Portillos Inc (PTLO) Q1 2025 Earnings Call Transcript
Total Revenue $176.4 million, an increase of $10.6 million (6.4%) year-over-year, driven by growth from non-comparable restaurants and same restaurant sales growth.
Same Restaurant Sales Increased by 1.8%, contributing approximately $2.6 million to revenue, driven by a 4.9% increase in average check, partially offset by a 3.1% decrease in transactions.
Restaurant Level Adjusted EBITDA $36.7 million, an increase of $0.3 million from $36.4 million, with a margin decrease of 110 basis points to 20.8%.
General and Administrative Expenses Increased by $0.4 million to $18.9 million (10.7% of revenue) from $18.5 million (11.2% of revenue), primarily due to higher software license fees and advertising expenses.
Adjusted EBITDA $21.2 million, a decrease of 2.6% from $21.8 million in the first quarter of 2024.
Interest Expense $5.7 million, a decrease of $0.8 million from the first quarter of 2024, driven by a lower effective interest rate.
Cash from Operations Increased by 4.1% year-over-year to $9.5 million.
Effective Interest Rate 7%, down from 8.4% in 2024.
Income Tax Expense $1.4 million, an increase of $2.5 million from the first quarter of 2024, with an effective tax rate of 25.4%.
Cash Balance Ended the quarter with $12.9 million in cash.
Net Debt $320 million, an increase from $312 million at the end of last year.
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Portillo's Announces Q4 & FY 2025 Earnings Webcast Details
- Earnings Release Schedule: Portillo's will host a webcast for its Q4 and FY 2025 earnings on February 24, 2026, at 10 a.m. EST, with the earnings report expected to be released before market open, aiming to provide investors with insights into its financial performance and future outlook.
- Investor Relations Contact: Investors can join the webcast via Portillo's investor relations website, with Vice President Chris Brandon available for inquiries, reflecting the company's commitment to transparency and effective communication with its investors.
- Brand Development Journey: Portillo's has grown from a hot dog trailer in Chicago to over 100 restaurants across 11 states, gaining a loyal customer base with its unique offerings like Italian beef sandwiches and Chicago-style hot dogs, showcasing the brand's strong appeal.
- Innovative Operating Model: Portillo's operates a company-owned model that not only provides dining services but also creates experience-focused destinations that integrate dine-in, drive-thru, takeout, and delivery, aiming to enhance customer dining experiences and expand market share.
Analyst Predicts Increase in Hubspot Stock, Along with Insights on McGraw Hill, UHS, and Other Stocks.
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
Portillo's Launches DJ Moore Meal to Celebrate Victory Moment
- Victory Meal Launch: Portillo's collaborates with Chicago star DJ Moore to introduce a new meal featuring Italian beef sandwiches, fries, and a Coke, aimed at attracting fans and enhancing brand loyalty.
- Limited-Time Promotion: Customers can order the DJ Moore meal through restaurant kiosks, the Portillo's app, or website, which is expected to drive sales growth and improve customer experience.
- New Sauce Release: Portillo's will launch the “Comeback Sauce” in January as a complement to the new meal, aimed at further enhancing the dining experience and attracting repeat customers.
- Loyalty Program Incentive: From January 5 to 8, 2026, Portillo's Perks members can receive a free Comeback Sauce with any purchase, designed to increase customer retention and expand the membership base.
Starbucks Shares (NASDAQ:SBUX) Rise Amidst Increased Competition and Union Issues
Starbucks Competitors: Dutch Bros. Coffee is expanding rapidly and introducing new breakfast options, posing a challenge to Starbucks' dominance in morning operations, yet Starbucks shares rose nearly 2% despite this news.
Union Strikes: Starbucks faces potential strikes from unionized shops ahead of Red Cup Day, highlighting ongoing employee dissatisfaction with workload and compensation, although Starbucks claims most workers enjoy their jobs.
Market Performance: Analysts maintain a Moderate Buy consensus on Starbucks (SBUX) stock, with a price target suggesting an 8.11% upside potential, despite a 13.41% decline in share price over the past year.
Competitor Challenges: Portillo’s breakfast pilot program was halted due to operational conflicts, providing some relief to Starbucks as it reduces competition in the breakfast segment.
Three Consumer Stocks Set to Surge in November
Oversold Stocks Opportunity: The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies, particularly those with an RSI below 30.
Portillos Inc Performance: Portillos Inc (PTLO) reported weaker-than-expected quarterly results, leading to a 22% stock decline over the past month, with an RSI of 29.9 and a closing price of $4.72.
Unifi Inc Update: Unifi Inc (UFI) experienced a narrower-than-expected quarterly loss, resulting in a 20% drop in stock price over the last month, an RSI of 29.7, and a closing price of $3.70.
Brinker International Results: Despite posting strong quarterly earnings, Brinker International (EAT) saw an 18% decline in stock price over the past month, with an RSI of 29.3 and a closing price of $105.81.
Transcript of Portillo's (PTLO) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Portillo's Announces Q4 & FY 2025 Earnings Webcast Details
- Earnings Release Schedule: Portillo's will host a webcast for its Q4 and FY 2025 earnings on February 24, 2026, at 10 a.m. EST, with the earnings report expected to be released before market open, aiming to provide investors with insights into its financial performance and future outlook.
- Investor Relations Contact: Investors can join the webcast via Portillo's investor relations website, with Vice President Chris Brandon available for inquiries, reflecting the company's commitment to transparency and effective communication with its investors.
- Brand Development Journey: Portillo's has grown from a hot dog trailer in Chicago to over 100 restaurants across 11 states, gaining a loyal customer base with its unique offerings like Italian beef sandwiches and Chicago-style hot dogs, showcasing the brand's strong appeal.
- Innovative Operating Model: Portillo's operates a company-owned model that not only provides dining services but also creates experience-focused destinations that integrate dine-in, drive-thru, takeout, and delivery, aiming to enhance customer dining experiences and expand market share.
Analyst Predicts Increase in Hubspot Stock, Along with Insights on McGraw Hill, UHS, and Other Stocks.
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
Portillo's Launches DJ Moore Meal to Celebrate Victory Moment
- Victory Meal Launch: Portillo's collaborates with Chicago star DJ Moore to introduce a new meal featuring Italian beef sandwiches, fries, and a Coke, aimed at attracting fans and enhancing brand loyalty.
- Limited-Time Promotion: Customers can order the DJ Moore meal through restaurant kiosks, the Portillo's app, or website, which is expected to drive sales growth and improve customer experience.
- New Sauce Release: Portillo's will launch the “Comeback Sauce” in January as a complement to the new meal, aimed at further enhancing the dining experience and attracting repeat customers.
- Loyalty Program Incentive: From January 5 to 8, 2026, Portillo's Perks members can receive a free Comeback Sauce with any purchase, designed to increase customer retention and expand the membership base.
Starbucks Shares (NASDAQ:SBUX) Rise Amidst Increased Competition and Union Issues
Starbucks Competitors: Dutch Bros. Coffee is expanding rapidly and introducing new breakfast options, posing a challenge to Starbucks' dominance in morning operations, yet Starbucks shares rose nearly 2% despite this news.
Union Strikes: Starbucks faces potential strikes from unionized shops ahead of Red Cup Day, highlighting ongoing employee dissatisfaction with workload and compensation, although Starbucks claims most workers enjoy their jobs.
Market Performance: Analysts maintain a Moderate Buy consensus on Starbucks (SBUX) stock, with a price target suggesting an 8.11% upside potential, despite a 13.41% decline in share price over the past year.
Competitor Challenges: Portillo’s breakfast pilot program was halted due to operational conflicts, providing some relief to Starbucks as it reduces competition in the breakfast segment.
Three Consumer Stocks Set to Surge in November
Oversold Stocks Opportunity: The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies, particularly those with an RSI below 30.
Portillos Inc Performance: Portillos Inc (PTLO) reported weaker-than-expected quarterly results, leading to a 22% stock decline over the past month, with an RSI of 29.9 and a closing price of $4.72.
Unifi Inc Update: Unifi Inc (UFI) experienced a narrower-than-expected quarterly loss, resulting in a 20% drop in stock price over the last month, an RSI of 29.7, and a closing price of $3.70.
Brinker International Results: Despite posting strong quarterly earnings, Brinker International (EAT) saw an 18% decline in stock price over the past month, with an RSI of 29.3 and a closing price of $105.81.
Transcript of Portillo's (PTLO) Earnings Call for Q3 2025
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
