Portillo's (PTLO) investor relations material

Executive summary

• Fiscal 2025 revenue grew 3.0% year-over-year to $732.1 million, driven by new restaurant openings, but same-restaurant sales declined 0.5% due to lower transactions despite higher average check.

• Fourth quarter 2025 revenue increased 0.6% to $185.7 million, with net income of $6.3 million and operating income of $10.3 million; net income dropped 49.5% year-over-year.

• Adjusted EBITDA for Q4 2025 was $24.7 million (13.3% margin), and for the year was $97.3 million (13.3% margin).

• Strategic reset of development pace, slower new store openings, and operational focus, with Brett Patterson appointed CEO in February 2026.

• Over 2 million members enrolled in the Perks loyalty program, supporting targeted promotions and traffic.

Financial highlights

• Same-restaurant sales declined 3.3% in Q4 2025 and 0.5% for the full year; new restaurants contributed $27.4 million to revenue growth in 2025.

• Restaurant-Level Adjusted EBITDA for Q4 2025 was $40.6 million (21.8% margin); for the year, $158.4 million (21.6% margin).

• Food, beverage, and packaging costs rose to 34.6% of revenues due to 3.9%-4% commodity inflation, especially in beef and pork.

• Labor costs increased to 26% of revenues, up from 24.6% last year, due to lower transactions and wage increases.

• Net income margin for Q4 2025 was 3.4%, down from 6.7% in Q4 2024.

Outlook and guidance

• Fiscal 2026 targets: 8 new units, with 6 in the first half and 2 in the second half; capital expenditures projected at $55–$60 million.

• Restaurant-level Adjusted EBITDA margin expected at 20.5%-21%; adjusted EBITDA projected at $80–$82 million, flat versus 2025.

• Commodity inflation expected in the mid-single digits; labor inflation projected at 3%-3.5%.

• Positive free cash flow expected in 2026, with excess cash to be used for debt repayment.