Portillo’s (NASDAQ:PTLO) Announces Earnings Results, Hits Expectations

Portillo’s (NASDAQ:PTLO) released its earnings results on Wednesday. The company reported $0.09 EPS for the quarter, hitting analysts’ consensus estimates of $0.09, FiscalAI reports. The company had revenue of $198.95 million during the quarter, compared to analysts’ expectations of $199.22 million. Portillo’s had a net margin of 2.12% and a return on equity of 3.17%. Portillo’s’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same period last year, the business earned $0.12 EPS.

Here are the key takeaways from Portillo’s’ conference call:

• Adjusted EBITDA guidance was reduced to $92 million-$96 million, reflecting weaker-than-expected performance at newer, non-comparable restaurants—particularly in Texas and Arizona—along with elevated commodity costs.
• Q2 revenue increased 5.6% to $199 million as new restaurants contributed growth, but same-restaurant sales declined 1.2% on a 3.4% transaction decline; restaurant-level EBITDA margin fell 190 basis points to 21.7% due primarily to food inflation and newer-unit underperformance.
• Management expects approximately $10 million-$15 million in annualized run-rate savings from corporate restructuring, supply-chain efficiencies, and indirect-spend reductions, with some benefits beginning in the third quarter.
• Same-restaurant sales were slightly positive early in Q3, while beef costs are largely protected by hedges—85% for Q3 and Q4—and management plans to use improving free cash flow to pay down debt and reduce revolver borrowings.
• Portillo’s is reassessing its development model after identifying excessive cannibalization, high build costs, and weak returns in parts of Texas; management expects four to six openings in 2027 and plans to launch a smaller, more efficient prototype in 2028.

Portillo’s Price Performance

Shares of NASDAQ:PTLO opened at $4.67 on Thursday. Portillo’s has a twelve month low of $3.78 and a twelve month high of $8.21. The company has a current ratio of 0.26, a quick ratio of 0.22 and a debt-to-equity ratio of 0.47. The company has a market cap of $354.03 million, a PE ratio of 22.24, a price-to-earnings-growth ratio of 0.84 and a beta of 1.56. The company’s 50 day moving average is $4.46 and its 200 day moving average is $5.04.

Insider Buying and Selling

In other Portillo’s news, Director Eugene I. Lee, Jr. acquired 70,165 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were acquired at an average cost of $4.28 per share, with a total value of $300,306.20. Following the acquisition, the director directly owned 486,415 shares of the company’s stock, valued at approximately $2,081,856.20. The trade was a 16.86% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 6.34% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Virtu Financial LLC acquired a new position in Portillo’s during the fourth quarter valued at $192,000. Invesco Ltd. grew its position in Portillo’s by 53.2% during the 4th quarter. Invesco Ltd. now owns 224,209 shares of the company’s stock worth $1,018,000 after purchasing an additional 77,852 shares during the period. Mercer Global Advisors Inc. ADV acquired a new stake in Portillo’s during the 4th quarter worth about $74,000. Empowered Funds LLC raised its stake in shares of Portillo’s by 11.2% during the 4th quarter. Empowered Funds LLC now owns 227,494 shares of the company’s stock valued at $1,033,000 after buying an additional 22,964 shares during the last quarter. Finally, Quadrature Capital Ltd purchased a new position in shares of Portillo’s during the 4th quarter valued at about $666,000. Hedge funds and other institutional investors own 98.34% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PTLO. Piper Sandler decreased their price target on shares of Portillo’s from $8.00 to $6.00 and set an “overweight” rating for the company in a report on Wednesday, May 6th. Guggenheim lowered shares of Portillo’s from a “buy” rating to a “neutral” rating in a report on Thursday, May 7th. Stifel Nicolaus cut their target price on Portillo’s from $6.00 to $5.00 and set a “hold” rating on the stock in a research report on Wednesday, May 6th. Robert W. Baird set a $5.25 target price on Portillo’s in a research note on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Portillo’s in a research report on Monday. Two investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Portillo’s presently has an average rating of “Hold” and an average price target of $5.92.

About Portillo’s

Portillo’s, Inc operates a fast‐casual restaurant chain best known for its Chicago‐style menu, featuring Italian beef sandwiches, Chicago‐style hot dogs, char‐grilled burgers, salads, crinkle‐cut fries and hand‐spun milkshakes. In addition to its signature sandwiches and dogs, the company offers a selection of desserts—including its famous chocolate cake and frozen custard—as well as catering services designed to bring its Midwestern flavors to corporate and social events.

The company was founded in 1963 by Dick Portillo, who opened the first Portillo’s in Villa Park, Illinois.