Portillo's Q3 revenue misses estimates

Portillos

04/11/2025 13:09

Overview

Portillo's Q3 revenue rose 1.8% yr/yr but missed analyst expectations

Same-restaurant sales decreased 0.8%, driven by lower transactions

Net income for Q3 decreased by $8 mln yr/yr

Outlook

Portillo's expects fiscal 2025 revenue between $730 mln and $733 mln

Company projects fiscal 2025 same-restaurant sales decline of 1% to 1.5%

Portillo's anticipates fiscal 2025 adjusted EBITDA of $90 mln to $94 mln

Result Drivers

NEW RESTAURANTS - Revenue growth attributed to opening of new restaurants in 2024 and 2025

SAME-RESTAURANT SALES DECLINE - Decrease driven by a 2.2% drop in transactions, partially offset by higher average check

HIGHER OPERATING EXPENSES - Increase due to new restaurant openings and higher commodity and labor costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$181.40 mln
$182.04 mln (9 Analysts)
Q3 EPS
$0.02
Q3 Net Income
$800,000
Q3 Rest. Level Adj. EBITDA
$36.70 mln
Q3 Operating Expenses
$144.70 mln
Q3 Operating Income
$5.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Portillos Inc is $8.00, about 34.5% above its November 3 closing price of $5.24

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX2n290F

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)