Middle Coast Investing is Monitoring Portillo’s (PTLO). Here’s Why

Core Insights - Middle Coast Investing's third-quarter 2025 investor letter indicates a favorable performance, with its portfolio outperforming the S&P 500, returning 9.6% compared to the S&P 500's 7.8% [1] - The Core U.S. portfolios returned 10%, while the Russell 2000 returned 12%, the S&P 600 returned 8.7%, and the Nasdaq generated 11.2% during the same period [1] - European Portfolios appreciated by 5.5% in Q3 2025 [1] Company Focus: Portillo's Inc. (NASDAQ:PTLO) - Portillo's Inc. had a one-month return of -0.77% and a 52-week loss of 47.86%, closing at $6.47 per share with a market capitalization of $465.229 million on October 6, 2025 [2] - Middle Coast Investing acknowledged a misjudgment regarding Portillo's, noting a disappointing Q2 report and lowered guidance, but expressed confidence in the company's strategy and potential to resolve its issues, particularly in Texas [3] - Portillo's Inc. was held by 26 hedge fund portfolios at the end of Q2 2025, an increase from 17 in the previous quarter [4] - The company reported revenue of $188.5 million in Q2 2025, reflecting an increase of $6.6 million compared to Q2 2024 [4] - Despite recognizing Portillo's potential, Middle Coast Investing believes certain AI stocks present greater upside potential and less downside risk [4]