Portillo鈥檚 Provides Business Update Highlighting Development Priorities and Simplification Efforts
Portillo's (NASDAQ: PTLO) announced a strategic reset of its growth and development plans, focusing on core markets and unit economics. The company provided an updated business outlook, projecting same-restaurant sales decline of (2.0%) to (2.5%) for Q3 2025.
The company revised its fiscal 2025 targets, reducing new unit openings from 12 to 8, updating same-restaurant sales guidance to (1%) to (1.5%), and projecting revenues of $730-733 million. Restaurant-level adjusted EBITDA margin is expected at 21.0% to 21.5%, with adjusted EBITDA of $94-98 million.
For fiscal 2026, Portillo's plans to open 8 new restaurants, including its first airport location at DFW, with projected net build costs averaging below $5 million per unit.
Portillo's (NASDAQ: PTLO) ha annunciato una rimodulazione strategica dei piani di crescita e sviluppo, concentrandosi sui mercati principali e sull'economia per unit脿. La societ脿 ha fornito un aggiornamento delle prospettive operative, prevedendo un calo delle vendite same-restaurant del (2,0%) al (2,5%) per il terzo trimestre del 2025.
Per il 2025 fiscale, ha rivisto gli obiettivi riducendo le aperture di nuove unit脿 da 12 a 8, aggiornando la guidance sulle vendite same-restaurant a (1%) a (1,5%) e stimando ricavi per $730-733 milioni. Il margine adjusted EBITDA a livello di ristorante 猫 ora previsto tra il 21,0% e il 21,5%, con un adjusted EBITDA di $94-98 milioni.
Per il 2026 fiscale, Portillo's prevede di aprire 8 nuovi ristoranti, inclusa la prima sede in aeroporto al DFW, con costi netti medi di costruzione per unit脿 inferiori a $5 milioni.
Portillo's (NASDAQ: PTLO) anunci贸 un reajuste estrat茅gico de sus planes de crecimiento y desarrollo, centr谩ndose en los mercados clave y en la econom铆a por unidad. La compa帽铆a ofreci贸 una actualizaci贸n de su perspectiva, proyectando una ca铆da de ventas same-restaurant del (2,0%) al (2,5%) para el tercer trimestre de 2025.
Revis贸 sus objetivos para el a帽o fiscal 2025, reduciendo nuevas aperturas de 12 a 8, ajustando la gu铆a de ventas same-restaurant a (1%) a (1,5%) y proyectando ingresos de $730-733 millones. Se espera que el margen de EBITDA ajustado a nivel de restaurante sea del 21,0% al 21,5%, con un EBITDA ajustado de $94-98 millones.
Para el fiscal 2026, Portillo's planea abrir 8 nuevos restaurantes, incluyendo su primera ubicaci贸n en aeropuerto en DFW, con costos netos de construcci贸n por unidad promedio por debajo de $5 millones.
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2025 須岅硠鞐半弰 氇╉憸毳� 靾橃爼頃橃棳 鞁犼窚 鞓ろ攬鞚� 12臧滌棎靹� 8臧�搿� 欷勳榾瓿�, 霃欖澕 毵れ灔 毵れ稖 臧�鞚措崢鞀るゼ (1%)鞐愳劀 (1.5%)搿� 臁办爼頄堨溂氅� 毵れ稖鞚� $730-733氚彪鞙茧 鞝勲頄堨姷雼堧嫟. 鞝愴彫 靾橃鞚� 臁办爼 EBITDA 毵堨鞚� 21.0%~21.5%搿� 鞓堨儊霅橂┌, 臁办爼 EBITDA電� $94-98氚彪鞙茧 於旍爼霅╇媹雼�.
2026 須岅硠鞐半弰鞐愲姅 Portillo's臧� 8臧� 鞁犼窚 霠堨姢韱犽瀾鞚� 鞐� 瓿勴殟鞚措┌, DFW 瓿淀暛鞐� 觳� 瓿淀暛 毵れ灔鞚� 韽暔頃橁碃 鞙犽嫑雼� 靾滉贝靹る箘鞖� 韽夑窢鞚� $5氚彪 氙鸽鞙茧 鞓堨儊霅╇媹雼�.
Portillo's (NASDAQ: PTLO) a annonc茅 un recentrage strat茅gique de ses plans de croissance et de d茅veloppement, en se concentrant sur ses march茅s cl茅s et la rentabilit茅 par unit茅. La soci茅t茅 a communiqu茅 des perspectives mises 脿 jour, anticipant une baisse des ventes same-restaurant de (2,0%) 脿 (2,5%) pour le troisi猫me trimestre 2025.
Pour l'exercice 2025, elle a r茅vis茅 ses objectifs en r茅duisant les ouvertures nettes de 12 脿 8, en ajustant sa guidance sur les ventes same-restaurant 脿 (1%) 脿 (1,5%) et en projetant un chiffre d'affaires de 730鈥�733 M$. La marge EBITDA retrait茅e au niveau restaurant devrait se situer entre 21,0% et 21,5%, avec un EBITDA retrait茅 de 94鈥�98 M$.
Pour l'exercice 2026, Portillo's pr茅voit d'ouvrir 8 nouveaux restaurants, dont son premier emplacement en a茅roport 脿 DFW, avec des co没ts nets de construction par unit茅 en moyenne inf茅rieurs 脿 5 M$.
Portillo's (NASDAQ: PTLO) gab eine strategische Neuausrichtung seiner Wachstums- und Entwicklungspl盲ne bekannt und legt den Fokus auf Kernm盲rkte sowie die Wirtschaftlichkeit pro Einheit. Das Unternehmen ver枚ffentlichte einen aktualisierten Ausblick und prognostiziert f眉r das dritte Quartal 2025 einen R眉ckgang der Same-Restaurant-Ums盲tze um (2,0%) bis (2,5%).
F眉r das Gesch盲ftsjahr 2025 wurden die Ziele angepasst: Die Neuer枚ffnungen wurden von 12 auf 8 reduziert, die Guidance f眉r Same-Restaurant-Ums盲tze auf (1%) bis (1,5%) aktualisiert und ein Umsatz von $730鈥�733 Millionen prognostiziert. Die bereinigte EBITDA-Marge auf Restaurantebene wird voraussichtlich bei 21,0% bis 21,5% liegen, das bereinigte EBITDA bei $94鈥�98 Millionen.
F眉r das Gesch盲ftsjahr 2026 plant Portillo's die Er枚ffnung von 8 neuen Restaurants, darunter den ersten Standort an einem Flughafen (DFW), mit durchschnittlichen Netto-Baukosten pro Einheit unter $5 Millionen.
- Reduction in general and administrative expenses from $78-80M to $72-75M
- Lower pre-opening expenses reduced to approximately $9M from $11-12M
- Strategic focus on core markets and unit economics optimization
- Reduced average build costs to under $5M per new restaurant
- Same-restaurant sales guidance reduced to negative (1%) to (1.5%) for 2025
- Q3 2025 same-restaurant sales expected to decline (2.0%) to (2.5%)
- Reduction in new unit growth from 12 to 8 units in 2025
- Restaurant-level adjusted EBITDA margin lowered to 21.0-21.5% from 22.5-23%
Insights
Portillo's reset reveals declining sales, reduced expansion, and margin pressure, signaling challenges ahead despite efforts to stabilize operations.
Portillo's strategic reset represents a significant pullback from previous growth ambitions, with the company cutting its 2025 new restaurant openings from 12 to 8 units and maintaining this reduced pace into 2026. This slowdown coincides with concerning negative same-restaurant sales guidance of -1% to -1.5% for fiscal 2025, a substantial downward revision from the previous +1% to +3% outlook.
The current quarter's performance is even more concerning, with same-restaurant sales tracking at -2.0% to -2.5%, indicating accelerating traffic challenges. This likely reflects both broader industry headwinds and potential competitive pressures in Portillo's core markets.
Revenue projections now call for approximately $730-733 million, while restaurant-level adjusted EBITDA margins are expected to contract significantly to 21.0%-21.5% from the previously guided 22.5%-23%. This 150-basis-point margin deterioration suggests meaningful operational deleverage from the sales decline.
Management's focus on simplification (including discontinuing their Chicago breakfast pilot) and their emphasis on reaching positive free cash flow in 2026 signals a defensive posture. The company is clearly pivoting from an aggressive growth strategy to one centered on stabilizing operations and preserving capital.
The reduced average build cost of under $5 million for 2026 restaurants represents a positive efficiency gain, though this comes with the trade-off of substantially slower expansion. This reset suggests management recognizes the need to solidify unit economics before resuming more aggressive growth.
Management Updates Guidance and Provides Current Third Quarter SRS Performance
OAK BROOK, Ill., Sept. 10, 2025 (GLOBE NEWSWIRE) -- Portillo鈥檚 (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced a strategic reset of its development and growth plans to sharpen focus on its core markets, enhance unit economics, and position the company for sustained success.
Michael Osanloo, Portillo鈥檚 President and CEO:
鈥淎s we advance Portillo鈥檚 growth strategy, two priorities stand out. First, driving sustainable traffic through consistent service and value. And second, disciplined development with restaurants designed for strong unit economics, attractive four-wall returns, and efficient capital deployment that will fuel long-term growth.
The initiatives we announced today directly align with these priorities and are anchored by four clear goals:
- Drive transactions by reinforcing value and service.
- Simplify operations, including the discontinuation of our Chicago breakfast pilot.
- Sharpen focus with a more measured pace of new restaurant growth.
- Optimize capital deployment to position Portillo鈥檚 for positive free cash flow in 2026.
We are confident in our strategy and our ability to execute. Our team remains fully committed to creating long-term shareholder value while delivering a one-of-a-kind experience for both new and loyal Portillo鈥檚 guests.鈥�
Updated Fiscal 2025 Financial Targets
The company expects same-restaurant sales for the third quarter ended September 28, 2025 to be in the range of (
Based on current expectations, management has updated financial targets for fiscal 2025 as follows. Any items not updated below remain the same as those provided on August 5, 2025.
| 听 | Prior Target | 听 | Updated Target |
| Unit growth | 12 new units | 听 | 8 new units |
| Same-restaurant sales* | 听 | ( | |
| Revenues** | 听 | ||
| Restaurant-level adjusted EBITDA marginicles/ebitda-vs-operating-income" title="Read: EBITDA vs Operating Income: Key Differences Every Investor Should Know" class="article-link" rel="noopener">EBITDA margin** | 听 | ||
| General and administrative expenses | 听 | ||
| Pre-opening expenses | 听 | Approximately | |
| Adjusted EBITDA** | Flat to Low single-digits | 听 | |
| *Our expected same-restaurant sales for the third quarter ended September 28, 2025, are an estimate based on information available to management as of the date of this release, and are subject to further changes upon completion of the company鈥檚 standard quarter end closing procedures. **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. Prior targets for revenues and Adjusted EBITDA represented growth percentages. | |||
| 听 | 听 | 听 | 听 |
Fiscal 2026 Development Outlook
Management expects to open 8 restaurants in fiscal 2026, which includes the company鈥檚 first airport location (DFW). The net build cost average for these 8 restaurants is projected to be less than
About Portillo鈥檚
Portillo鈥檚 (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鈥檚 is beloved in both its home of Chicagoland and across new and growing markets. Portillo鈥檚 operates a company-owned model of not just restaurants 鈥� 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鈥檚 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. 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 鈥淪EC鈥�).
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鈥檚 most recent Annual Report on Form 10-K, filed with the SEC. All of the Company鈥檚 SEC filings are available on the SEC鈥檚 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
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Media Contact:
Sara Wirth, Director of PR & Communications
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FAQ
What are Portillo's (PTLO) revised same-restaurant sales expectations for Q3 2025?
How many new restaurants will Portillo's open in 2025 and 2026?
What is Portillo's updated revenue guidance for fiscal 2025?
How much will Portillo's new restaurant builds cost in 2026?
What are the key strategic priorities announced in Portillo's business update?
