Portillos Q3 revenue rises 7%, slightly beats estimates
Overview
US restaurant chain's Q3 revenue grew 7%, slightly beating analyst expectations
Net income rose sharply from the prior-year period
Company to close several underperforming restaurants outside Chicagoland to improve portfolio quality
Outlook
Portillo's expects 2026 revenue of $768-$773 mln
Company raises 2026 adjusted EBITDA forecast to $98-$101 mln from $92-$96 mln
Portillo's sees 2026 restaurant-level adjusted EBITDA margin of 20.0%-20.5%
Result Drivers
NEW RESTAURANT OPENINGS - Co said revenue growth was mainly driven by new restaurant openings in 2025 and 2026
MENU PRICE INCREASES - Co said higher menu prices contributed to same-restaurant sales growth, offsetting lower transaction counts
LOWER DEAD SITE COSTS - Co said reduced dead site costs from prior strategic reset lowered general and administrative expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $194.10 mln | $193.18 mln (9 Analysts) |
Q3 Net Income | $4.80 mln | ||
Q3 Rest. Level Adj. EBITDA | $26.50 mln | ||
Q3 Operating Expenses | $154 mln | ||
Q3 Operating Income | $11.80 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "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 $5.00, about 8.3% below its November 4 closing price of $5.45
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 20 three months ago
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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.)