Portillo's (PTLO) investor relations material

Executive summary

• Q2 2026 revenue rose 5.6% year-over-year to $199 million, driven by new restaurant openings, despite a 1.2% decline in same-restaurant sales and a 28.8% drop in net income to $7.2 million due to higher operating expenses and legal contingencies.

• Leadership transition included Kevin Kalicak joining as CFO and Christopher Hansen as Executive Chef, with an 18% reduction in corporate headquarters workforce and a reduction in force at HQ to streamline G&A.

• Strategic reset focused on operational excellence, integrated marketing, disciplined development, and cost optimization initiatives.

• Opened three new restaurants in Q2, including the first airport location at Dallas Fort Worth International, bringing the total to 109.

• Actions included G&A simplification, supply chain efficiency, and a revamped development model to support sustainable, profitable growth.

Financial highlights

• Q2 revenues reached $199 million, up 5.6% year-over-year, with $13.3 million contributed by new non-comp restaurants.

• Same-restaurant sales declined 1.2%, with a 3.4% drop in transactions partially offset by a 2.2% increase in average check.

• Net income for the quarter was $7.2 million, down $2.9 million or 28.8% year-over-year, with operating income dropping 21.4% to $13.8 million.

• Adjusted EBITDA was $29.8 million (15% of revenue), slightly below last year, and Restaurant-Level Adjusted EBITDA was $43.2 million (21.7% margin).

• Cash from operating activities rose 22.4% year-over-year to $35.1 million YTD; quarter-end cash was $21.3 million.

Outlook and guidance

• Updated 2026 Adjusted EBITDA guidance to $92 million–$96 million, with Restaurant-Level Adjusted EBITDA margin expected at 19.5–20.5%.

• Restaurant-level margin guidance lowered by 75 basis points at the midpoint, mainly due to non-comp restaurant underperformance and commodity inflation.

• Expect to open one more location in Q4, bringing 2026 total to eight new restaurants, and expand in Chicago and Wrigleyville in 2027.

• Anticipate annualized run rate savings of $10 million–$15 million from G&A, supply chain, and indirect spend initiatives.

• Capital expenditures projected at $55–$60 million; G&A expenses targeted at $78–$82 million.