Portillo's Q4 revenue misses estimates

Portillos

24/02/2026 13:09

Overview

Restaurant chain's Q4 revenue rose 0.6% yr/yr but missed analyst expectations

Net income for Q4 decreased 49.5% yr/yr due to expense factors

Company implemented strategic changes to improve business performance

Outlook

Portillo's plans to open 8 new units in fiscal 2026

Company expects mid-single-digit commodity inflation in 2026

Portillo's forecasts 2026 labor inflation between 3% and 3.5%

Portillo's targets 2026 restaurant-level adjusted EBITDA margin of 20.5% to 21%

Company projects 2026 general and administrative expenses of $80-$82 mln

Portillo's anticipates flat adjusted EBITDA vs. 2025

Result Drivers

NEW RESTAURANT OPENINGS - Revenue increase attributed to opening of eight new restaurants in fiscal 2025, despite decline in same-restaurant sales

SAME-RESTAURANT SALES DECLINE - Same-restaurant sales decreased 3.3% due to a decline in transactions, with average check remaining flat

INCREASED OPERATING EXPENSES - Operating expenses rose due to new restaurant openings and higher commodity and labor costs

Company press release: ID:nGNX9J3LVr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$185.70 mln
$187.62 mln (9 Analysts)
Q4 Net Income
$6.30 mln
Q4 Rest. Level Adj. EBITDA
$40.60 mln
Q4 Operating Expenses
$145.20 mln
Q4 Operating Income
$10.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "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 $6.00, about 3.6% above its February 23 closing price of $5.79

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)