Portillo’s Inc. Announces Second Quarter 2025 Financial Results
Portillo's (NASDAQ: PTLO) reported Q2 2025 financial results with total revenue of $188.5 million, up 3.6% year-over-year. The company achieved a same-restaurant sales increase of 0.7%, driven by a 2.1% higher average check but offset by a 1.4% decrease in transactions.
Net income reached $10.0 million, increasing 17.7% from Q2 2024, while operating income decreased 3.2% to $17.5 million. The company maintained 75 restaurants in its Comparable Restaurant Base and plans to open 12 new restaurants in the second half of 2025, focusing on Sunbelt expansion.
Management updated fiscal 2025 guidance, reducing revenue growth expectations to 5-7% from previous 10-12%, and adjusted EBITDA growth forecast to flat to low single-digits from the previous 5-8% target.
Portillo's (NASDAQ: PTLO) ha comunicato i risultati finanziari del secondo trimestre 2025 con un fatturato totale di 188,5 milioni di dollari, in crescita del 3,6% rispetto all'anno precedente. L'azienda ha registrato un aumento delle vendite nei ristoranti comparabili dello 0,7%, grazie a un incremento del 2,1% dello scontrino medio, parzialmente compensato da una diminuzione dell'1,4% delle transazioni.
L'utile netto ha raggiunto 10,0 milioni di dollari, con un aumento del 17,7% rispetto al secondo trimestre 2024, mentre l'utile operativo è sceso del 3,2% attestandosi a 17,5 milioni di dollari. L'azienda ha mantenuto 75 ristoranti nella sua base comparabile e prevede di aprire 12 nuovi ristoranti nella seconda metà del 2025, concentrandosi sull'espansione nella Sunbelt.
La direzione ha aggiornato le previsioni per il 2025, riducendo le aspettative di crescita dei ricavi al 5-7% rispetto al precedente 10-12%, e ha rivisto la crescita dell'EBITDA rettificato prevedendo una crescita stabile o a una cifra bassa, rispetto al precedente obiettivo del 5-8%.
Portillo's (NASDAQ: PTLO) informó los resultados financieros del segundo trimestre de 2025 con ingresos totales de 188,5 millones de dólares, un aumento del 3,6% interanual. La compañía logró un aumento de ventas en restaurantes comparables del 0,7%, impulsado por un incremento del 2,1% en el ticket promedio, compensado parcialmente por una disminución del 1,4% en las transacciones.
El ingreso neto alcanzó los 10,0 millones de dólares, aumentando un 17,7% respecto al segundo trimestre de 2024, mientras que el ingreso operativo disminuyó un 3,2% hasta 17,5 millones de dólares. La empresa mantuvo 75 restaurantes en su base comparable y planea abrir 12 nuevos restaurantes en la segunda mitad de 2025, enfocándose en la expansión en la Sunbelt.
La dirección actualizó las previsiones para 2025, reduciendo las expectativas de crecimiento de ingresos al 5-7% desde el 10-12% anterior, y ajustó la previsión de crecimiento del EBITDA ajustado a estable o de un solo dígito bajo desde el objetivo previo del 5-8%.
Portillo's (NASDAQ: PTLO)는 2025년 2분기 재무 결과를 발표하며 총 매출 1억 8,850만 달러를 기록해 전년 동기 대비 3.6% 증가했습니다. 회사는 동일 매장 매출이 0.7% 증가했으며, 이는 평균 주문 금액이 2.1% 상승한 데 힘입었으나 거래 건수는 1.4% 감소해 이를 일부 상쇄했습니다.
순이익은 1,000만 달러에 달해 2024년 2분기 대비 17.7% 증가했으며, 영업이익은 3.2% 감소한 1,750만 달러를 기록했습니다. 회사는 비교 대상 매장 수를 75개로 유지했으며 2025년 하반기에 12개의 신규 매장을 개설할 계획으로, Sunbelt 지역 확장에 집중하고 있습니다.
경영진은 2025 회계연도 가이던스를 업데이트하여 매출 성장 전망을 기존 10-12%에서 5-7%로 하향 조정했고, 조정 EBITDA 성장률 전망도 기존 5-8%에서 안정적이거나 낮은 한 자리 수 성장으로 조정했습니다.
Portillo's (NASDAQ : PTLO) a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires total de 188,5 millions de dollars, en hausse de 3,6 % sur un an. L'entreprise a enregistré une augmentation des ventes dans les restaurants comparables de 0,7 %, portée par une augmentation de 2,1 % du ticket moyen, partiellement compensée par une baisse de 1,4 % du nombre de transactions.
Le bénéfice net a atteint 10,0 millions de dollars, en hausse de 17,7 % par rapport au deuxième trimestre 2024, tandis que le résultat d'exploitation a diminué de 3,2 % pour s'établir à 17,5 millions de dollars. L'entreprise a maintenu 75 restaurants dans sa base comparable et prévoit d'ouvrir 12 nouveaux restaurants au second semestre 2025, en se concentrant sur l'expansion dans la région du Sunbelt.
La direction a mis à jour ses prévisions pour l'exercice 2025, réduisant les attentes de croissance du chiffre d'affaires à 5-7 % contre 10-12 % auparavant, et ajustant la prévision de croissance de l'EBITDA ajusté à une croissance stable ou à un faible chiffre à un chiffre, contre un objectif précédent de 5-8 %.
Portillo's (NASDAQ: PTLO) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Gesamtumsatz von 188,5 Millionen US-Dollar, was einem Anstieg von 3,6 % im Jahresvergleich entspricht. Das Unternehmen erzielte ein Umsatzwachstum in vergleichbaren Restaurants von 0,7 %, getrieben durch einen um 2,1 % höheren durchschnittlichen Bestellwert, der jedoch durch einen Rückgang der Transaktionen um 1,4 % ausgeglichen wurde.
Der Nettogewinn erreichte 10,0 Millionen US-Dollar, ein Anstieg von 17,7 % gegenüber dem zweiten Quartal 2024, während das Betriebsergebnis um 3,2 % auf 17,5 Millionen US-Dollar sank. Das Unternehmen hielt 75 Restaurants in seiner vergleichbaren Basis und plant, in der zweiten Hälfte des Jahres 2025 12 neue Restaurants zu eröffnen, mit Fokus auf die Expansion im Sunbelt.
Das Management aktualisierte die Prognose für das Geschäftsjahr 2025 und senkte die Umsatzerwartungen von zuvor 10-12 % auf 5-7 % und passte die Prognose für das bereinigte EBITDA-Wachstum von zuvor 5-8 % auf eine stabile bis geringe einstellige Wachstumsrate an.
- Net income increased 17.7% to $10.0 million year-over-year
- Same-restaurant sales grew 0.7%, with average check up 2.1%
- Successful menu price increases of 1.0% in April and 0.7% in June 2025
- Expansion plans include 12 new restaurant openings in H2 2025
- Restaurant-Level Adjusted EBITDA margin guidance maintained at 22.5% to 23%
- Operating income decreased 3.2% to $17.5 million
- Transaction count declined 1.4% year-over-year
- Revenue growth guidance reduced from 10-12% to 5-7% for fiscal 2025
- Adjusted EBITDA growth outlook lowered to flat to low single-digits from previous 5-8%
- Commodity prices increased 1.9% affecting food costs
Insights
Portillo's Q2 shows modest 0.7% same-store growth with declining traffic, facing headwinds despite maintaining margins and lowering guidance.
Portillo's Q2 results present a mixed financial picture with concerning underlying metrics. Total revenue increased
The composition of this growth is particularly troubling - transaction count declined
On the expense side, food costs rose due to
Net income improved
Most telling is management's significant reduction in 2025 guidance. Revenue growth expectations were slashed from
The company remains focused on expansion, with 12 planned openings in the second half of 2025, particularly in the Sunbelt and Atlanta, while testing new formats including its first in-line walk-up restaurant. This strategic evolution aims to counter the challenging traffic environment referenced by CEO Michael Osanloo.
OAK BROOK, Il., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the one-of-a-kind restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 29, 2025.
Second Quarter 2025 Performance Highlights (vs. Second Quarter 2024):
- Total revenue of
$188.5 million , an increase of3.6% or$6.6 million - Same-restaurant sales increase of +
0.7% - Operating income of
$17.5 million , a decrease of$0.6 million - Net income of
$10.0 million , an increase of$1.5 million - Restaurant-Level Adjusted EBITDA(1) of
$44.5 million , a decrease of$0.1 million - Adjusted EBITDA(1) of
$30.1 million , an increase of$0.2 million
(1) Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures accompanying this release.
“Our team operated well through a tough traffic environment in the second quarter, managing restaurant-level margins effectively and driving solid earnings,” said Michael Osanloo, President and Chief Executive Officer of Portillo’s. “We’re testing and learning, refining our new market playbook, and focused on continuous improvement to drive consistent sales, expand our restaurant footprint and deliver top-tier shareholder returns.”
Second Quarter 2025 Financial and Operating Results
Revenues for the quarter ended June 29, 2025 were
Total restaurant operating expenses for the second quarter ended June 29, 2025 were
General and administrative expenses for the quarter ended June 29, 2025 were
Operating income for the second quarter ended June 29, 2025 was
Net income for the second quarter ended June 29, 2025 was
Restaurant-Level Adjusted EBITDA* for the second quarter ended June 29, 2025 was
Adjusted EBITDA* for the second quarter ended June 29, 2025 was
*A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under “Non-GAAP Measures” in the accompanying financial data below.
Second Quarter 2025 Development Highlights
No new restaurants were opened during the quarter ended June 29, 2025. Subsequent to June 29, 2025, the Company opened one new restaurant in Tomball, Texas, bringing the total restaurant count to 95, which includes one restaurant owned by C&O of which Portillo’s owns
In the second half of 2025, the Company plans to open 12 new restaurants. The Company’s current focus continues to be in the Sunbelt, with plans to continue expanding in Texas as well as enter Atlanta in the second half of 2025. Additionally, the Company plans to open its first in-line, walk-up restaurant format later this year, while simultaneously filling in existing markets, including Chicagoland and adjacent territories as opportunities become available. All our restaurant openings in 2025 are expected to be restaurant of the future (“RoTF 1.0”), except one pick-up only and our first in-line walk-up restaurant. RoTF 1.0 is our 6,250 square foot prototype restaurant with a 47-foot production line that is more efficient to build and also better reflects the way consumers interact with our brand today.
Fiscal 2025 Financial Targets
Based on current expectations, management has updated financial targets for fiscal 2025 as follows:
| Prior Target | Updated Target | ||
| Unit growth | 12 new units | 12 new units | |
| Same-restaurant sales | |||
| Revenue growth | |||
| Commodity inflation | |||
| Labor inflation | |||
| Restaurant-level adjusted EBITDA margin* | |||
| General and administrative expenses | |||
| Pre-opening expenses | |||
| Adjusted EBITDA growth* | Flat to Low single-digits | ||
| Capital expenditures |
*We are unable to reconcile the financial target for adjusted EBITDA growth and restaurant-level adjusted EBITDA margin to net income/loss growth and operating income/loss margin, the respective corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.
Long-Term Financial Targets
| Annual unit growth | |
| Same-restaurant sales | Low single digits |
| Revenue growth | Mid teens |
| Adjusted EBITDA growth* | Low teens |
*We are unable to reconcile the long-term outlook for Adjusted EBITDA growth to net income/loss, the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.
The following definitions apply to these terms as used in this release:
Change in Same-Restaurant Sales - The change in same-restaurant sales is the percentage change in year-over-year revenue for the Comparable Restaurant Base, which is defined as the number of restaurants open for at least 24 full fiscal periods. For the quarters ended June 29, 2025 and June 30, 2024, there were 75 and 70 restaurants in our Comparable Restaurant Base, respectively.
A change in same-restaurant sales is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our change in same-restaurant sales allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company’s historical and prospective operating performance.
Average Unit Volume - AUV is the total revenue recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.
This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.
Adjusted EBITDA and Adjusted EBITDA Margin - Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.”
Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin - Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.”
For more information about the Company’s Non-GAAP measures, how they are calculated and reconciled and why management believes that they are useful, see “Non-GAAP Financial Measures” below.
Earnings Conference Call
The Company will host a conference call to discuss its financial results for the second quarter on Tuesday, August 5, 2025, at 10:00 AM ET. The conference call can be accessed live over the phone by dialing 877-407-3982. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 844-512-2921, and using passcode #13748477. The webcast replay will be available at investors.portillos.com shortly after the call has concluded.
About Portillo’s
Portillo’s (NASDAQ: PTLO) is a one-of-a-kind brand that has grown from a small hot dog trailer in Chicago to more than 90 restaurants across 10 states. Known for its unique menu of craveable Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and iconic chocolate cake, Portillo’s is beloved in both its home of Chicagoland and across new and growing markets. Portillo’s operates a company-owned model of not just restaurants – but experience-focused destinations that blend dine-in, drive-thru, takeout and delivery to serve our guests with the food they crave. And now, after six decades of success and counting, Portillo’s is on a mission to bring its iconic food and unforgettable dining experience to guests across the country.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business, and are based on currently available operating, financial and competitive information which are subject to various risks and uncertainties, so you should not place undue reliance on forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "commit," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following:
- risks related to or arising from our organizational structure;
- risks of food-borne illness and food safety and other health concerns about our food;
- risks relating to the economy and financial markets, including in relation to trade and tax policy changes and other macroeconomic uncertainty, including, inflation, fluctuating interest rates, stock market volatility, recession concerns, and other factors;
- the impact of unionization activities of our team members on our reputation, operations and profitability;
- risks associated with our reliance on certain information technology systems, including our new enterprise resource planning system, and potential failures or interruptions;
- risks associated with data, privacy, cyber security and the use and implementation of information technology systems, including our digital ordering and payment platforms for our delivery business;
- risks associated with increased adoption, implementation and use of artificial intelligence technologies across our business;
- the impact of competition, including from our competitors in the restaurant industry or our own restaurants;
- the increasingly competitive labor market and our ability to attract and retain the best talent and qualified employees;
- the impact of federal, state or local government regulations relating to privacy, data protection, advertising and consumer protection, building and zoning requirements, labor and employment matters, costs of or ability to open new restaurants, or the sale of food and alcoholic beverages;
- inability to achieve our growth strategy, such as the availability of suitable new restaurant sites in existing and new markets and opening of new restaurants at the anticipated rate and on the anticipated timeline;
- the impact of consumer sentiment and other economic factors on our sales;
- increases in food and other operating costs, tariffs and import taxes, and supply shortages; and
- other risks identified in our filings with the Securities and Exchange Commission (the “SEC”).
All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s most recent Annual Report on Form 10-K, filed with the SEC. All of the Company’s SEC filings are available on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Investor Contact:
Chris Brandon, Vice President of Investor Relations
312.931.5578
cbrandon@portillos.com
Media Contact:
Sara Wirth, Director of Communications & PR
press@portillos.com
| PORTILLO’S INC CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except common share and per common share data) | |||||||||||||||||||||||||||
| Quarter Ended | Two Quarters Ended | ||||||||||||||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||||||||||||||
| REVENUES, NET | $ | 188,456 | 100.0 | % | $ | 181,862 | 100.0 | % | $ | 364,893 | 100.0 | % | $ | 347,693 | 100.0 | % | |||||||||||
| COST AND EXPENSES: | |||||||||||||||||||||||||||
| Restaurant operating expenses: | |||||||||||||||||||||||||||
| Food, beverage and packaging costs | 63,750 | 33.8 | % | 61,712 | 33.9 | % | 124,852 | 34.2 | % | 118,673 | 34.1 | % | |||||||||||||||
| Labor | 48,340 | 25.7 | % | 46,412 | 25.5 | % | 95,208 | 26.1 | % | 89,714 | 25.8 | % | |||||||||||||||
| Occupancy | 9,966 | 5.3 | % | 9,211 | 5.1 | % | 19,987 | 5.5 | % | 18,551 | 5.3 | % | |||||||||||||||
| Other operating expenses | 21,919 | 11.6 | % | 19,958 | 11.0 | % | 43,709 | 12.0 | % | 39,815 | 11.5 | % | |||||||||||||||
| Total restaurant operating expenses | 143,975 | 76.4 | % | 137,293 | 75.5 | % | 283,756 | 77.8 | % | 266,753 | 76.7 | % | |||||||||||||||
| General and administrative expenses | 18,798 | 10.0 | % | 17,941 | 9.9 | % | 37,701 | 10.3 | % | 36,481 | 10.5 | % | |||||||||||||||
| Pre-opening expenses | 1,697 | 0.9 | % | 2,100 | 1.2 | % | 2,205 | 0.6 | % | 3,523 | 1.0 | % | |||||||||||||||
| Depreciation and amortization | 7,137 | 3.8 | % | 7,106 | 3.9 | % | 14,177 | 3.9 | % | 14,050 | 4.0 | % | |||||||||||||||
| Net income attributable to equity method investment | (382 | ) | (0.2)% | (335 | ) | (0.2)% | (546 | ) | (0.1)% | (540 | ) | (0.2)% | |||||||||||||||
| Other income, net | (300 | ) | (0.2)% | (358 | ) | (0.2)% | (312 | ) | (0.1)% | (786 | ) | (0.2)% | |||||||||||||||
| OPERATING INCOME | 17,531 | 9.3 | % | 18,115 | 10.0 | % | 27,912 | 7.6 | % | 28,212 | 8.1 | % | |||||||||||||||
| Interest expense | 5,726 | 3.0 | % | 6,603 | 3.6 | % | 11,475 | 3.1 | % | 13,133 | 3.8 | % | |||||||||||||||
| Interest income | (79 | ) | — | % | (75 | ) | — | % | (150 | ) | — | % | (154 | ) | — | % | |||||||||||
| Tax Receivable Agreement liability adjustment | (1,838 | ) | (1.0)% | (439 | ) | (0.2)% | (2,485 | ) | (0.7)% | (1,000 | ) | (0.3)% | |||||||||||||||
| INCOME BEFORE INCOME TAXES | 13,722 | 7.3 | % | 12,026 | 6.6 | % | 19,072 | 5.2 | % | 16,233 | 4.7 | % | |||||||||||||||
| Income tax expense | 3,679 | 2.0 | % | 3,496 | 1.9 | % | 5,039 | 1.4 | % | 2,359 | 0.7 | % | |||||||||||||||
| NET INCOME | 10,043 | 5.3 | % | 8,530 | 4.7 | % | 14,033 | 3.8 | % | 13,874 | 4.0 | % | |||||||||||||||
| Net income attributable to non-controlling interests | 1,339 | 0.7 | % | 2,060 | 1.1 | % | 2,016 | 0.6 | % | 2,842 | 0.8 | % | |||||||||||||||
| NET INCOME ATTRIBUTABLE TO PORTILLO'S INC. | $ | 8,704 | 4.6 | % | $ | 6,470 | 3.6 | % | $ | 12,017 | 3.3 | % | $ | 11,032 | 3.2 | % | |||||||||||
| Income per common share attributable to Portillo’s Inc.: | |||||||||||||||||||||||||||
| Basic | $ | 0.13 | $ | 0.10 | $ | 0.18 | $ | 0.19 | |||||||||||||||||||
| Diluted | $ | 0.12 | $ | 0.10 | $ | 0.18 | $ | 0.18 | |||||||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||||||
| Basic | 67,595,224 | 61,650,118 | 65,716,582 | 59,543,950 | |||||||||||||||||||||||
| Diluted | 69,867,802 | 64,608,698 | 68,174,864 | 62,577,748 | |||||||||||||||||||||||
| PORTILLO’S INC. CONSOLIDATED BALANCE SHEETS (in thousands, except common share and per common share data) | |||||
| June 29, 2025 | December 29, 2024 | ||||
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents and restricted cash | $ | 16,621 | $ | 22,876 | |
| Accounts and tenant improvement receivables | 17,669 | 14,794 | |||
| Inventories | 10,098 | 7,915 | |||
| Prepaid expenses | 5,905 | 7,066 | |||
| Total current assets | 50,293 | 52,651 | |||
| Property and equipment, net | 384,883 | 358,975 | |||
| Operating lease assets | 243,220 | 222,390 | |||
| Goodwill | 394,298 | 394,298 | |||
| Trade names | 223,925 | 223,925 | |||
| Other intangible assets, net | 24,745 | 26,098 | |||
| Equity method investment | 15,538 | 16,056 | |||
| Deferred tax assets | 209,051 | 197,409 | |||
| Other assets | 7,777 | 8,284 | |||
| Total other assets | 875,334 | 866,070 | |||
| TOTAL ASSETS | $ | 1,553,730 | $ | 1,500,086 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Accounts payable | $ | 43,683 | $ | 45,516 | |
| Current portion of long-term debt | 6,250 | 11,250 | |||
| Short-term debt | 70,000 | 25,000 | |||
| Current portion of Tax Receivable Agreement liability | 9,177 | 7,686 | |||
| Deferred revenue | 4,970 | 7,032 | |||
| Short-term operating lease liabilities | 6,458 | 6,013 | |||
| Accrued expenses | 30,730 | 33,072 | |||
| Total current liabilities | 171,268 | 135,569 | |||
| LONG-TERM LIABILITIES: | |||||
| Long-term debt, net of current portion | 240,758 | 275,422 | |||
| Tax Receivable Agreement liability | 343,717 | 316,893 | |||
| Long-term operating lease liability | 306,692 | 278,540 | |||
| Other long-term liabilities | 3,498 | 3,559 | |||
| Total long-term liabilities | 894,665 | 874,414 | |||
| Total liabilities | 1,065,933 | 1,009,983 | |||
| COMMITMENTS AND CONTINGENCIES | |||||
| STOCKHOLDERS’ EQUITY: | |||||
| Preferred stock, | — | — | |||
| Class A common stock, | 719 | 637 | |||
| Class B common stock, | — | — | |||
| Additional paid-in-capital | 403,068 | 357,295 | |||
| Retained earnings | 55,146 | 43,129 | |||
| Total stockholders' equity attributable to Portillo's Inc. | 458,933 | 401,061 | |||
| Non-controlling interest | 28,864 | 89,042 | |||
| Total stockholders' equity | 487,797 | 490,103 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,553,730 | $ | 1,500,086 | |
| PORTILLO’S INC CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
| Two Quarters Ended | |||||||
| June 29, 2025 | June 30, 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 14,033 | $ | 13,874 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 14,177 | 14,050 | |||||
| Amortization of debt issuance costs and discount | 349 | 380 | |||||
| Loss on sales of assets | 142 | 66 | |||||
| Equity-based compensation | 4,608 | 5,717 | |||||
| Deferred income tax expense | 5,039 | 2,359 | |||||
| Tax Receivable Agreement liability adjustment | (2,485 | ) | (1,000 | ) | |||
| Gift card breakage | (502 | ) | (502 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivables | 180 | (681 | ) | ||||
| Receivables from related parties | (16 | ) | (158 | ) | |||
| Inventories | (2,183 | ) | (22 | ) | |||
| Other current assets | 1,161 | 1,916 | |||||
| Operating lease asset | 4,557 | 4,461 | |||||
| Accounts payable | (7,439 | ) | 6,833 | ||||
| Accrued expenses and other liabilities | (3,984 | ) | (6,365 | ) | |||
| Operating lease liabilities | (1,607 | ) | (1,908 | ) | |||
| Deferred lease incentives | 1,586 | 2,101 | |||||
| Other assets and liabilities | 1,077 | 507 | |||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 28,693 | 41,628 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchase of property and equipment | (33,081 | ) | (33,905 | ) | |||
| Proceeds from the sale of property and equipment | 5 | 77 | |||||
| NET CASH USED IN INVESTING ACTIVITIES | (33,076 | ) | (33,828 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from short-term debt, net | 45,000 | 2,000 | |||||
| Payments of long-term debt | (38,750 | ) | (3,750 | ) | |||
| Proceeds from equity offering, net of underwriting discounts | — | 114,960 | |||||
| Repurchase of outstanding equity / Portillo's OpCo units | — | (114,960 | ) | ||||
| Distributions paid to non-controlling interest holders | (1,291 | ) | (838 | ) | |||
| Proceeds from stock option exercises | 2,727 | 1,109 | |||||
| Employee withholding taxes related to net settled equity awards | (887 | ) | (279 | ) | |||
| Proceeds from Employee Stock Purchase Plan purchases | 278 | 306 | |||||
| Payments of Tax Receivable Agreement liability | (7,686 | ) | (4,429 | ) | |||
| Payment of deferred financing costs | (1,263 | ) | — | ||||
| NET CASH USED IN FINANCING ACTIVITIES | (1,872 | ) | (5,881 | ) | |||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (6,255 | ) | 1,919 | ||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD | 22,876 | 10,438 | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD | $ | 16,621 | $ | 12,357 | |||
| PORTILLO’S INC SELECTED OPERATING DATA AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| Quarter Ended | Two Quarters Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||
| Total Restaurants (a) | 94 | 86 | 94 | 86 | |||||||||||
| AUV (in millions) (a) | N/A | N/A | $ | 8.7 | $ | 9.0 | |||||||||
| Change in same-restaurant sales (b)(c) | 0.7 | % | (0.6)% | 1.2 | % | (0.9 | )% | ||||||||
| Adjusted EBITDA (in thousands) (b) | $ | 30,064 | $ | 29,866 | $ | 51,274 | $ | 51,643 | |||||||
| Adjusted EBITDA Margin (b) | 16.0 | % | 16.4 | % | 14.1 | % | 14.9 | % | |||||||
| Restaurant-Level Adjusted EBITDA (in thousands) (b) | $ | 44,481 | $ | 44,569 | $ | 81,137 | $ | 80,940 | |||||||
| Restaurant-Level Adjusted EBITDA Margin (b) | 23.6 | % | 24.5 | % | 22.2 | % | 23.3 | % | |||||||
(a) Includes a restaurant that is owned by C&O of which Portillo’s owns
(b) Excludes C&O.
(c) For the quarter ended June 30, 2024, same-restaurant sales compares the 13 weeks from April 1, 2024 through June 30, 2024 to the 13 weeks from April 3, 2023 through July 2, 2023. For the two quarters ended June 30, 2024, same-restaurant sales compares the 26 weeks from January 1, 2024 through June 30, 2024 to the 26 weeks from January 2, 2023 through July 2, 2023
PORTILLO’S INC.
NON-GAAP FINANCIAL MEASURES
To supplement the consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA Margin, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. Accordingly, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are not required by, nor presented in accordance with GAAP, but rather are supplemental measures of operating performance of our restaurants. You should be aware that these measures are not indicative of overall results for the Company and that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. These measures are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. These measures are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate, but also have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues.
We use Adjusted EBITDA and Adjusted EBITDA Margin (i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management’s performance when determining incentive compensation.
We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance.
We are unable to reconcile the long-term outlook for Adjusted EBITDA to net income (loss), the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.
Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin
Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include cost of goods sold (excluding depreciation and amortization), labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenue.
We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate.
See below for a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA and Adjusted EBITDA Margin (in thousands):
| Quarter Ended | Two Quarters Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||
| Net income | $ | 10,043 | $ | 8,530 | $ | 14,033 | $ | 13,874 | |||||||
| Net income margin | 5.3 | % | 4.7 | % | 3.8 | % | 4.0 | % | |||||||
| Depreciation and amortization | 7,137 | 7,106 | 14,177 | 14,050 | |||||||||||
| Interest expense | 5,726 | 6,603 | 11,475 | 13,133 | |||||||||||
| Interest income | (79 | ) | (75 | ) | (150 | ) | (154 | ) | |||||||
| Income tax expense | 3,679 | 3,496 | 5,039 | 2,359 | |||||||||||
| EBITDA | 26,506 | 25,660 | 44,574 | 43,262 | |||||||||||
| Deferred rent (1) | 1,541 | 1,296 | 2,917 | 2,466 | |||||||||||
| Equity-based compensation | 2,658 | 2,890 | 4,608 | 5,717 | |||||||||||
| Cloud-based software implementation costs (2) | 84 | 325 | 267 | 450 | |||||||||||
| Amortization of cloud-based software implementation costs (3) | 295 | 146 | 514 | 146 | |||||||||||
| Other loss (income) (4) | 82 | (9 | ) | 143 | 66 | ||||||||||
| Transaction-related fees and expenses (5) | 736 | (3 | ) | 736 | 536 | ||||||||||
| Tax Receivable Agreement liability adjustment (6) | (1,838 | ) | (439 | ) | (2,485 | ) | (1,000 | ) | |||||||
| Adjusted EBITDA | $ | 30,064 | $ | 29,866 | $ | 51,274 | $ | 51,643 | |||||||
| Adjusted EBITDA Margin (7) | 16.0 | % | 16.4 | % | 14.1 | % | 14.9 | % | |||||||
(1) Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.
(2) Represents non-capitalized third party consulting and software licensing costs incurred in connection with the implementation of a new ERP and HCM systems which are included within general and administrative expenses.
(3) Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.
(4) Represents loss (gain) on disposal of property and equipment included within other income, net.
(5) Represents certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees included within general and administrative expenses.
(6) Represents remeasurement of the Tax Receivable Agreement liability.
(7) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.
See below for a reconciliation of operating income, the most directly comparable GAAP measure, to Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin (in thousands):
| Quarter Ended | Two Quarters Ended | ||||||||||||||
| June 29, 2025 | June 30, 2024 | June 29, 2025 | June 30, 2024 | ||||||||||||
| Operating income | $ | 17,531 | $ | 18,115 | $ | 27,912 | $ | 28,212 | |||||||
| Operating income margin | 9.3 | % | 10.0 | % | 7.6 | % | 8.1 | % | |||||||
| Plus: | |||||||||||||||
| General and administrative expenses | 18,798 | 17,941 | 37,701 | 36,481 | |||||||||||
| Pre-opening expenses | 1,697 | 2,100 | 2,205 | 3,523 | |||||||||||
| Depreciation and amortization | 7,137 | 7,106 | 14,177 | 14,050 | |||||||||||
| Net income attributable to equity method investment | (382 | ) | (335 | ) | (546 | ) | (540 | ) | |||||||
| Other income, net | (300 | ) | (358 | ) | (312 | ) | (786 | ) | |||||||
| Restaurant-Level Adjusted EBITDA | $ | 44,481 | $ | 44,569 | $ | 81,137 | $ | 80,940 | |||||||
| Restaurant-Level Adjusted EBITDA Margin (1) | 23.6 | % | 24.5 | % | 22.2 | % | 23.3 | % | |||||||
(1) Restaurant-Level Adjusted EBITDA Margin is defined as Restaurant-Level Adjusted EBITDA divided by Revenues, net.
FAQ
What were Portillo's (PTLO) key financial results for Q2 2025?
How many new restaurants is Portillo's planning to open in 2025?
What is Portillo's updated revenue guidance for fiscal 2025?
How did Portillo's same-restaurant sales perform in Q2 2025?
What pricing actions did Portillo's take in Q2 2025?
