Portillo's Announces Plan to Further Strengthen Board Through Cooperation Agreement with Engaged Capital

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]