Portillo's (NasdaqGS:PTLO) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Company ParticipantsChris Brandon - VP of Investor RelationsMichael Miles - Chairman of the Board and Interim CEOMichelle Hook - CFOSharon Zackfia - Partner and Group Head of the Consumer SectorConference Call ParticipantsAndy Barish - AnalystBrian Harbour - Research AnalystBrian Mullan - Restaurant and Food Distribution AnalystDavid Tarantino - Restaurants AnalystDennis Geiger - Restaurants AnalystGregory Francfort - Senior Anal ...

First Watch Restaurant Group (NasdaqGS:FWRG) Q4 2025 Earnings call February 24, 2026 08:00 AM ET Company ParticipantsAndy Barish - Managing Director, Equity ResearchBrian Vaccaro - Managing DirectorChris Tomasso - CEO and PresidentMatt Eisenacher - Chief Brand OfficerMel Hope - CFOSteven Marotta - Vice President of Investor RelationsConference Call ParticipantsAndrew Charles - Managing Director and Senior Research AnalystBrian Mullan - Director and Senior Research AnalystGregory Francfort - Senior AnalystJe ...

As always, maintaining our value proposition was a big topic of conversation. Based on these calls, we will be implementing a 1.9% menu price increase at the beginning of the second quarter. We will also continue to focus on our lineup of beverages with all of our restaurants offering some combination of mocktails, dirty sodas, and a $5 all-day, everyday beverage special. Moving on to technology. As I mentioned earlier, in late 2025, we completed the rollout of our digital kitchen and upgraded guest managem ...

Financial Data and Key Metrics Changes - In 2025, revenue grew to nearly $5.9 billion, marking a successful year with all three brands achieving positive sales and traffic growth [6] - Same-store sales increased by 4.9% for the full year, with traffic growth of 2.8% [14] - Consolidated average unit volume exceeded $8.4 million, with average weekly sales of over $166,000 at Texas Roadhouse [14] - For the fourth quarter of 2025, revenue growth was reported at 3.1%, driven by a 4% increase in average weekly sales [18] - Diluted earnings per share decreased by 26.1% to $1.28 in the fourth quarter [18] Business Line Data and Key Metrics Changes - Texas Roadhouse achieved average weekly sales of over $166,000, while Bubba's 33 and Jaggers reported average weekly sales of $122,000 and nearly $73,000, respectively [14] - The company opened 48 new restaurants in 2025, including 28 new store openings and the acquisition of 20 franchise locations [7] - The company plans to open approximately 35 company restaurant locations across three brands in 2026 [7] Market Data and Key Metrics Changes - The company experienced a 1.9% menu price increase planned for the second quarter of 2026 [8] - Commodity inflation guidance for 2026 is approximately 7%, with beef inflation accounting for nearly all expected commodity inflation [16] - Labor inflation is expected to remain at 3%-4% for 2026 [16] Company Strategy and Development Direction - The company aims to maintain its focus on legendary food and service while navigating commodity inflation challenges [8] - The rollout of the Digital Kitchen and upgraded Guest Management Systems is expected to enhance operational efficiency and customer experience [9] - The company is committed to expanding its restaurant base and enhancing guest experiences through technology and menu innovations [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that commodity inflation will continue to be a headwind but remains committed to long-term growth strategies [8] - The company is optimistic about its ability to drive top-line growth despite current cost pressures [15] - Management expressed confidence in the long-term strategy and the potential for continued success in the coming years [15] Other Important Information - The company ended 2025 with over $130 million in cash and generated over $730 million in cash flow from operations [15] - A 10% increase in the quarterly dividend was announced, bringing it to $0.75 per quarter [17] - The company raised over $40 million for local schools and nonprofit organizations through community initiatives [6] Q&A Session Summary Question: Impact of December sales slowdown - Management acknowledged that December's sales slowdown was influenced by weather conditions and resulted in a higher ratio of labor hours versus traffic [28][31] Question: Long-term beef inflation outlook - Management indicated that beef inflation is expected to remain a challenge, with no immediate relief anticipated [30][32] Question: Digital Kitchen rollout impact - The Digital Kitchen has improved operational efficiency, allowing for increased focus on to-go business [34][36] Question: Pricing strategy for 2026 - The company plans to implement a 1.9% menu price increase, with a focus on maintaining value for customers [40][41] Question: Tax refunds and consumer spending - Management noted that larger-than-expected tax refunds could potentially drive incremental consumption [46] Question: G&A guidance breakdown - The increase in G&A is primarily due to new long-term management equity grants and higher forecasted incentive compensation [80][82] Question: Handheld ordering system testing - The handheld ordering system is being refined and tested, with plans for broader implementation later in the year [59][60]

Texas Roadhouse (NasdaqGS:TXRH) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Company ParticipantsDavid Palmer - Senior Managing DirectorDennis Geiger - Executive DirectorJacob Aiken-Phillips - VP Equity ResearchJeff Farmer - Managing DirectorJerry Morgan - CEOKeith Humpich - Chief Accounting and Financial Services OfficerMichael Bailen - VP of Investor RelationsMike Lenihan - CFORahul Krotthapalli - VP, Equity ResearchConference Call ParticipantsAndrew Charles - Managing Director and Research Analyst ...

Summary of Key Points from the Earnings Call Transcript Industry Overview - **Industry Focus**: Autos & Shared Mobility in North America - **Key Themes for Earnings Season**: Memory shortage, commodity inflation, powertrain mix shift, physical AI, and policy impacts [1][11][17] Core Company Insights - **Preference for ICE over EV**: The company maintains an overweight (OW) rating on General Motors (GM) and Ford (F), while underweight (UW) on Rivian (RIVN) and Lucid (LCID) [1][2] - **Ford and GM Outlook**: Both companies are expected to present a positive outlook for 2026, having reduced EV exposure and shifted focus to higher-margin ICE products [3][4] - **Risks for EV OEMs**: Continued demand challenges for RIVN and LCID, with expectations of downside to profitability due to rising commodity costs [4][25] Financial Performance Expectations - **Earnings Projections**: - Ford: Revenue of $42.9 billion, adjusted EBIT of $1.14 billion, and EPS of $0.14 [12] - GM: Revenue of $45.3 billion, adjusted EBIT of $2.73 billion, and EPS of $2.23 [12] - RIVN: Revenue of $1.28 billion, adjusted EBIT of -$0.81 billion, and EPS of -$0.79 [12] - LCID: Revenue of $439 million, adjusted EBIT of -$0.77 billion, and EPS of -$2.55 [12] Commodity and Memory Cost Impacts - **Memory Shortages**: Anticipated cost headwinds of $300-$400 per vehicle for EVs and $100-$200 for ICE vehicles due to DRAM shortages [17][21] - **Commodity Inflation**: Significant increases in commodity prices, with lithium up 107%, copper up 45%, and steel up 37% since last January, potentially impacting margins for high-EV-exposed OEMs [18][21] Market Dynamics - **Auto Retail Outlook**: Positive sentiment towards auto retail, particularly for companies like Carvana (CVNA), with expectations of strong demand and resilient earnings models [5][10] - **Consumer Credit Concerns**: Elevated delinquency rates expected in January, but potential improvements linked to higher tax refunds could benefit auto OEMs and retailers [27] Strategic Shifts - **Powertrain Mix Shift**: Ford and GM are reducing EV capacity in favor of ICE vehicles, which could yield significant EBIT tailwinds [23] - **Investment in AI**: Increased capital allocation towards autonomy and robotics, with a focus on maintaining competitive advantages in the market [26] Policy Impacts - **Affordability and Credit Availability**: Concerns regarding auto affordability due to tariff-related inflation and tightening credit conditions, with potential impacts on consumer behavior and auto sales [27] Conclusion - The overall sentiment is cautiously optimistic for ICE manufacturers like Ford and GM, while EV manufacturers face significant challenges due to rising costs and demand issues. The auto retail sector shows promise, but credit conditions may pose risks in the near term.

Core Viewpoint - Oakmark Global Fund's fourth-quarter 2025 investor letter highlights its strong performance and investment strategy, focusing on long-term capital appreciation through a diverse portfolio of U.S. and non-U.S. companies, with a notable emphasis on Mondelez International, Inc. [1] Group 1: Fund Performance - In the fourth quarter, Oakmark Global Fund (Investor Class) achieved a return of 5.23%, surpassing the benchmark MSCI World Index's gain of 3.12% [1] Group 2: Mondelez International, Inc. Overview - Mondelez International, Inc. (NASDAQ:MDLZ) is identified as a leading global snacking company with significant market shares in crackers, cookies, and chocolate, featuring well-known brands such as Cadbury, Milka, Toblerone, Oreo, and Ritz [3] - As of January 13, 2026, Mondelez's stock closed at $55.94 per share, with a one-month return of 3.94% and a 52-week decline of 1.24%. The company's market capitalization stands at $72.383 billion [2] Group 3: Investment Thesis on Mondelez - The fund believes Mondelez's strong pricing power and potential relief from rising commodity costs will enhance its margins, despite current margin pressures due to commodity inflation [3] - The current market conditions have allowed the fund to acquire Mondelez shares at a discounted valuation compared to historical levels, peers, and the broader market [3] Group 4: Hedge Fund Interest - Mondelez International, Inc. was held by 50 hedge fund portfolios at the end of the third quarter, an increase from 48 in the previous quarter, indicating growing interest among institutional investors [4]

Group 1 - The January 2025 "State of the Industry Report" provides a comprehensive overview of the trucking, maritime, and intermodal markets, highlighting expected trends in the coming weeks [1] - The report includes detailed data on capacity, volumes, and rates, which are essential for understanding market dynamics [1] Group 2 - The truckload market has tightened significantly post-Thanksgiving, with spot rates and tender rejections increasing rapidly [2] - Reefer and dry van segments have tightened more than the previous year, while flatbed remains relatively stable with minimal volatility [2] - Rejection rates are 2-3 percentage points higher year-over-year, and spot rates have increased by nearly 9% year-over-year in aggregate [2] - Intermodal volume has seen a slight year-over-year increase in Q4, driven by strong service and favorable rate spreads compared to truckload [2] - Manufacturing is currently in contraction, as indicated by an ISM PMI of 48.2 in November, attributed to uncertainty and commodity inflation [2] - The Federal Reserve has cut rates again due to weakness in the labor market, with unemployment at 4.6% [2] - Housing market data remains limited but indicates a slow recovery, still down year-over-year [2] - The truckload market lacks economic support from demand to indicate a sustained recovery, although supply conditions are tightening [2]

Core Insights - Rising beef costs are a significant concern for quick-service restaurants, with management at Restaurant Brands International Inc. suggesting that the margin pressure is cyclical rather than structural [1][10] - Beef prices have increased at a high-teens rate year over year, impacting franchisee margins, but management attributes this to the U.S. cattle herd rebuilding cycle, indicating that inflation may be peaking [2][10] - Restaurant Brands International is focusing on operational efficiencies and cost controls instead of aggressive price hikes, which helps maintain brand equity and traffic while margins recover [3][4] Company-Specific Analysis - Beef constitutes about 25% of Burger King U.S.'s commodity basket, leading to mid to high-single-digit overall commodity inflation for 2025 [2] - Management's strategy includes avoiding sharp price increases and instead enhancing operational efficiencies, which aligns with franchisees' confidence in long-term brand initiatives [3][4] - The company's shares have gained 0.3% over the past six months, contrasting with a 6.6% decline in the industry [8] Industry Context - Other competitors like McDonald's and Wendy's are also facing similar beef inflation pressures, with McDonald's leveraging its scale and diversified menu to mitigate impacts [5][7] - Wendy's, being more exposed due to its focus on fresh beef, is implementing selective pricing and efficiency initiatives to counteract cost pressures [6][7] - Overall, the industry perceives elevated beef costs as a temporary challenge rather than a permanent reset, indicating a collective strategy to balance value perception with margin protection [7] Financial Metrics - Restaurant Brands International's forward 12-month price-to-earnings ratio is currently at 16.9, lower than the industry average of 23.98 [12] - The Zacks Consensus Estimate for QSR's 2026 earnings per share has seen an increase over the past 60 days, reflecting positive market sentiment [14]

Industry Overview - The restaurant business and food industry experienced a volatile year due to weak consumer sentiment and tariffs [1] - Value deals and discount campaigns have shown some success in revitalizing brands, but many still face challenges [1] Key Factors to Watch - Commodity inflation, particularly beef prices, will be a significant factor, especially for company-operated fast-casual chains like Chipotle and steak players like Texas Roadhouse [2] - Demand destruction in supermarkets could positively impact companies like Texas Roadhouse and Darden, which spend significantly on beef [3] - The net effect on middle-income consumers will be crucial, with potential consumer engagement expected by the second quarter of 2026 [3] Investment Opportunities - The dining space looks promising, even considering headwinds from GLP1s; casual dining is less affected by negative factors and benefits from early tax relief [4] - Brinker, with its strong execution and value offerings, is a favored name, along with Darden [5] - Value players within the fast-food sector may perform well; McDonald's is mentioned as a GARP (Growth at a Reasonable Price) name [5]