Portillo's (PTLO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7.5% year-over-year to $181.9 million, driven by new restaurant openings, while same-restaurant sales declined 0.6% due to lower transactions partially offset by higher average check.

• Net income for Q2 was $8.5 million, down from $9.9 million in Q2 2023, with operating income at $18.1 million.

• Restaurant-Level Adjusted EBITDA increased to $44.6 million (24.5% margin), and Adjusted EBITDA to $29.9 million (16.4% margin).

• Management is focused on operational excellence, digital innovation, guest experience, and team development to drive future growth.

• Restaurant count reached 86 as of June 30, 2024, with two additional openings post-quarter and at least 10 new units planned for 2024.

Financial highlights

• Q2 same-restaurant sales declined 0.6% year-over-year, driven by a 2.3% drop in transactions, partially offset by a 1.7% increase in average check.

• Adjusted EBITDA for Q2 was $29.9 million (16.4% margin), and Restaurant-Level Adjusted EBITDA was $44.6 million (24.5% margin).

• Cash from operations for the first half of 2024 was $41.6 million, up from $31.3 million in the prior year period; quarter-end cash was $12.4 million.

• Food, beverage, and packaging costs rose to 33.9% of revenues due to 6.9% commodity inflation.

• Labor costs as a percentage of revenue remained flat at 25.5%, with hourly rates up 3.1%.

Outlook and guidance

• Full-year 2024 guidance: at least 10 new restaurant openings, flat to slightly positive same-restaurant sales, and restaurant-level adjusted EBITDA margin of 23%-24%.

• Capital expenditures expected at $85–$88 million for 2024; G&A expenses $82–$84 million; pre-opening expenses $10–$10.5 million.

• Long-term targets: 12%-15% unit growth, low single-digit same-restaurant sales growth, mid-teens revenue and adjusted EBITDA growth.