Portillo’s Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Core Insights - Portillo's Inc. reported financial results for the fourth quarter and fiscal year ended December 29, 2024, highlighting solid momentum and strategic initiatives for long-term growth [1][2]. Financial Highlights for Fourth Quarter 2024 - Total revenue decreased by 1.7% to $184.6 million compared to $187.9 million in the prior year [11]. - Same-restaurant sales increased by 0.4%, attributed to a 4.1% rise in average check, despite a 3.7% decrease in transactions [11]. - Operating income fell by $0.6 million to $13.8 million, while net income rose by $2.8 million to $12.4 million [15][16]. - Restaurant-Level Adjusted EBITDA decreased by $0.5 million to $45.2 million, and Adjusted EBITDA decreased by $0.9 million to $25.2 million [17]. Financial Highlights for Fiscal Year 2024 - Total revenue increased by 4.5% to $710.6 million, driven by the opening of new restaurants [19]. - Same-restaurant sales decreased by 0.6%, with a 3.2% drop in transactions offset by a 2.6% increase in average check [19]. - Operating income rose by $2.6 million to $58.0 million, and net income increased by $10.3 million to $35.1 million [22][23]. - Restaurant-Level Adjusted EBITDA increased by $2.9 million to $168.1 million, and Adjusted EBITDA grew by $2.5 million to $104.8 million [24]. Recent Developments and Trends - The company opened 10 new restaurants in fiscal 2024, expanding its footprint in various states [10]. - Commodity inflation stabilized, with rates of 1.8% in Q4 2024 and 4.2% for the fiscal year, compared to higher rates in the previous year [9]. - Labor expenses as a percentage of revenue decreased by 0.1% due to higher average checks and lower variable compensation [9]. Fiscal 2025 Financial Targets - The company aims to open 12 new units, with same-restaurant sales projected to be flat to +2% and revenue growth targeted at 11% to 12% [26]. - Commodity inflation is expected to range from 3% to 5%, and labor inflation is projected at 3% to 4% [26]. Long-Term Financial Targets - Annual unit growth is targeted at 12% to 15%, with revenue growth anticipated in the mid-teens [27].