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

Portillo’s (NASDAQ:PTLO) posted its earnings results on Wednesday. The company reported $0.09 earnings per share for the quarter, hitting the consensus estimate of $0.09, FiscalAI reports. The company had revenue of $198.95 million for the quarter, compared to analyst estimates of $199.22 million. Portillo’s had a net margin of 1.85% and a return on equity of 2.80%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the business posted $0.12 earnings per share.

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 PTLO stock traded up $0.04 during trading on Friday, hitting $4.42. The company had a trading volume of 544,145 shares, compared to its average volume of 1,674,467. The firm has a market capitalization of $335.23 million, a P/E ratio of 24.47, a price-to-earnings-growth ratio of 0.86 and a beta of 1.56. Portillo’s has a one year low of $3.78 and a one year high of $8.21. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.22 and a current ratio of 0.26. The stock’s 50-day moving average price is $4.46 and its 200 day moving average price is $5.03.

Analyst Ratings Changes

A number of research firms recently commented on PTLO. Roth Capital set a $8.00 price objective on shares of Portillo’s in a research report on Wednesday, May 6th. Morgan Stanley reduced their target price on Portillo’s from $7.00 to $6.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 6th. Guggenheim downgraded Portillo’s from a “buy” rating to a “neutral” rating in a report on Thursday, May 7th. Robert W. Baird set a $5.25 price objective on Portillo’s in a report on Wednesday, May 6th. Finally, Piper Sandler decreased their price objective on Portillo’s from $8.00 to $6.00 and set an “overweight” rating for the company in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $5.92.

Insider Buying and Selling at Portillo’s

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

Institutional Trading of Portillo’s

Several institutional investors and hedge funds have recently modified their holdings of PTLO. Cetera Investment Advisers boosted its holdings in shares of Portillo’s by 50.7% during the 4th quarter. Cetera Investment Advisers now owns 26,459 shares of the company’s stock valued at $120,000 after acquiring an additional 8,901 shares in the last quarter. Atom Investors LP acquired a new stake in shares of Portillo’s during the fourth quarter valued at about $115,000. &PARTNERS grew its holdings in shares of Portillo’s by 123.2% during the fourth quarter. &PARTNERS now owns 22,390 shares of the company’s stock worth $98,000 after purchasing an additional 12,360 shares during the last quarter. Cerity Partners LLC bought a new stake in shares of Portillo’s during the fourth quarter worth about $69,000. Finally, Sherbrooke Park Advisers LLC acquired a new position in shares of Portillo’s in the third quarter valued at approximately $93,000. 98.34% of the stock is currently owned by institutional investors.

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.