Portillo’s(US:PTLO)2024-11-05 13:05Revenue and Sales Performance - Total revenue for Q3 2024 increased by 6.9% or $11.4 million to $178.3 million compared to Q3 2023[2] - Same-restaurant sales decreased by 0.9%, with a 3.5% decline in transactions partially offset by a 2.6% increase in average check[7] - Revenues for the quarter ended September 29, 2024, were $178,252,000, representing a 6.3% increase from $166,805,000 in the same quarter of the previous year[29] - Net income for the quarter ended September 29, 2024, was $8,773,000, compared to $6,546,000 for the same quarter in 2023, representing a 33.9% increase[44] - Net income attributable to Portillo's Inc. for the quarter was $7,220,000, a 65.5% increase from $4,361,000 in the same quarter last year[30] Operating Income and Expenses - Operating income rose by $0.9 million to $16.0 million, while net income increased by $2.2 million to $8.8 million[11][12] - Total restaurant operating expenses increased by 9.1% to $136.3 million, driven by new restaurant openings and a 3.6% rise in commodity prices[9] - Operating income for the quarter was $15,988,000, representing 9.0% of revenues, compared to $15,097,000 or 9.1% in the prior year[30] - General and administrative expenses for the quarter were $18,305,000, down from $18,898,000 in the previous year, showing a decrease of 3.1%[45] - Interest expense for the quarter was $6,450,000, slightly down from $6,573,000 in the same quarter last year[30] EBITDA and Margins - Restaurant-Level Adjusted EBITDA remained stable at $41.9 million, while Adjusted EBITDA increased by $0.6 million to $27.9 million, a 2.3% rise[13] - Adjusted EBITDA for the quarter was $27,911,000, up from $27,285,000 year-over-year, indicating a growth of 2.3%[44] - The Adjusted EBITDA Margin for the quarter was 15.7%, down from 16.4% in the same quarter last year[44] - Restaurant-Level Adjusted EBITDA reached $41,946,000 for the quarter, slightly increasing from $41,885,000 in the previous year, reflecting a 0.1% rise[45] - The Restaurant-Level Adjusted EBITDA Margin was 23.5% for the quarter, a decrease from 25.1% year-over-year[45] Growth and Expansion Plans - The company opened four new restaurants in 2024 and plans to open five more in December, totaling ten new locations for the fiscal year[14] - The company plans to continue its growth strategy, focusing on opening new restaurant locations in existing and new markets[29] - Long-term financial targets project unit growth of 12% - 15% and revenue growth in the mid-teens[17] Financial Position and Assets - Total assets increased to $1,471,419,000 as of September 29, 2024, compared to $1,385,541,000 on December 31, 2023, representing a growth of 6.2%[31] - Total current liabilities rose to $124,288,000 as of September 29, 2024, from $104,913,000 on December 31, 2023, marking an increase of 18.4%[31] - Total stockholders' equity attributable to Portillo's Inc. increased to $382,441,000 as of September 29, 2024, from $322,379,000 at the end of 2023, reflecting a growth of 18.6%[31] Cost and Inflation - Commodity inflation for Q3 2024 was 3.6%, slightly up from 3.5% in Q3 2023, with labor inflation expected to be approximately 3.0%[5][16] - Total food, beverage, and packaging costs were $60,136,000, which is 33.7% of revenues, compared to 33.3% in the previous year[30] - Labor costs increased to $45,945,000, representing 25.8% of revenues, compared to 25.5% in the same quarter last year[30] Quarterly Performance Overview - Net income for the three quarters ended September 29, 2024, was $22,647,000, up from $15,171,000 for the same period in the previous year, reflecting a year-over-year increase of 49.5%[32] - Adjusted EBITDA for the three quarters ended September 29, 2024, was $79,554,000, compared to $76,140,000 for the same period in 2023, indicating a growth of 3.2%[34] - Same-restaurant sales decreased by 0.9% for the three quarters ended September 29, 2024, compared to an increase of 6.1% for the same period in the previous year[34] - Restaurant-Level Adjusted EBITDA for the three quarters ended September 29, 2024, was $122,886,000, compared to $119,435,000 for the same period in 2023, showing an increase of 2.1%[34] - Net cash provided by operating activities for the three quarters ended September 29, 2024, was $71,954,000, compared to $53,570,000 for the same period in 2023, representing an increase of 34.3%[32]