Financial Data and Key Metrics Changes - Total revenue for Q1 reached $176.4 million, reflecting an increase of $10.6 million or 6.4% compared to the previous year [18][19] - Same restaurant sales increased by 1.8%, contributing approximately $2.6 million to revenue growth [20] - Restaurant level adjusted EBITDA was $36.7 million with a margin of 20.8%, a decrease of 110 basis points from the previous year [27] - Adjusted EBITDA for Q1 was $21.2 million, down 2.6% from the previous year [29] - General and administrative expenses increased to $18.9 million, representing 10.7% of revenue [28] Business Line Data and Key Metrics Changes - New restaurants not in the comparable base contributed $7.9 million in revenue growth [19] - The average check increased by 4.9%, partially offset by a 3.1% decrease in transactions [20] - The company plans to open 12 new restaurants this year, with 10 in the new Restaurant of the Future format [16] Market Data and Key Metrics Changes - The advertising campaign in Dallas Fort Worth increased brand awareness by about 10% and drove high single-digit sales increases [10] - The company is running a similar campaign in Phoenix to boost brand awareness [10] Company Strategy and Development Direction - The company is focusing on four key tactics: advertising beyond Chicagoland, launching the Portillo's Perks loyalty program, continuous operational improvements, and optimizing kiosks [9] - The loyalty program aims for a personalized, data-driven approach based on guest behavior, with a goal of 1.6 million sign-ups by mid-year [56] - The company is testing breakfast offerings in five Chicagoland restaurants, with positive early feedback [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro pressures but expressed confidence in the brand's resilience and strategies to drive traffic [17] - The company expects comp sales growth in the range of 1% to 3% and total revenue growth of 10% to 12% for the year [22][23] - Management noted that newer restaurants are experiencing slower starts but are optimistic about their long-term performance [23][54] Other Important Information - Food, beverage, and packaging costs as a percentage of revenues increased to 34.6% due to commodity price increases [24] - Labor costs as a percentage of revenues increased to 26.6%, driven by lower transactions and increased wage rates [25] - The company ended the quarter with $12.9 million in cash and plans to use cash generated from operations to fund new restaurant growth [32] Q&A Session Summary Question: Concerns about new restaurant performance in Houston - Management indicated that the slower performance is due to brand awareness and not operational issues, emphasizing a focus on field marketing to build awareness [38][39] Question: Impact of recent openings on revenue guidance - The widening of the revenue range is primarily related to the class of '24 openings rather than expectations for '25 [40][41] Question: Testing breakfast offerings - The breakfast test is being conducted quietly to ensure operational execution, with plans for broader marketing if successful [90] Question: Performance of new units and marketing strategies - Management noted that marketing efforts in Houston were less aggressive compared to Dallas, which contributed to slower starts [54][98] Question: Insights on the Portillo's Perks program - Initial metrics indicate strong guest responsiveness to offers, exceeding internal expectations [56][108]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $176.4 million, reflecting an increase of $10.6 million or 6.4% compared to the previous year [16] - Same restaurant sales increased by 1.8%, contributing approximately $2.6 million to revenue growth [17] - Restaurant level adjusted EBITDA was $36.7 million with a margin of 20.8%, a decrease of 110 basis points from the previous year [24] - Adjusted EBITDA decreased by 2.6% to $21.2 million compared to Q1 2024 [25] - General and administrative expenses increased to $18.9 million, representing 10.7% of revenue [25] Business Line Data and Key Metrics Changes - New restaurants not in the comparable base contributed $7.9 million to revenue growth [16] - The average check increased by 4.9%, driven by a 4.4% increase in menu prices [17] - Labor costs as a percentage of revenues increased to 26.6% due to lower transactions and increased wage rates [22] Market Data and Key Metrics Changes - The Dallas Fort Worth advertising campaign increased brand awareness by about 10% and drove high single-digit sales increases in that region [8] - Newer markets remain vulnerable until brand awareness is established, as seen in Houston [36] Company Strategy and Development Direction - The company plans to open 12 new restaurants in 2025, with 10 in the new Restaurant of the Future format [14] - The Portillo's Perks loyalty program aims to enhance customer engagement through personalized offers [9] - The company is focusing on operational excellence, including hospitality, speed, and accuracy [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures but expressed confidence in the brand's resilience and strategies [15] - The company expects comp sales growth to be in the range of 1% to 3% for the remainder of the year [19] - Commodity inflation is forecasted at 3% to 5% for 2025, with significant pressures from beef prices [21] Other Important Information - Cash from operations increased by 4.1% year over year to $9.5 million [28] - The effective interest rate decreased to 7% from 8.4% in 2024 [26] Q&A Session Summary Question: Concerns about new restaurant performance in Houston - Management indicated that the slower performance is due to brand awareness issues rather than operational problems, and they are increasing marketing efforts to build awareness [36] Question: Impact of recent openings on revenue guidance - The widening of the revenue range is primarily related to the class of '24 openings rather than expectations for '25 [38] Question: Update on breakfast test in Chicago - The breakfast test is being conducted quietly to ensure operational execution, with plans for broader marketing if successful [42][86] Question: Performance of new units and marketing strategies - Management noted that marketing efforts were less aggressive in Houston compared to Dallas, which contributed to slower initial performance [94] Question: Insights on the Portillo's Perks program - Initial metrics indicate strong guest responsiveness to offers, exceeding internal expectations [104]