Portillo’s(US:PTLO)2025-11-04 13:04Financial Performance - Total revenues for the quarter ended September 28, 2025, were $181.4 million, an increase of 1% compared to $178.3 million for the same quarter in 2024[17] - Net income attributable to Portillo's Inc. for the quarter was $1.2 million, down from $7.2 million in the same quarter last year, representing a decrease of 83%[17] - The company reported a loss before income taxes of $465,000 for the quarter, compared to income before income taxes of $11.3 million in the same quarter last year[17] - Basic net income per common share attributable to Portillo's Inc. was $0.02 for the quarter, down from $0.12 in the same quarter last year[17] - Net income for the three quarters ended September 28, 2025, was $14,815,000, a decrease of 34.8% compared to $22,647,000 for the same period in 2024[22] - Operating cash flow for the three quarters ended September 28, 2025, was $48,741,000, down from $71,954,000 in the prior year, reflecting a decline of 32.2%[22] - Net income for the quarter ended September 28, 2025, was $0.8 million, compared to $8.8 million for the same quarter in 2024, representing a decline of 90.9%[100] - For the three quarters ended September 28, 2025, net income was $14.8 million, down from $22.6 million for the same period in 2024, a decrease of 34.5%[100] Assets and Liabilities - Total current assets decreased to $50.1 million as of September 28, 2025, from $52.7 million as of December 29, 2024[16] - Total assets increased to $1.59 billion as of September 28, 2025, compared to $1.50 billion as of December 29, 2024[16] - Total liabilities rose to $1.10 billion as of September 28, 2025, from $1.01 billion as of December 29, 2024[16] - Total stockholders' equity increased to $488,400,000 as of September 28, 2025, compared to $477,592,000 as of September 29, 2024, representing a growth of 2.7%[21] - Total liabilities under the Tax Receivable Agreement decreased by $16,248,000 due to adjustments in deferred tax assets associated with increases in tax basis[21] - The company estimated its obligation for future payments under the Tax Receivable Agreement (TRA) liability to be $353.2 million as of September 28, 2025[92] Expenses - Restaurant operating expenses for the quarter were $144.7 million, an increase of 6% from $136.3 million in the same quarter last year[17] - The company experienced a 10% increase in food, beverage, and packaging costs, totaling $62.6 million for the quarter[17] - The company reported depreciation and amortization expenses of $21,489,000 for the three quarters ended September 28, 2025, compared to $20,729,000 in the previous year, indicating a rise of 3.7%[22] - The company incurred equity-based compensation expenses of $4,288,000 for the three quarters ended September 28, 2025, compared to $9,223,000 in the prior year, a reduction of 53.5%[22] - The company recorded interest paid of $17,326,000 for the three quarters ended September 28, 2025, compared to $13,010,000 for the same period in 2024, reflecting an increase of approximately 33%[24] - Total interest expense for the quarter ended September 28, 2025, was $5.7 million, compared to $6.5 million for the same quarter in 2024[76] Investments and Capital Expenditures - The company invested $58,097,000 in property and equipment during the three quarters ended September 28, 2025, compared to $56,514,000 in the same period last year, reflecting an increase of 2.8%[22] - As of September 28, 2025, total property and equipment, net amounted to $407.3 million, an increase of 13.4% from $359.0 million as of December 29, 2024[52] - The company entered into a joint venture to develop a restaurant at Dallas-Fort Worth International Airport, expected to commence operations in 2026, with a 65% ownership interest[28] - The company capitalized deferred financing costs and issuance discounts of $1.3 million under the 2025 Credit Agreement[74] Operational Changes - The company is actively searching for a new Chief Executive Officer, which may impact future operations and strategy[13] - The company launched Portillo's Perks™, a visit-based loyalty program, on March 3, 2025[49] - The company recognized a non-cash impairment charge of $2.2 million related to its legacy Barnelli's trade name during the quarter ended September 28, 2025[37] - The company recognized trade name impairment charges of $2.2 million during the quarter ended September 28, 2025, with no impairment of goodwill reported[53] Shareholder Information - The weighted average ownership percentage for pre-IPO LLC Members was 4.6% for the quarter ended September 28, 2025, down from 15.8% in the same quarter of the previous year[82] - Portillo's Inc. reported a total of 75,366,495 LLC Units outstanding as of September 28, 2025, with 95.4% owned by Portillo's Inc.[81] - Berkshire Partners LLC and its affiliates beneficially own approximately 5.2% of the Company as of September 28, 2025, following the redemption of 7,290,465 LLC units for Class A common stock[108] Legal Matters - A class action lawsuit was filed alleging wage and hour violations, with a loss considered reasonably possible but not estimable, resulting in no litigation reserve recorded[98] Miscellaneous - No guest accounts for 10% or more of the Company's revenues, indicating a diversified revenue stream[103] - The Company has one operating segment and one reportable segment, as assessed by the Chief Operating Decision Maker[99]