Portillo’s Inc. Announces Second Quarter 2025 Financial Results

Core Insights - Portillo's Inc. reported a revenue increase of 3.6% to $188.5 million for Q2 2025 compared to $181.9 million in Q2 2024, driven by new restaurant openings and same-restaurant sales growth [4][8][28] - Same-restaurant sales rose by 0.7%, attributed to a 2.1% increase in average check, despite a 1.4% decrease in transactions [4][8] - Net income increased by 17.7% to $10.0 million in Q2 2025, up from $8.5 million in Q2 2024, primarily due to a tax receivable agreement liability adjustment [8][9] Financial Performance - Total restaurant operating expenses rose by 4.9% to $144.0 million, influenced by the opening of nine new restaurants and a 1.9% increase in commodity prices [5][28] - General and administrative expenses increased by 4.8% to $18.8 million, mainly due to higher professional fees and advertising costs [6][28] - Operating income decreased by 3.2% to $17.5 million, reflecting changes in revenue and expenses [7][28] Development Highlights - No new restaurants were opened in Q2 2025, but one new location was opened in Tomball, Texas, after the quarter, bringing the total to 95 [11][12] - The company plans to open 12 new restaurants in the second half of 2025, focusing on the Sunbelt region and entering Atlanta [12][13] Fiscal Targets - Updated fiscal 2025 targets include revenue growth of 5% to 7%, down from a previous target of 10% to 12% [13] - Same-restaurant sales growth target remains at 1% to 3%, with adjusted EBITDA growth expected to be flat to low single digits [13][14] Long-Term Outlook - Long-term financial targets include annual unit growth of 12% to 15% and mid-teens revenue growth [14][15]