CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 75-95% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Portillos Q3 revenue rises 7%, slightly beats estimates

By Reuters News


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


Reuters Recommended Reads

  • Nov 5 - Wendys Q3 adjusted revenue misses estimates, hurt by weaker US demand

  • Nov 5 - Papa John's Q3 revenue falls 10.5%, misses estimates

  • Nov 4 - McDonald's says US sales on the mend as promotions draw diners back


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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.