Portillo’s (NASDAQ:PTLO) Announces Quarterly Earnings Results

Portillo’s (NASDAQ:PTLO) issued its earnings results on Tuesday. The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.05 by $0.03, FiscalAI reports. Portillo’s had a return on equity of 3.94% and a net margin of 2.64%.The company had revenue of $185.75 million during the quarter, compared to the consensus estimate of $185.50 million. During the same period in the previous year, the company posted $0.17 EPS. The firm’s revenue for the quarter was up .6% compared to the same quarter last year.

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

• Kennesaw launch and new unit strategy: The Atlanta restaurant (Kennesaw) exceeded $2M in sales in its first eight weeks (≈$3.8M in first 100 days) using the smaller 6,200 sq ft “Restaurant of the Future 1.0” prototype, supporting the reset to fewer, better-spaced openings focused on healthier unit economics.
• Same-store sales and margin pressure: Q4 same-restaurant sales fell 3.3% (transactions down 3.3%), company revenue was $185.7M (+0.6%), and Restaurant-Level Adjusted EBITDA fell to $40.6M with margins down ~270 bps year-over-year.
• Texas expansion remains a headwind: Rapid growth in Texas produced losses that depressed consolidated restaurant-level margins by ~180 bps in Q4 (170 bps for FY); management says targeted labor and operational fixes yielded slightly positive results late in the quarter but recovery is still in progress.
• Perks loyalty traction: The Perks program surpassed 2 million members and has driven strong promotional engagement; management expects it to help drive transactions in 2026, though offers may partially offset pricing benefits.
• 2026 outlook and capital plan: Company expects Adjusted EBITDA to be flat in 2026, restaurant-level EBITDA margins of 20.5%–21%, eight new restaurants, $55M–$60M capex, positive free cash flow and a plan to use excess cash to pay down the $334M net debt (with $20M cash on hand).

Portillo’s Stock Performance

Shares of NASDAQ:PTLO traded up $0.21 on Thursday, reaching $5.49. 189,973 shares of the company’s stock were exchanged, compared to its average volume of 2,152,921. Portillo’s has a twelve month low of $4.41 and a twelve month high of $14.47. The company has a fifty day moving average of $5.33 and a 200-day moving average of $5.71. The company has a market capitalization of $413.69 million, a price-to-earnings ratio of 20.33, a PEG ratio of 7.00 and a beta of 1.75. The company has a current ratio of 0.27, a quick ratio of 0.22 and a debt-to-equity ratio of 0.49.

Wall Street Analyst Weigh In

Several research firms have commented on PTLO. Morgan Stanley set a $7.00 price objective on shares of Portillo’s in a report on Tuesday, January 20th. Stifel Nicolaus restated a “hold” rating and set a $6.00 target price (down from $8.00) on shares of Portillo’s in a research note on Wednesday, January 7th. UBS Group decreased their price target on shares of Portillo’s from $6.00 to $5.50 and set a “neutral” rating on the stock in a research note on Tuesday, January 6th. Weiss Ratings reissued a “sell (d+)” rating on shares of Portillo’s in a report on Monday, December 22nd. Finally, Piper Sandler boosted their price objective on Portillo’s from $7.00 to $8.00 and gave the stock an “overweight” rating in a report on Friday, January 16th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Portillo’s has a consensus rating of “Hold” and a consensus target price of $7.72.

Hedge Funds Weigh In On Portillo’s

Hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Portillo’s by 5.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,550 shares of the company’s stock valued at $387,000 after acquiring an additional 1,808 shares in the last quarter. BNP Paribas Financial Markets raised its stake in Portillo’s by 69.6% in the second quarter. BNP Paribas Financial Markets now owns 5,426 shares of the company’s stock valued at $63,000 after purchasing an additional 2,227 shares in the last quarter. Osaic Holdings Inc. lifted its position in Portillo’s by 2.8% during the fourth quarter. Osaic Holdings Inc. now owns 103,579 shares of the company’s stock worth $470,000 after purchasing an additional 2,820 shares during the period. Price T Rowe Associates Inc. MD lifted its position in Portillo’s by 17.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 34,765 shares of the company’s stock worth $158,000 after purchasing an additional 5,109 shares during the period. Finally, First Trust Advisors LP grew its stake in Portillo’s by 2.5% during the fourth quarter. First Trust Advisors LP now owns 227,408 shares of the company’s stock worth $1,032,000 after buying an additional 5,593 shares in the last quarter. Institutional investors own 98.34% of the company’s stock.

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.