Portillo’s (NASDAQ:PTLO) Posts Earnings Results, Misses Estimates By $0.02 EPS

Portillo’s (NASDAQ:PTLO) released its quarterly earnings data on Tuesday. The company reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.02), FiscalAI reports. The business had revenue of $182.62 million for the quarter, compared to the consensus estimate of $183.27 million. Portillo’s had a return on equity of 3.93% and a net margin of 2.64%.Portillo’s’s revenue was up 3.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.05 earnings per share.

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

• New CEO Brett Patterson outlined a three‑pillar strategy—operational excellence, integrated marketing, and disciplined development—and reiterated fiscal year guidance while prioritizing long‑term foundational work.
• CFO Michelle Hook is departing and the company has launched an immediate search with a national executive search firm, saying the move is consistent with its internal succession plan.
• First‑quarter revenue was $182.6 million (+3.5% YoY) driven by new restaurants, but same‑restaurant sales fell 0.1% and adjusted EBITDA declined to $18.5 million (10.1% of revenue), with restaurant‑level EBITDA margin down ~170 bps.
• Promotions and the Portillo’s Perks loyalty offers (e.g., Big Burger Bundle, LTOs) increased transactions and Perks penetration but reduced average check and net effective pricing, and April showed weaker trends as the company lapped prior promotions.
• Cost pressures from beef and produce and wage inflation pushed food/bev/packaging to 34.7% of revenue and labor to 26.9%, while net debt was about $347 million with $24 million cash, weighing on margins and capital flexibility.

Portillo’s Price Performance

Shares of PTLO traded down $0.89 during trading hours on Tuesday, hitting $4.83. The stock had a trading volume of 2,499,726 shares, compared to its average volume of 1,721,147. The company’s fifty day moving average is $5.59 and its two-hundred day moving average is $5.34. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.27 and a quick ratio of 0.22. Portillo’s has a 52 week low of $4.41 and a 52 week high of $13.55. The stock has a market capitalization of $364.64 million, a price-to-earnings ratio of 17.91, a P/E/G ratio of 1.79 and a beta of 1.72.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on PTLO shares. Morgan Stanley set a $7.00 price objective on shares of Portillo’s in a report on Tuesday, January 20th. Wolfe Research assumed coverage on shares of Portillo’s in a report on Monday, March 9th. They issued a “peer perform” rating on the stock. Stephens reaffirmed an “equal weight” rating and issued a $6.00 target price on shares of Portillo’s in a report on Tuesday. Piper Sandler upped their target price on shares of Portillo’s from $7.00 to $8.00 and gave the stock an “overweight” rating in a report on Friday, January 16th. Finally, UBS Group lowered their target price on shares of Portillo’s from $6.00 to $5.50 and set a “neutral” rating on the stock in a report on Tuesday, January 6th. Four investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $7.64.

Insider Buying and Selling

In related news, Director Eugene I. Lee, Jr. acquired 286,000 shares of the firm’s stock in a transaction on Friday, March 13th. The shares were purchased at an average price of $5.18 per share, with a total value of $1,481,480.00. Following the acquisition, the director directly owned 416,250 shares in the company, valued at $2,156,175. The trade was a 219.58% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. 6.34% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Portillo’s

A number of hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Portillo’s by 5.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,550 shares of the company’s stock worth $387,000 after acquiring an additional 1,808 shares during the last quarter. BNP Paribas Financial Markets grew its holdings in Portillo’s by 69.6% during the 2nd quarter. BNP Paribas Financial Markets now owns 5,426 shares of the company’s stock worth $63,000 after acquiring an additional 2,227 shares during the last quarter. Osaic Holdings Inc. grew its holdings in Portillo’s by 2.8% during the 4th quarter. Osaic Holdings Inc. now owns 103,579 shares of the company’s stock worth $470,000 after acquiring an additional 2,820 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Portillo’s by 17.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 34,765 shares of the company’s stock worth $158,000 after acquiring an additional 5,109 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in Portillo’s by 2.5% during the 4th quarter. First Trust Advisors LP now owns 227,408 shares of the company’s stock worth $1,032,000 after acquiring an additional 5,593 shares during the last quarter. Institutional investors own 98.34% of the company’s stock.

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.