Portillo's (PTLO) Piper Sandler Growth Frontiers Conference summary

Business overview and value proposition

• Focus on craveable, made-to-order food with high Net Promoter Scores, comparable to top industry peers.

• Menu features Chicago street food staples and customizable salads, with strong fan loyalty.

• Value proposition centers on quality, quantity, and competitive pricing without mandatory tipping.

• Unit economics are strong, with no restaurant closures and high-teen margins even at underperforming locations.

• Lower employee turnover and a strong frontline culture are key differentiators.

Growth strategy and expansion

• Core business in the Midwest generates cash, which is reinvested in high-growth Sun Belt markets.

• Sun Belt locations show AUVs above the rest of the Midwest, indicating broad appeal.

• Restaurant size has been reduced over time, with the new "Restaurant of the Future" model launching in Q4 at $5.2M build cost.

• Committed to 12%-15% unit growth, low single-digit same-store sales growth, and mid-teens revenue and Adjusted EBITDA growth.

• Long-term growth profile expected to continue beyond the next few years.

Restaurant of the Future and operational innovation

• Restaurant of the Future (1.0) features a smaller footprint and more efficient kitchen, with 2.0 in development for 2026 deployment.

• 2.0 will focus on back-of-house redesign, equipment innovation, and maintaining high AUVs.

• Operating expense and labor savings are anticipated but will be measured after launch.