Financial Data and Key Metrics Changes - In Q4 2025, revenues were $185.7 million, an increase of $1.1 million or 0.6% year-over-year. The revenue growth was driven by non-comp restaurants, contributing $7.8 million to the total increase, while same-restaurant sales declined by 3.3%, resulting in a revenue decrease of approximately $5.4 million [10][11] - Average check remained flat, with a 2.3% increase in net effective menu prices offset by a 2.3% decrease in product mix [10] - Restaurant-Level Adjusted EBITDA decreased by $4.7 million to $40.6 million, with margins dropping approximately 270 basis points to 21.8% [13][14] - General and administrative expenses decreased by $0.9 million to $19.4 million, or 10.5% of revenue [14] Business Line Data and Key Metrics Changes - The Texas market expansion continued to be a headwind, impacting overall performance, while the new restaurant in Kennesaw, Atlanta, opened with over $2 million in sales in its first eight weeks [4][10] - The company is focusing on a new development strategy, slowing new store openings to emphasize healthy unit economics [4][5] Market Data and Key Metrics Changes - The company reported a decline in same-restaurant sales, primarily due to a decrease in transactions [10] - The Arizona market experienced pressure due to cannibalization from a new restaurant opening [31] Company Strategy and Development Direction - The company is adopting a more measured pace of new restaurant growth, emphasizing unit economics and return on investment [15] - The strategy includes leveraging the Perks program to drive traffic and improve customer engagement [6][18] - The company plans to open 8 new restaurants in 2026, with capital expenditures estimated between $55 million and $60 million [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the Texas market but expressed confidence in the potential for improvement through targeted actions [12][14] - The company anticipates mid-single-digit commodity inflation and is focused on transaction growth rather than pricing [11][18] - Management is optimistic about the Perks program's role in driving traffic improvements in 2026 [6][18] Other Important Information - The company ended the quarter with $20 million in cash and a total net debt of $334 million [17] - The effective tax rate for the year was 12.4%, down from 16.2% in 2024, primarily due to changes in equity ownership and effective state tax rates [17] Q&A Session Summary Question: Can you provide insights on the Kennesaw restaurant's performance? - The Kennesaw restaurant achieved $3.8 million in sales over its first 100 days, with expectations of settling around $200,000 per week [21][22] Question: What are the implications of the new growth strategy on hiring? - The new strategy may lead to less efficient openings and challenges in distribution and oversight, but the trade-off is considered worthwhile [28] Question: How is the company addressing value perception in the Chicagoland area? - The company has seen improvements in value perception scores due to targeted promotions and operational focus on guest experience [36][39] Question: What are the priorities for the new CMO in 2026? - The new CMO will focus on driving traffic, particularly in Texas, and enhancing the Perks program to increase customer engagement [46][48] Question: How does the company plan to manage pricing and commodity inflation? - The company expects to face mid-single-digit commodity inflation and is cautious about relying on pricing increases, focusing instead on transaction growth [11][64]

Core Insights - Portillo's has appointed Brett Patterson as President and CEO, effective February 23, 2026, who will also join the Board of Directors [1] - Patterson has extensive leadership experience in the restaurant industry, focusing on operations, team development, and sustainable growth [2] - The Board believes Patterson possesses the necessary qualities to lead Portillo's into its next growth phase while maintaining the brand's unique identity [3] Company Overview - Portillo's is a fast-casual restaurant chain based in Chicago, known for its Italian beef sandwiches, Chicago-style hot dogs, and other menu items, with over 100 locations across 11 states [5] - The company operates a model that combines dine-in, drive-thru, takeout, and delivery, aiming to provide an experience-focused dining environment [5] - Portillo's is committed to expanding its brand and bringing its iconic food to a wider audience across the country [5] Leadership Vision - Patterson aims to enhance the company's overall strategy, focusing on market positioning, new restaurant growth, and operational excellence [3] - He emphasizes the importance of investing in team members and improving the guest experience as part of the company's growth strategy [3][4] - Patterson expresses excitement about joining Portillo's, highlighting the brand's strong culture and passionate fan base [4]

Core Insights - Marco's Pizza has appointed Bill Schaffler as Chief Financial Officer and Steve Kennedy as Chief Marketing Officer to support its growth strategy [8] - Both executives bring over two decades of experience in restaurant finance and marketing, which will aid in maintaining disciplined financial leadership and innovative marketing [8] - The pizza chain opened 41 restaurants in the first half of 2025 and is projected to achieve a 28% year-over-year increase in new store openings [8] Group 1: Executive Appointments - Bill Schaffler has a background in multi-unit expansion and financial performance, previously serving as CFO at Hopdoddy Burger Bar [3][4] - Steve Kennedy has experience in marketing and digital transformation, having served as EVP and head of marketing at Noodles & Company [5][6] - Both executives are expected to enhance Marco's growth through data-driven marketing and operational efficiencies [7][8] Group 2: Growth Strategy - Marco's Pizza aims to accelerate growth by emphasizing quality, people, and franchisee relationships [7] - The company is focused on maintaining a disciplined approach to financial leadership while pursuing aggressive expansion plans [8] - The chain's recent performance indicates a strong trajectory with significant new store openings planned [8]

Financial Data and Key Metrics Changes - System-wide sales decreased by 3.3% to $181.9 million compared to the previous year [19] - Total revenue for the quarter was $87.8 million, a 4.1% decrease from $91.6 million in the prior year [20] - Net loss for the quarter was $20.8 million, compared to a loss of $10.7 million in the previous year [26] - Adjusted EBITDA decreased to $5.2 million from $7 million in the prior year [26] Business Line Data and Key Metrics Changes - Twin Peaks revenue increased by 5.8% to $51.1 million, driven by new lodge openings, despite a decline in same-store sales [20] - Smoky Bones revenue decreased by 15.2% to $36.7 million due to strategic conversions and temporary closures [21] - Restaurant level contribution margin for Twin Peaks decreased to 17.7% from 18% in the prior year [25] - Smoky Bones restaurant level contribution margin decreased to 4.9% from 9% in the prior year [25] Market Data and Key Metrics Changes - The second quarter experienced softer sales and traffic due to less favorable sports calendaring, impacting engagement [20] - The absence of key market teams in the NBA and NHL playoffs contributed to lower sales [20] Company Strategy and Development Direction - The company is focusing on operational excellence, reducing complexity, and enhancing guest experience [7][8] - A streamlined menu is being tested to improve execution and speed of service [10] - The company plans to accelerate growth with a robust pipeline of 100 committed lodges, with 75% from existing franchise partners [14] - The strategy includes positioning Twin Peaks as a premier destination for sports events and enhancing community engagement [15][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's strength and the potential for growth despite current challenges [17] - The company anticipates stronger revenue gains in the second half of the year due to an improved sports calendar [14][16] - Management is committed to protecting the brand's core values while exploring new opportunities for innovation [17] Other Important Information - The US Department of Justice dropped all charges against FAT Brands, the parent company, which is seen as a positive development [18] - Twin Peaks ranked 97th on the 2025 Technomic Top 500 list of the largest restaurant chains in the US [29] - The company raised over $100,000 for Texas flood relief efforts, highlighting its commitment to community support [29] Q&A Session Summary Question: What is the outlook for Smoky Bones over the next six months? - Management indicated there will be moderate changes, with minimal adjustments expected until performance assessments are completed [35][36] Question: What is the increase in General and Administrative (G&A) expenses attributed to? - The increase in G&A expenses was primarily due to equity grants following the public listing, which is expected to decrease significantly going forward [41][42] Question: Is there room for improvement in store-level margins? - Management expressed confidence in finding improvements in sales and bottom-line performance as the sports calendar improves [43][44]