Overview

* Portillo's Q2 revenue rises 3.6% yr/yr, but missing analysts' expectations

* Net income for Q2 increases 17.7% yr/yr, driven by tax adjustments

* Same-restaurant sales up 0.7% due to higher average checks

Outlook

* Portillo's updates fiscal 2025 revenue growth target to 5% to 7%

* Company plans to open 12 new restaurants in H2 2025

* Portillo's expects flat to low single-digit adjusted EBITDA growth in 2025

* Company focuses expansion in Sunbelt, entering Atlanta in H2 2025

Result Drivers

* NEW RESTAURANTS - Revenue growth driven by nine new restaurant openings in late 2024

* MENU PRICE INCREASES - Higher average check due to menu price increases to address inflationary pressures

* COMMODITY COSTS - Operating expenses impacted by 1.9% rise in commodity prices

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $188.50 $196.30

Revenue mln mln (10

Analysts

)

Q2 EPS $0.12

Q2 Net $10 mln

Income

Q2 Rest. $44.50

Level mln

Adj.

EBITDA

Q2 $144 mln

Operatin

g

Expenses

Q2 $17.50

Operatin mln

g Income

Q2 Rest. 23.6%

Level

Adj.

EBITDA

Margin

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)