Portillo’s Inc. Announces Fourth Quarter and Fiscal Year 2025 Financial Results

Core Insights - Portillo's Inc. reported a slight revenue increase of 0.6% in Q4 2025 compared to Q4 2024, driven by new restaurant openings, despite a decline in same-restaurant sales [6][10][14] - The company is implementing a new restaurant growth strategy and focusing on operational fundamentals and marketing tactics to improve performance in 2026 [5][23] - Fiscal 2025 saw a total revenue increase of 3.0% year-over-year, but same-restaurant sales decreased by 0.5% [10][14] Fourth Quarter 2025 Performance Highlights - Revenues reached $185.7 million, up from $184.6 million in Q4 2024, an increase of $1.1 million or 0.6% [6][10] - Same-restaurant sales decreased by 3.3%, equating to a $5.4 million decline, primarily due to a 3.3% decrease in transactions [6][10] - Operating income fell to $10.3 million, down 25.3% from $13.8 million in Q4 2024 [9][10] - Net income for the quarter was $6.3 million, a decrease of 49.5% from $12.4 million in Q4 2024 [11][10] - Restaurant-Level Adjusted EBITDA decreased by 10.3% to $40.6 million [12][10] Fiscal 2025 Performance Highlights - Total revenue for fiscal 2025 was $732.1 million, an increase of $21.5 million or 3.0% from $710.6 million in fiscal 2024 [14][10] - Same-restaurant sales decreased by 0.5%, attributed to a 2.5% decrease in transactions, partially offset by a 2.0% increase in average check [14][10] - Operating income for the year was $43.7 million, down 24.8% from $58.0 million in fiscal 2024 [17][10] - Net income for fiscal 2025 was $21.1 million, a decrease of 39.9% from $35.1 million in fiscal 2024 [18][10] - Restaurant-Level Adjusted EBITDA for the year was $158.4 million, down 5.8% from $168.1 million in fiscal 2024 [19][10] Development Highlights - In fiscal 2025, Portillo's opened eight new restaurants, bringing the total to 102 [21][10] - The new restaurant openings included a smaller prototype designed to reduce costs and improve service efficiency [21][10] - As of the filing date, the total restaurant count increased to 104 with two additional openings post-December 28, 2025 [21][10] Fiscal 2026 Outlook - The company plans to open eight new units in fiscal 2026 and anticipates mid-single-digit commodity inflation and labor inflation of 3% to 3.5% [23][10] - The target for restaurant-level adjusted EBITDA margin is set between 20.5% and 21% [23][10] - General and administrative expenses are projected to be between $80 million and $82 million [23][10]