Overview

* Portillo's Q3 revenue rose 1.8% yr/yr but missed analyst expectations

* Same-restaurant sales decreased 0.8%, driven by lower transactions

* Net income for Q3 decreased by $8 mln yr/yr

Outlook

* Portillo's expects fiscal 2025 revenue between $730 mln and $733 mln

* Company projects fiscal 2025 same-restaurant sales decline of 1% to 1.5%

* Portillo's anticipates fiscal 2025 adjusted EBITDA of $90 mln to $94 mln

Result Drivers

* NEW RESTAURANTS - Revenue growth attributed to opening of new restaurants in 2024 and 2025

* SAME-RESTAURANT SALES DECLINE - Decrease driven by a 2.2% drop in transactions, partially offset by higher average check

* HIGHER OPERATING EXPENSES - Increase due to new restaurant openings and higher commodity and labor costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $181.40 $182.04

Revenue mln mln (9

Analysts

)

Q3 EPS $0.02

Q3 Net $800,000

Income

Q3 Rest. $36.70

Level mln

Adj.

EBITDA

Q3 $144.70

Operatin mln

g

Expenses

Q3 $5.40

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Portillos Inc ( PTLO ) is $8.00, about 34.5% above its November 3 closing price of $5.24

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)