Portillo's (PTLO) Baird 2024 Global Consumer, Technology, & Services Conference summary

Brand overview and market positioning

• Focus on craveable, high-quality food, including Italian beef, hot dogs, burgers, and salads, with top 20 locations selling $1M+ in salads.

• Multi-channel approach includes double-lane drive-throughs, robust delivery, and catering.

• 60-year-old brand with strong Net Promoter Scores and loyal customer base across markets.

Growth strategy and targets

• Expansion targets high-growth Sun Belt markets like Texas, Florida, and Arizona, leveraging population trends.

• 2024 new restaurant growth targeted at 10%+, rising to 12%-15% in 2026 and beyond.

• 80% of new units to be in the Sun Belt, with continued Midwest densification.

• Long-term goals: mid-teens revenue growth, low teens adjusted EBITDA growth, and low single-digit comp growth.

Unit economics and new restaurant performance

• New units target 25% cash-on-cash returns by year three, with $7.3M-$7.5M AUVs and 22% margins.

• Restaurant of the Future design reduces size by 1,500 sq ft, lowering build costs by $1M.

• Newer classes of restaurants are tracking to high-teens margins, with performance varying by market entry type.

• First-in-market locations show steep initial sales curves, stabilizing over time.