Portillo's (PTLO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 4.5% to $710.6M, with Q4 revenue at $184.6M, impacted by the absence of a 53rd week; same-restaurant sales declined 0.6% for the year but rose 0.4% in Q4.

• Net income for fiscal 2024 was $35.1M, up $10.3M from 2023; Q4 net income was $12.4M.

• Adjusted EBITDA for fiscal 2024 was $104.8M (14.7% margin), with Q4 Adjusted EBITDA at $25.2M; Restaurant-Level Adjusted EBITDA reached $168.1M (23.7% margin).

• Opened 10 new restaurants in 2024, bringing the total to 94; all restaurants now have kiosks, contributing to comp lift and efficiency.

• Cost control in labor and G&A supported strong cash flow and operational efficiency.

Financial highlights

• Q4 revenue decreased 1.7% year-over-year due to the absence of a 53rd week; excluding this, revenue grew 6.1%.

• Restaurant-Level Adjusted EBITDA margin increased to 24.5% in Q4; fiscal 2024 margin was 23.7%.

• Average check rose 4.1% in Q4, offset by a 3.7% decline in transactions.

• Cash from operations rose 38.5% year-over-year to $98M.

• EPS (diluted) for fiscal 2024 was $0.46, up from $0.32 in 2023.

Outlook and guidance

• 2025 targets: 12 new units, revenue growth of 11–12%, same-restaurant sales flat to +2%.

• Restaurant-Level Adjusted EBITDA margin guidance for 2025: 22.5–23%; adjusted EBITDA growth targeted at 6–8%.

• G&A expenses projected at $82M–$84M; pre-opening expenses at $11M–$12M; capital expenditures at $97M–$100M.

• Commodity inflation estimated at 3–5% (beef as main pressure); labor inflation at 3–4%.

• Long-term: annual unit growth 12–15%, mid-teens revenue growth, low-teens adjusted EBITDA growth.