Portillo’s (NASDAQ:PTLO) Posts Earnings Results

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

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 Stock Performance

Shares of PTLO stock traded up $0.14 on Wednesday, hitting $4.67. 1,320,631 shares of the stock traded hands, compared to its average volume of 1,031,588. The company’s fifty day moving average is $4.46 and its 200 day moving average is $5.04. Portillo’s has a 1-year low of $3.78 and a 1-year high of $8.21. The company has a market capitalization of $354.03 million, a PE ratio of 22.24, a PEG ratio of 0.84 and a beta of 1.56. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.26 and a quick ratio of 0.22.

Insiders Place Their Bets

In related news, Director Eugene I. Lee, Jr. acquired 70,165 shares of Portillo’s stock in a transaction that occurred on Monday, May 11th. The stock was acquired at an average price of $4.28 per share, for a total transaction of $300,306.20. Following the transaction, the director directly owned 486,415 shares of the company’s stock, valued at $2,081,856.20. This trade represents a 16.86% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 6.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Portillo’s

Several hedge funds have recently made changes to their positions in the business. BNP Paribas Financial Markets increased its holdings in shares of Portillo’s by 69.6% in the 2nd 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 during the period. Quadrant Capital Group LLC purchased a new stake in Portillo’s in the 4th quarter worth approximately $34,000. Tower Research Capital LLC TRC boosted its stake in shares of Portillo’s by 336.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,135 shares of the company’s stock valued at $95,000 after buying an additional 6,271 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Portillo’s during the 4th quarter valued at $40,000. Finally, CIBC Bancorp USA Inc. purchased a new position in shares of Portillo’s during the 3rd quarter valued at $67,000. Institutional investors and hedge funds own 98.34% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on PTLO shares. Piper Sandler lowered 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. Robert W. Baird set a $5.25 price objective on Portillo’s in a research report on Wednesday, May 6th. Morgan Stanley decreased their price target on Portillo’s from $7.00 to $6.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 6th. Stephens set a $5.00 target price on shares of Portillo’s in a research report on Tuesday, July 21st. Finally, Stifel Nicolaus decreased their price objective on Portillo’s from $6.00 to $5.00 and set a “hold” rating on the stock in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $5.92.

Portillo’s Company Profile

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.