loss on debt extinguishment** from the write-off of deferred financing costs and original issuance discount[68](index=68&type=chunk)[148](index=148&type=chunk) - The estimated obligation for future payments under the Tax Receivable Agreement (TRA) totaled **$298.8 million** as of March 26, 2023, with an expected payment of **$6.3 million** related to tax year 2022 within 12 months[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 16.0% revenue growth in Q1 2023 to a 9.1% increase in same-restaurant sales and new restaurant contributions, improving Restaurant-Level Adjusted EBITDA Margin to 22.3% despite 8.9% commodity inflation, while also refinancing debt and planning nine new restaurant openings in 2023 [Financial Highlights and Recent Trends](index=35&type=section&id=Financial%20Highlights%20and%20Recent%20Trends) Total revenue grew 16.0% and same-restaurant sales increased 9.1% in Q1 2023, leading to a **$6.8 million** increase in Restaurant-Level Adjusted EBITDA to **$34.8 million**, despite ongoing **8.9%** commodity inflation, which the company addressed with menu price increases Financial Highlights | Financial Highlights | Q1 2023 | Change from Q1 2022 | | :--- | :--- | :--- | | Total Revenue | $156.1 million | +16.0% | | Same Restaurant Sales | +9.1% | N/A | | Operating Income | $8.5 million | +$1.7 million | | Net Loss | $(1.3) million | -$1.8 million | | Restaurant-Level Adjusted EBITDA* | $34.8 million | +$6.8 million | | Adjusted EBITDA* | $19.6 million | +$2.0 million | - Commodity inflation was **8.9%** for the quarter, compared to 15.7% in the prior year quarter, with the company estimating mid-single-digit commodity inflation for the full fiscal year 2023[114](index=114&type=chunk) - The company plans to open **nine new restaurants** in 2023[113](index=113&type=chunk) [Consolidated Results of Operations](index=38&type=section&id=Consolidated%20Results%20of%20Operations) Revenue increased by **$21.6 million** (16.0%) driven by a 9.1% rise in same-restaurant sales and new restaurant contributions, while labor expenses decreased to **25.9%** of revenue due to sales leverage, despite general and administrative expenses rising **19.7%** to **$18.8 million** - The **9.1%** increase in same-restaurant sales was driven by a **7.0%** increase in average check and a **2.1%** increase in transactions[123](index=123&type=chunk) - Labor as a percentage of revenue decreased by **1.8%**, primarily due to leverage from higher average check and transaction volumes, which offset wage rate increases[127](index=127&type=chunk) - Pre-opening expenses increased by **$1.8 million** to **$2.3 million** due to the timing and location of new restaurant openings[136](index=136&type=chunk) [Key Performance Indicators and Non-GAAP Financial Measures](index=44&type=section&id=Key%20Performance%20Indicators%20and%20Non-GAAP%20Financial%20Measures) Key metrics showed positive operational trends, with Average Unit Volume (AUV) increasing to **$8.7 million** and same-restaurant sales growing **9.1%**, leading to an improved Restaurant-Level Adjusted EBITDA Margin of **22.3%**, despite a slight decrease in Adjusted EBITDA Margin to **12.6%** Key Performance Indicators | Key Metrics | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Restaurants | 75 | 70 | | AUV (in millions) | $8.7 | $8.3 | | Change in same-restaurant sales | 9.1% | 8.2% | | Adjusted EBITDA Margin | 12.6% | 13.1% | | Restaurant-Level Adjusted EBITDA Margin | 22.3% | 20.8% | - The Comparable Restaurant Base for calculating same-restaurant sales included **63 restaurants** for the quarter ended March 26, 2023[157](index=157&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 26, 2023, the company had **$14.6 million** in cash and **$85.6 million** available under its new **$100 million** revolving credit facility, with cash flow from operations expected to be sufficient for the next twelve months, despite a material **$298.8 million** Tax Receivable Agreement obligation - As of March 26, 2023, the company had **$14.6 million** in cash and cash equivalents and **$85.6 million** of availability under its 2023 Revolver Facility[169](index=169&type=chunk) - The company estimates its obligation for future payments under the TRA totaled **$298.8 million**, with a payment of **$6.3 million** related to tax year 2022 expected within the next 12 months[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes to its exposure to market risks compared to its 2022 Annual Report on Form 10-K disclosures - There have been no material changes to the company's exposure to market risks as described in its 2022 Annual Report on Form 10-K[195](index=195&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 26, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[196](index=196&type=chunk) - There were no changes to internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[197](index=197&type=chunk) Part II – Other Information [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal proceedings and claims arising in the normal course of business, with management believing their ultimate outcome will not materially affect the financial statements - The company is party to legal proceedings in the normal course of business but does not expect the outcomes to have a material effect on its financial statements[91](index=91&type=chunk)[199](index=199&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The company highlights updated risk factors, including potential impacts from employment and labor laws, unionization activities, such as a recent vote at one commissary, and risks related to recent banking sector instability that could affect cash access or financing - On April 13, 2023, team members at one of the company's commissaries elected to be represented by a union, which could impact compensation arrangements and operating costs[204](index=204&type=chunk) - The company identified new risks related to the financial condition of U.S. banking organizations, noting that future bank failures could threaten its ability to access its cash and cash equivalents or secure financing[205](index=205&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2023, the company completed a secondary offering of **8,000,000** Class A common stock shares, from which Portillo's received no proceeds, as funds were used to purchase equity from pre-IPO members, increasing Class A shares and decreasing Class B shares outstanding - The company completed a secondary offering of **8,000,000** Class A shares, with proceeds used to purchase equity from pre-IPO members, resulting in no cash received by Portillo's Inc[207](index=207&type=chunk)[209](index=209&type=chunk) [Item 3. Defaults Upon Senior Securities](index=56&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[210](index=210&type=chunk) [Item 4. Mine Safety Disclosures](index=56&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[210](index=210&type=chunk) [Item 5. Other Information](index=56&type=section&id=Item%205.%20Other%20Information) No other material information was reported - No other information was reported[212](index=212&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications required by the Sarbanes-Oxley Act

Portillo's Inc. (NASDAQ:PTLO) Q4 2022 Earnings Conference Call March 3, 2023 10:00 AM ET Company Participants Barbara Noverini - Investor Relations Michael Osanloo - President and Chief Executive Officer Michelle Hook - Chief Financial Officer Conference Call Participants Sara Senatore - Bank of America Sharon Zackfia - William Blair David Tarantino – Baird Brian Harbour - Morgan Stanley Dennis Geiger - UBS Andy Barish - Jefferies Chris O'Cull - Stifel Gregory Francfort - Guggenheim Securities Brian Mullan ...