Core Insights - Portillo's Inc. reported a 6.4% increase in total revenue for Q1 2025, amounting to $176.4 million, compared to $165.8 million in Q1 2024, driven by new restaurant openings and an increase in same-restaurant sales [4][8][9] - Same-restaurant sales rose by 1.8% in Q1 2025, a recovery from a 1.2% decline in the same period last year, attributed to a 4.9% increase in average check despite a 3.1% decrease in transactions [4][8][9] - The company experienced commodity inflation of 3.4% in Q1 2025, down from 4.8% in Q1 2024, while labor costs as a percentage of revenue increased by 0.5% due to lower transactions and higher benefit expenses [5][10] Financial Performance - Operating income increased by $0.3 million to $10.4 million, reflecting a 2.8% rise compared to the previous year [12] - Net income decreased by $1.4 million to $4.0 million, a decline of 25.3%, primarily due to a $2.5 million increase in income tax expense [13] - Restaurant-Level Adjusted EBITDA rose by $0.3 million to $36.7 million, while Adjusted EBITDA decreased by $0.6 million to $21.2 million [14] Operational Developments - The company opened ten new restaurants in 2024, contributing $7.9 million to the revenue increase [8] - Portillo's is focusing on traffic-driving strategies, including the launch of the "Portillo's Perks" loyalty program and testing breakfast offerings at five locations [7][17] - The company plans to open 12 new restaurants in fiscal 2025, with a focus on markets outside Chicagoland, particularly in Texas and Atlanta [17] Financial Targets - Updated financial targets for fiscal 2025 include same-restaurant sales growth of 1% to 3% and revenue growth of 10% to 12% [18] - Long-term financial targets project annual unit growth of 12% to 15% and mid-teens revenue growth [20] Key Metrics - Total restaurants increased to 94 as of March 30, 2025, from 85 a year earlier [41] - Average Unit Volume (AUV) decreased to $8.7 million from $9.0 million [41] - Restaurant-Level Adjusted EBITDA Margin was 20.8%, down from 21.9% in the previous year [41]

Core Points - Portillo's is celebrating Italian Beef Day with a month-long event featuring exclusive offers and activities [1][10] - The celebration includes a BOGO sandwich deal for loyalty program members, a CTA Blue Line train takeover, and a nationwide scavenger hunt [2][8] Company Overview - Portillo's was founded in 1963 by Dick Portillo and has grown to over 90 restaurants across 10 states, known for its Italian beef sandwiches and other Chicago-style foods [4] - The company offers a loyalty program called Portillo's Perks, allowing members to earn rewards and access exclusive deals [5] Marketing Activities - The BOGO deal allows Portillo's Perks members to buy one regular Italian Beef sandwich and get one free throughout May [8] - The CTA Blue Line train will be wrapped in Italian Beef-themed branding from May 5 to June 1, promoting the sandwich [8] - A social scavenger hunt will take place in multiple cities, including Chicago, Dallas, and Phoenix, where fans can find swag bags containing branded merchandise and free sandwich cards [8]

Core Viewpoint - Portillo's Inc. has entered into a cooperation agreement with Engaged Capital to identify a new director with restaurant operations experience for its Board of Directors [1][2] Group 1: Cooperation Agreement - The cooperation agreement aims to enhance the Board's expertise by adding a director with relevant restaurant operating experience [1][2] - Engaged Capital played a role in introducing Jack Hartung to the Board in January, indicating a collaborative relationship [2] - Engaged Capital has agreed to customary standstill and voting agreements as part of the cooperation [2] Group 2: Company Strategy and Performance - Portillo's Board is focused on driving traffic, improving margins, and delivering industry-leading unit economics for shareholders [2] - The company is taking actions to shrink restaurant size, drive sustainable same-store sales, and improve restaurant margins, indicating a strategic focus on operational efficiency [2] - Portillo's is recognized for its iconic brand and industry-leading average unit volumes (AUVs) both in and outside of Chicago [2] Group 3: Company Background - Portillo's was founded in 1963 and has grown to over 90 restaurants across 10 states, known for its Chicago-style hot dogs and other menu items [4] - The company offers a loyalty program and ships food nationwide, enhancing customer engagement and market reach [4] Group 4: Engaged Capital Overview - Engaged Capital is an investment advisor focused on building sustainable businesses and creating long-term stockholder value [5] - The firm engages with management and boards of undervalued public companies to unlock embedded value [5]

Core Viewpoint - Portillo's Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price fluctuations [3]. Company Performance and Outlook - The upgrade for Portillo's Inc. reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. - Analysts have raised their earnings estimates for Portillo's Inc., with the Zacks Consensus Estimate increasing by 4.2% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [6][8]. - Portillo's Inc. is positioned in the top 20% of Zacks-covered stocks, indicating its strong earnings estimate revision feature and potential for market-beating returns [9].

Core Viewpoint - Portillo's Inc. will report its first quarter 2025 financial results on May 6, 2025, before market opening, with a live audio webcast scheduled for 10:00 AM ET [1] Company Overview - Portillo's was founded in 1963 by Dick Portillo, starting with a $1,100 investment in a hot dog stand called "The Dog House" in Villa Park, IL [3] - The company has expanded to over 90 restaurants across 10 states, offering a menu that includes iconic Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads, and chocolate cake [3] Investor Relations - The financial results webcast will be accessible on the company's investor relations website, with a replay available shortly after the event [2] - Investors can also listen via telephone, with a toll-free number provided for domestic calls and an international number [2]

OAK BROOK, Ill., April 08, 2025 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s”) (Nasdaq: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced that it will report first quarter 2025 financial results on Tuesday, May 6, 2025, before the market opens. A live audio webcast is scheduled for 10:00 AM ET that same day. Michael Osanloo, President and Chief Executive Officer, and Michelle Hook, Chief Financial Officer, will host the webcast. The webcast will be ...

Core Viewpoint - Portillo's, despite a significant stock decline, shows strong business performance and growth potential, making it an attractive investment opportunity [1][2]. Company Overview - Portillo's originated as a local chain in Chicago, specializing in hot dogs and Italian beef sandwiches, and has a strong local following [3]. - The company was acquired by a private equity firm and went public in 2021, with plans for national expansion [4]. Growth Strategy - Portillo's is expanding its location count by over 10% annually, aiming to exceed 100 locations by the end of 2025, with a long-term goal of nearly 1,000 locations across the U.S. [4]. - The company is focusing on expanding into Sun Belt markets like Arizona, Texas, and Florida, where brand recognition is already established due to the migration of Chicagoans [5]. Financial Performance - Since going public, Portillo's revenue has increased by 43%, with management projecting 11% to 12% revenue growth for 2025 compared to 2024 [5]. - The average unit volume (AUV) for Portillo's is reported at $8.7 million in 2024, which is among the highest in the industry [10]. Comparable-Store Sales - Concerns have arisen regarding Portillo's comparable-store sales growth, which has seen declines in the first three quarters of 2024, with a slight positive growth of 0.4% in Q4 [6][7]. - Management anticipates flat to 2% growth in comparable-store sales for 2025, which is lower than competitors like Chipotle [7]. Long-Term Outlook - Despite current comparable-store sales challenges, the initial high traffic at new locations in new markets is expected to balance out over time, maintaining profitability [9][10]. - If Portillo's continues to grow its locations by 12% annually, it could reach approximately 132 locations and generate around $1.2 billion in revenue, leading to a projected net income of $120 million [13][14]. Investment Potential - The current market cap of Portillo's is approximately $888 million, with a forward price-to-earnings ratio of 7.4, indicating a potentially undervalued stock [14].

Core Viewpoint - Portillo's Inc. (PTLO) has demonstrated strong stock performance, with a 38.3% increase over the past three months, significantly outperforming the industry and the S&P 500 [1] Group 1: Stock Performance - As of the latest close, PTLO shares were priced at $12.42, which is below the 52-week high of $15.78 but above the 52-week low of $8.38 [1] - PTLO has outperformed competitors such as BJ's Restaurants, Cracker Barrel, and Kura Sushi in the same period [1] Group 2: Growth Factors - The company is experiencing solid revenue growth, expansion efforts, and operational efficiency, aided by increased digital engagement and optimized off-premise business channels [4] - Portillo's is actively pursuing expansion, having opened 10 new locations in 2024, including two prototypes designed for cost-effectiveness and operational efficiency [5] - Plans for 2025 include 12 new openings, focusing on Texas and entering Georgia, with a balanced pipeline expected in 2026 [6] Group 3: Customer Engagement Initiatives - The upcoming launch of Portillo's Perks Loyalty program aims to enhance customer engagement through a digital wallet and personalized marketing strategies, targeting 1.5-1.7 million sign-ups by July [7][9] - The program will be tailored to different markets, encouraging frequent visits in established areas while building brand awareness in newer markets [8] Group 4: Market Position and Future Outlook - Despite a recent 11.2% pullback in stock price, attributed to market volatility and competition, the long-term growth prospects for PTLO remain strong [10] - The company's focus on operational efficiency, innovative restaurant formats, and customer-centric initiatives positions it well for sustained success [11]

Core Viewpoint - Portillo's Inc. (PTLO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, influencing their buying or selling decisions [4]. Company Performance Indicators - Portillo's Inc. is expected to earn $0.36 per share for the fiscal year ending December 2025, reflecting a year-over-year decline of 21.7% [8]. - Over the past three months, the Zacks Consensus Estimate for Portillo's Inc. has increased by 13%, indicating a positive revision trend [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10].

Core Insights - Portillo's Inc. has launched an app-less loyalty program called Portillo's Perks, aiming for 1.5 to 1.7 million signups by mid-summer 2025 [1][2] - The stock experienced a slight decline of 0.07% during trading hours but increased by 0.3% in after-hours trading [1] Loyalty Program Features - Portillo's Perks offers a fully digital experience that adapts to customer behaviors, providing personalized rewards based on visit frequency and ordering habits [2] - Customers must check in with their digital Perks card to access rewards, which include free large French fries and other retail items, and the program is applicable across all ordering channels [3] Traffic Driving Strategies - In addition to the loyalty program, Portillo's is implementing various strategies to drive traffic growth, including expanding kiosk usage, advertising beyond the Chicagoland area, and improving operational efficiency [4] - The company plans to increase its restaurant count, opening 10 new locations in 2024 and 12 in 2025, primarily in Texas [5] Stock Performance - PTLO shares have increased by 16.3% over the past six months, outperforming the Zacks Retail - Restaurants industry, which grew by 10.8% [7] - The company aims to enhance traffic, improve margins, and deliver shareholder value through its new strategies [7]