Portillo’s(PTLO) - 2025 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2025 was $185.7 million, an increase of 0.6% or $1.1 million compared to Q4 2024[3] - Same-restaurant sales decreased by 3.3%, resulting in a decline of $5.4 million in revenue for the quarter[3] - Operating income for Q4 2025 was $10.3 million, a decrease of 25.3% or $3.5 million compared to Q4 2024[9] - Net income for Q4 2025 was $6.3 million, down 49.5% or $6.2 million from Q4 2024[10] - Restaurant-Level Adjusted EBITDA for Q4 2025 was $40.6 million, a decrease of 10.3% or $4.7 million compared to Q4 2024[11] - Total revenue for fiscal 2025 was $732.1 million, an increase of 3.0% or $21.5 million compared to fiscal 2024[13] - Same-restaurant sales for fiscal 2025 decreased by 0.5%, resulting in a decline of $2.9 million[13] - Operating income for fiscal 2025 was $43.7 million, a decrease of 24.8% or $14.4 million compared to fiscal 2024[16] - Net income for the fiscal year ended December 28, 2025, was $21,092, a decrease of 40% compared to $35,076 in the previous year[42] - Adjusted EBITDA for the fiscal year was $97,331, down from $104,760, reflecting a decline of 7.4%[43] - Net income for Q4 2025 was $6,277,000, representing a net income margin of 3.4%, compared to $12,429,000 and 6.7% in Q4 2024[53] - Adjusted EBITDA for fiscal year 2025 was $97,331,000, with an Adjusted EBITDA margin of 13.3%, down from $104,760,000 and 14.7% in fiscal year 2024[53] - Operating income for Q4 2025 was $10,331,000, with an operating income margin of 5.6%, compared to $13,833,000 and 7.5% in Q4 2024[57] - Restaurant-Level Adjusted EBITDA for fiscal year 2025 was $158,402,000, with a Restaurant-Level Adjusted EBITDA margin of 21.6%, down from $168,114,000 and 23.7% in fiscal year 2024[57] Expansion and Growth - The company opened eight new restaurants in fiscal 2025, bringing the total to 102[19] - Fiscal 2026 outlook includes the opening of 8 new units and a restaurant-level adjusted EBITDA margin target of 20.5% to 21%[21] - Portillo's continues to expand its restaurant footprint, operating over 100 locations across 11 states, with plans for further growth in new markets[30] Operational Costs and Expenses - Total restaurant operating expenses for the quarter were $145.171 million, accounting for 78.2% of net revenues, compared to 75.5% in the prior year, indicating an increase in operational costs[38] - General and administrative expenses for fiscal year 2025 totaled $77,140,000, compared to $75,089,000 in fiscal year 2024[57] - Depreciation and amortization for Q4 2025 was $7,623,000, up from $6,568,000 in Q4 2024[57] - Interest expense for fiscal year 2025 was $22,808,000, down from $25,616,000 in fiscal year 2024[53] - Strategic realignment costs in fiscal year 2025 amounted to $6,474,000, including $4.4 million related to the company's strategic reset[56] - The company incurred a loss on disposal of property and equipment, along with impairment charges totaling $2,635,000 in fiscal year 2025[55] Financial Position - Total assets increased to $1,606,534, up from $1,500,086, representing a growth of 7.1% year-over-year[40] - Total current liabilities rose to $193,956, an increase of 43% from $135,569 year-over-year[40] - Cash and cash equivalents at the end of the period were $19,963, down from $22,876, a decrease of 12.5%[42] - Long-term debt, net of current portion, decreased to $237,977 from $275,422, a reduction of 13.6%[40] - Total stockholders' equity attributable to Portillo's Inc. increased to $467,797, up from $401,061, a growth of 16.6%[40] Customer Engagement and Market Adaptation - The company emphasizes its loyalty program, Portillo's Perks, which enhances customer engagement and retention through rewards and exclusive offers[31] - Portillo's is focused on enhancing its digital ordering and delivery platforms, which are critical for adapting to changing consumer preferences and market conditions[35] Risks and Challenges - The company faces various risks, including economic uncertainties, competition, and operational challenges, which could impact future performance and growth strategies[35]