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Portillo’s Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

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Portillo's Inc. (NASDAQ: PTLO) has reported its financial results for Q4 and fiscal year 2024. The company showed mixed performance with total revenue decreasing 1.7% to $184.6 million in Q4, but increasing 4.5% to $710.6 million for the full fiscal year.

Q4 same-restaurant sales increased 0.4%, while fiscal year same-restaurant sales decreased 0.6%. The company's net income showed improvement, increasing by $2.8 million to $12.4 million in Q4 and by $10.3 million to $35.1 million for the full year.

In fiscal 2024, Portillo's opened 10 new restaurants across Arizona, Florida, Illinois, Michigan, and Texas markets, bringing its total to 94 locations. The company plans to open 12 new restaurants in fiscal 2025, focusing on markets outside Chicagoland with favorable economic conditions, particularly in the Sunbelt region and Texas, with plans to enter the Atlanta market.

To address inflationary pressures, Portillo's implemented several menu price increases throughout 2024, including a 1.5% increase in January, another 1.5% in March, and 1.0% in June, followed by an additional 1.5% increase in January 2025.

Portillo's Inc. (NASDAQ: PTLO) ha riportato i risultati finanziari per il quarto trimestre e l'anno fiscale 2024. L'azienda ha mostrato una performance mista, con un fatturato totale in calo del 1,7% a 184,6 milioni di dollari nel quarto trimestre, ma in aumento del 4,5% a 710,6 milioni di dollari per l'intero anno fiscale.

Le vendite negli stessi ristoranti del quarto trimestre sono aumentate dello 0,4%, mentre le vendite negli stessi ristoranti per l'anno fiscale sono diminuite dello 0,6%. Il reddito netto dell'azienda ha mostrato un miglioramento, aumentando di 2,8 milioni di dollari a 12,4 milioni di dollari nel quarto trimestre e di 10,3 milioni di dollari a 35,1 milioni di dollari per l'intero anno.

Nel 2024, Portillo's ha aperto 10 nuovi ristoranti nei mercati di Arizona, Florida, Illinois, Michigan e Texas, portando il totale a 94 sedi. L'azienda prevede di aprire 12 nuovi ristoranti nell'anno fiscale 2025, concentrandosi su mercati al di fuori dell'area di Chicago con condizioni economiche favorevoli, in particolare nella regione del Sunbelt e in Texas, con piani per entrare nel mercato di Atlanta.

Per affrontare le pressioni inflazionistiche, Portillo's ha attuato diversi aumenti di prezzo nel menu nel corso del 2024, tra cui un aumento dell'1,5% a gennaio, un altro aumento dell'1,5% a marzo e dell'1,0% a giugno, seguito da un ulteriore aumento dell'1,5% a gennaio 2025.

Portillo's Inc. (NASDAQ: PTLO) ha reportado sus resultados financieros para el cuarto trimestre y el año fiscal 2024. La compañía mostró un desempeño mixto, con ingresos totales disminuyendo un 1.7% a 184.6 millones de dólares en el cuarto trimestre, pero aumentando un 4.5% a 710.6 millones de dólares para el año fiscal completo.

Las ventas en restaurantes comparables del cuarto trimestre aumentaron un 0.4%, mientras que las ventas del año fiscal en restaurantes comparables disminuyeron un 0.6%. El ingreso neto de la compañía mostró una mejora, aumentando en 2.8 millones de dólares a 12.4 millones de dólares en el cuarto trimestre y en 10.3 millones de dólares a 35.1 millones de dólares para el año completo.

En el año fiscal 2024, Portillo's abrió 10 nuevos restaurantes en los mercados de Arizona, Florida, Illinois, Michigan y Texas, llevando su total a 94 ubicaciones. La compañía planea abrir 12 nuevos restaurantes en el año fiscal 2025, enfocándose en mercados fuera de la zona de Chicago con condiciones económicas favorables, particularmente en la región del Sunbelt y Texas, con planes de ingresar al mercado de Atlanta.

Para abordar las presiones inflacionarias, Portillo's implementó varios aumentos de precios en el menú a lo largo de 2024, incluyendo un aumento del 1.5% en enero, otro del 1.5% en marzo y del 1.0% en junio, seguido de un aumento adicional del 1.5% en enero de 2025.

포르틸로's Inc. (NASDAQ: PTLO)는 2024 회계연도 4분기 및 연간 재무 결과를 발표했습니다. 회사는 총 수익이 1.7% 감소하여 4분기 1억 8460만 달러를 기록했지만, 전체 회계연도에는 4.5% 증가하여 7억 1060만 달러에 달했습니다.

4분기 동일 매장 매출은 0.4% 증가했으며, 회계 연도 동일 매장 매출은 0.6% 감소했습니다. 회사의 순이익은 개선되어 4분기에 280만 달러 증가하여 1240만 달러에 이르렀고, 연간으로는 1030만 달러 증가하여 3510만 달러에 도달했습니다.

2024 회계연도에 포르틸로's는 애리조나, 플로리다, 일리노이, 미시간, 텍사스 시장에 걸쳐 10개의 새로운 레스토랑을 열어 총 94개 매장으로 확대했습니다. 회사는 2025 회계연도에 12개의 새로운 레스토랑을 열 계획이며, 시카고 지역 외의 경제적 조건이 유리한 시장, 특히 선벨트 지역과 텍사스에 집중하고 있으며, 애틀랜타 시장으로의 진입 계획도 세우고 있습니다.

인플레이션 압박에 대응하기 위해 포르틸로's는 2024년 동안 여러 차례 메뉴 가격 인상을 시행했으며, 1월에 1.5% 인상, 3월에 1.5% 인상, 6월에 1.0% 인상, 그리고 2025년 1월에 추가로 1.5% 인상을 단행할 예정입니다.

Portillo's Inc. (NASDAQ: PTLO) a publié ses résultats financiers pour le quatrième trimestre et l'exercice 2024. L'entreprise a affiché une performance mitigée avec des revenus totaux en baisse de 1,7% à 184,6 millions de dollars au quatrième trimestre, mais en hausse de 4,5% à 710,6 millions de dollars pour l'année fiscale complète.

Les ventes dans les mêmes restaurants du quatrième trimestre ont augmenté de 0,4 %, tandis que les ventes dans les mêmes restaurants pour l'année fiscale ont diminué de 0,6 %. Le revenu net de l'entreprise a montré une amélioration, augmentant de 2,8 millions de dollars à 12,4 millions de dollars au quatrième trimestre et de 10,3 millions de dollars à 35,1 millions de dollars pour l'ensemble de l'année.

Au cours de l'exercice 2024, Portillo's a ouvert 10 nouveaux restaurants dans les marchés de l'Arizona, de la Floride, de l'Illinois, du Michigan et du Texas, portant son total à 94 emplacements. L'entreprise prévoit d'ouvrir 12 nouveaux restaurants au cours de l'exercice 2025, en se concentrant sur des marchés en dehors de la région de Chicago avec des conditions économiques favorables, en particulier dans la région du Sunbelt et au Texas, avec des projets d'entrée sur le marché d'Atlanta.

Pour faire face aux pressions inflationnistes, Portillo's a mis en œuvre plusieurs augmentations de prix du menu tout au long de l'année 2024, y compris une augmentation de 1,5 % en janvier, une autre de 1,5 % en mars et de 1,0 % en juin, suivie d'une augmentation supplémentaire de 1,5 % en janvier 2025.

Portillo's Inc. (NASDAQ: PTLO) hat seine finanziellen Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht. Das Unternehmen zeigte eine gemischte Leistung, mit einem Rückgang des Gesamtumsatzes um 1,7% auf 184,6 Millionen Dollar im 4. Quartal, aber einem Anstieg um 4,5% auf 710,6 Millionen Dollar für das gesamte Geschäftsjahr.

Die Umsätze in den gleichen Restaurants im 4. Quartal stiegen um 0,4%, während die Umsätze im gleichen Restaurant für das Geschäftsjahr um 0,6% zurückgingen. Der Nettoertrag des Unternehmens zeigte eine Verbesserung und stieg um 2,8 Millionen Dollar auf 12,4 Millionen Dollar im 4. Quartal und um 10,3 Millionen Dollar auf 35,1 Millionen Dollar für das gesamte Jahr.

Im Geschäftsjahr 2024 eröffnete Portillo's 10 neue Restaurants in den Märkten Arizona, Florida, Illinois, Michigan und Texas und brachte die Gesamtzahl auf 94 Standorte. Das Unternehmen plant, 12 neue Restaurants im Geschäftsjahr 2025 zu eröffnen, mit Fokus auf Märkte außerhalb von Chicagoland, die günstige wirtschaftliche Bedingungen aufweisen, insbesondere in der Sunbelt-Region und Texas, mit Plänen, in den Atlantamarkt einzutreten.

Um den inflationsbedingten Druck zu bewältigen, implementierte Portillo's mehrere Preiserhöhungen im Menü im Laufe des Jahres 2024, darunter eine Erhöhung um 1,5% im Januar, eine weitere Erhöhung um 1,5% im März und 1,0% im Juni, gefolgt von einer zusätzlichen Erhöhung um 1,5% im Januar 2025.

Positive
  • Net income increased by $2.8 million to $12.4 million in Q4 2024
  • Net income increased by $10.3 million to $35.1 million for fiscal year 2024
  • Same-restaurant sales increased 0.4% in Q4 2024
  • Total revenue increased 4.5% to $710.6 million for fiscal year 2024
  • Successfully opened 10 new restaurants in 2024
  • Plans to accelerate growth with 12 new restaurant openings in 2025
  • Average check increased 4.1% in Q4 and 2.6% for the full year
  • Commodity inflation stabilized at 1.8% in Q4 2024 vs. 4.4% in Q4 2023
Negative
  • Total revenue decreased 1.7% to $184.6 million in Q4 2024
  • Same-restaurant sales decreased 0.6% for fiscal year 2024
  • Transaction count decreased 3.7% in Q4 and 3.2% for the full year
  • Restaurant-Level Adjusted EBITDA decreased $0.5 million in Q4 2024
  • Adjusted EBITDA decreased $0.9 million to $25.2 million in Q4 2024
  • Technology asset impairment charge recorded in Q4 2024

Insights

Portillo's Q4 and FY 2024 earnings reveal a company navigating a challenging consumer environment while continuing its disciplined expansion strategy. While the headline 1.7% revenue decline in Q4 appears concerning, adjusting for the extra week in 2023 (which contributed $13.9 million) reveals underlying growth of approximately 6.1% on a normalized basis.

The full-year revenue increase of 4.5% to $710.6 million demonstrates positive momentum, though the 0.6% same-restaurant sales decline highlights operational challenges. The 3.2% transaction decline for the full year is particularly concerning, as it suggests potential price sensitivity despite the company implementing multiple price increases totaling approximately 4.6% throughout 2024.

Net income improvements are noteworthy, with a 29.2% increase in Q4 and a substantial 41.5% jump for the full year to $35.1 million. However, Restaurant-Level Adjusted EBITDA margins appear to be under pressure, with only a 1.8% increase for the full year despite 4.5% revenue growth, indicating some operational efficiency challenges as the company scales.

The company's expansion strategy continues to be a key growth driver, with 10 new restaurants opened in 2024 and 12 planned for 2025. The focus on Texas (particularly Dallas-Fort Worth and Houston) demonstrates a strategic concentration on high-growth Sunbelt markets. The Restaurant of the Future prototype represents an important evolution in the company's unit model, potentially offering improved capital efficiency with its smaller 6,250 square foot footprint.

Commodity inflation has moderated to 1.8% in Q4 2024 from 4.4% in Q4 2023, providing some cost relief. However, the company's reliance on continued price increases (including another 1.5% in January 2025) to offset these pressures warrants close monitoring, especially given the persistent transaction declines.

Looking ahead, management's guidance for fiscal 2025 appears cautiously optimistic but achievable, with revenue growth targets of 8-10% supported by new unit growth rather than robust same-store sales expectations. The company's long-term targets of 10%+ revenue growth and 15-20% Adjusted EBITDA growth will require significant improvement in transaction trends and operational execution to achieve.

The persistent transaction declines amid multiple price increases present the most significant risk to Portillo's growth story. Management must balance pricing actions with value perception to reverse traffic trends while continuing to execute their geographic expansion strategy efficiently.

Portillo's Q4 and FY 2024 results reveal a company at a critical inflection point in its growth story. While the headline 4.5% full-year revenue growth to $710.6 million appears solid, the underlying traffic trends paint a more concerning picture. The 3.7% transaction decline in Q4 represents an acceleration from the 3.2% full-year decline, suggesting the company's multiple price increases (totaling 4.6% in 2024) may be reaching the limits of consumer acceptance.

When normalizing for the extra week in 2023 that contributed $13.9 million to Q4 2023 results, Q4 2024 revenue would have shown approximately 6.1% growth rather than the reported 1.7% decline. However, this growth is primarily driven by new restaurant openings rather than same-restaurant sales, which increased a modest 0.4% in Q4 and declined 0.6% for the full year.

The company's expansion strategy remains the primary growth driver, with 10 new restaurants opened in 2024 and 12 planned for 2025. The strategic focus on Texas is particularly noteworthy, with seven restaurants now operating in Dallas-Fort Worth and three new openings in Houston during Q4. This Sunbelt expansion represents a significant shift from Portillo's Chicago roots and will test the brand's appeal in new markets with different competitive dynamics.

The Restaurant of the Future prototype, at 6,250 square feet, represents an important evolution that could improve unit economics through reduced construction and occupancy costs. However, the company provided details on the performance of these new units compared to traditional locations.

Margin performance reveals mixed results. While net income increased 41.5% to $35.1 million for the full year, Restaurant-Level Adjusted EBITDA grew just 1.8% to $168.1 million, significantly lagging revenue growth. This suggests potential inefficiencies in newer locations or cost pressures not fully offset by price increases.

The company's pricing strategy deserves scrutiny, with four separate increases implemented in 2024 (January, March, June) and another 1.5% increase in January 2025. While these actions have successfully driven average check growth of 2.6% for the year, the persistent and accelerating transaction declines indicate potential erosion of value perception among consumers.

Looking ahead, management's 2025 guidance of 8-10% revenue growth appears achievable through unit expansion alone, but the 17-18% Restaurant-Level Adjusted EBITDA margin target will require significant operational improvements or further price increases that could exacerbate traffic challenges. The fundamental tension between price increases and transaction growth represents the most significant challenge to Portillo's long-term success.

CHICAGO, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the fourth quarter and fiscal year ended December 29, 2024.

“We ended the year with solid momentum, supported by key initiatives that will drive our long-term growth,” said Michael Osanloo, President and Chief Executive Officer of Portillo’s. “As we head into 2025, we’re focused on accelerating traffic, enhancing operational excellence, and expanding our geographic footprint to deliver value to our team members, guests and shareholders.”

Financial Highlights for the Fourth Quarter 2024 (13 weeks)(1) vs. Prior Year (14 weeks)(1):

  • Total revenue decreased 1.7% or $3.2 million to $184.6 million;
  • Same-restaurant sales(2) increased 0.4%;
  • Operating income decreased $0.6 million to $13.8 million;
  • Net income increased $2.8 million to $12.4 million;
  • Restaurant-Level Adjusted EBITDA(4) decreased $0.5 million to $45.2 million; and
  • Adjusted EBITDA(4) decreased $0.9 million to $25.2 million.

Financial Highlights for Fiscal Year 2024 (52 weeks)(1) vs. Prior Year (53 weeks)(1):

  • Total revenue increased 4.5% or $30.6 million to $710.6 million;
  • Same-restaurant sales(3) decreased 0.6%;
  • Operating income increased $2.6 million to $58.0 million;
  • Net income increased $10.3 million to $35.1 million;
  • Restaurant-Level Adjusted EBITDA(4) increased $2.9 million to $168.1 million; and
  • Adjusted EBITDA(4) increased $2.5 million to $104.8 million.

Impact of 53rd Week in Fourth Quarter 2023(1) and Fiscal Year 2023(1):

  • Total revenue includes an impact of approximately $13.9 million in both the fourth quarter 2023 and fiscal year 2023.
  • Operating income includes an impact of approximately $1.6 million in both the fourth quarter 2023 and fiscal year 2023.
  • Net income includes an impact of approximately $1.2 million in both the fourth quarter 2023 and fiscal year 2023.
  • Restaurant-Level Adjusted EBITDA includes an impact of approximately $3.5 million in both the fourth quarter 2023 and fiscal year 2023.
  • Adjusted EBITDA includes an impact of approximately $2.4 million in both the fourth quarter 2023 and fiscal year 2023.

(1) We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fourth quarter 2024 and fiscal year 2024 (“fiscal 2024”) consisted of 13 weeks and 52 weeks, respectively, and fourth quarter 2023 and fiscal year 2023 (“fiscal 2023”) consisted of 14 weeks and 53 weeks, respectively. The additional week (the “53rd week”) in the fourth quarter 2023 and fiscal 2023 included Christmas day, resulting in six additional operating days.
(2) For the fourth quarter 2024, same-restaurant sales compares the 13 weeks from September 30, 2024 through December 29, 2024 to the 13 weeks from October 2, 2023 through December 31, 2023.
(3 ) For fiscal 2024, same-restaurant sales compares the 52 weeks from January 1, 2024 through December 29, 2024 to the 52 weeks from January 2, 2023 through December 31, 2023.
(4) Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures accompanying this release.

Recent Developments and Trends

In fiscal 2024, total revenue, operating income, net income, Restaurant-Level Adjusted EBITDA, and Adjusted EBITDA all improved versus the prior year. We believe this improvement stemmed from maintaining concentration on our four strategic pillars, which guide our short-term objectives and form the basis for long-term growth.

In fiscal 2024, total revenue grew 4.5%, primarily due to new restaurant openings in 2024 and 2023. Same-restaurant sales declined 0.6% during fiscal 2024, compared to an increase of 5.7% during fiscal 2023. During the fourth quarter of 2024, total revenue declined 1.7%. Same-restaurant sales growth was 0.4% compared to same-restaurant sales growth of 4.4% during the fourth quarter of 2023. The fourth quarter of 2023 and fiscal 2023 includes the impact of the 53rd week.

In the fourth quarter of 2024 and fiscal 2024, we continued to see commodity inflation stabilize versus 2023 levels. Commodity inflation was 1.8% and 4.2% in the fourth quarter of 2024 and fiscal 2024, respectively, compared to 4.4% and 5.5% in the fourth quarter of 2023 and fiscal 2023, respectively. In fiscal 2024, we experienced a decrease of 0.1% in labor expenses, as a percentage of revenue, compared to fiscal 2023 primarily due to an increase in average check and lower variable-based compensation, partially offset by lower transactions and additional wage investments. To mitigate inflationary cost pressures, we implemented targeted menu price adjustments in 2024, including a 1.5% increase in January, another 1.5% increase at the end of March, and a 1.0% increase in June. We also increased certain menu prices by approximately 1.5% in January 2025.

Development Highlights

In fiscal 2024, we opened 10 new restaurants in the Arizona, Florida, Illinois, Michigan, and Texas markets, for a total of 94 restaurants, including a restaurant owned by C&O. Two restaurants in the Texas market were our Restaurant of the Future (“ROTF”) concept, a 6,250 square foot prototype restaurant. We also opened our seventh restaurant in the Dallas-Fort Worth market to meet our goal of achieving minimum scale (6-8 restaurants) within 24 months of our first opening. We also made significant strides in the Houston, Texas market with the opening of three new restaurants in the fourth quarter of 2024. Below are the 10 restaurants opened since the beginning of fiscal 2024:

Location Opening MonthFiscal Quarter Opened
Denton, TexasMarch 2024Q1 2024
Surprise, ArizonaMay 2024Q2 2024
Livonia, MichiganJuly 2024Q3 2024
Mansfield, TexasAugust 2024Q3 2024
Richmond, TexasOctober 2024Q4 2024
Katy, TexasDecember 2024Q4 2024
Orlando, FloridaDecember 2024Q4 2024
Houston, Texas (ROTF)December 2024Q4 2024
Grapevine, Texas (ROTF)December 2024Q4 2024
Orland Park, IllinoisDecember 2024Q4 2024
   

In fiscal 2025, we are planning to open 12 new restaurants. Our near-term restaurant growth strategy is focused on leveraging our proven unit economic model primarily in markets outside Chicagoland with favorable macro-economic tailwinds where we already have a presence. Particularly, our short-term focus continues to be in the Sunbelt, primarily in Texas, with plans to enter the Atlanta, Georgia market. Simultaneously, we will continue to fill-in existing markets, including Chicagoland and adjacent markets as opportunities come available.

Review of Fourth Quarter 2024 Financial Results

Revenues for the quarter ended December 29, 2024 were $184.6 million compared to $187.9 million for the quarter ended December 31, 2023, a decrease of $3.2 million or 1.7%. Revenue was negatively impacted by $13.9 million due to the additional operating week in the fourth quarter 2023, partially offset by the positive impact of the opening of ten restaurants in fiscal 2024 and six restaurants in the fourth quarter of 2023 and an increase in our same-restaurant sales of 0.4%, or $0.6 million in the quarter. The same-restaurant sales increase was attributable to an increase in average check of 4.1%, partially offset by a 3.7% decrease in transactions. The higher average check was driven by an approximate 4.7% increase in certain menu prices, partially offset by product mix. Restaurants not in our Comparable Restaurant Base (defined below) contributed $8.6 million of the total year-over-year change. For the purpose of calculating same-restaurant sales for the quarter ended December 29, 2024, sales for 71 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

Total restaurant operating expenses for the fourth quarter ended December 29, 2024 were $139.4 million compared to $142.1 million for the fourth quarter ended December 31, 2023, a decrease of $2.7 million or 1.9%. The decrease was primarily driven by the additional operating week in the fourth quarter of 2023, partially offset by the opening of six restaurants in the fourth quarter of 2023 and ten restaurants in fiscal 2024. Additionally, food, beverage and packaging costs were negatively impacted by a 1.8% increase in commodity prices. The increase in labor expense was driven by incremental investments to support our team members, partially offset by lower variable-based compensation. Lastly, the increase in other operating expenses was due to the aforementioned restaurant openings and increases in repairs and maintenance, partially offset by a decrease in insurance expense.

General and administrative expenses for the fourth quarter ended December 29, 2024 were $20.3 million compared to $21.6 million for the fourth quarter ended December 31, 2023, a decrease of $1.2 million or 5.8%. This decrease was primarily driven by lower variable-based and equity compensation, partially offset by an increase in advertising expenses driven by the Chicagoland ad campaign and professional fees.

Operating income for the fourth quarter ended December 29, 2024 was $13.8 million compared to $14.5 million for the fourth quarter ended December 31, 2023, a decrease of $0.6 million primarily due to the aforementioned change in revenue and expenses and a technology asset impairment charge recorded in the fourth quarter of 2024.

Net income for the fourth quarter ended December 29, 2024 was $12.4 million compared to a net income of $9.6 million for the fourth quarter ended December 31, 2023, an increase of $2.8 million. The increase in net income was primarily due to an increase in our Tax Receivable Agreement liability adjustment of $4.8 million and a decrease in interest expense of $0.9 million, partially offset by an increase in income tax expense of $2.3 million and a decrease in operating income of $0.6 million due to the aforementioned factors.

Restaurant-Level Adjusted EBITDA* for the fourth quarter ended December 29, 2024 was $45.2 million compared to $45.7 million for the quarter ended December 31, 2023, a decrease of $0.5 million or 1.1%

Adjusted EBITDA* for the fourth quarter ended December 29, 2024 was $25.2 million compared to $26.1 million for the quarter ended December 31, 2023, a decrease of $0.9 million or 3.6%.

*A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under “Non-GAAP Measures” in the accompanying financial data below.

Review of Fiscal Year 2024 Financial Results

Revenues for fiscal 2024 were $710.6 million compared to $679.9 million for fiscal 2023, an increase of $30.6 million or 4.5%. The increase in revenues was primarily attributed to the opening of ten restaurants during fiscal 2024 and twelve restaurants in fiscal 2023, partially offset by a negative impact of $13.9 million due to the additional operating week in fiscal 2023 and a decrease in our same-restaurant sales. Same-restaurant sales decreased 0.6%, or $3.4 million. The same-restaurant sales decline was attributable to a 3.2% decrease in transactions, partially offset by an increase in average check of 2.6%. The higher average check was primarily driven by an approximate 4.6% increase in menu prices partially offset by product mix. Restaurants not in our Comparable Restaurant Base contributed $48.8 million of the total year-over-year increase. For the purpose of calculating same-restaurant sales as of December 29, 2024, sales for 71 restaurants were included in the Comparable Restaurant Base (as defined below) as of the end of fiscal 2024.

Total restaurant operating expenses for fiscal 2024 were $542.4 million compared to $514.7 million for fiscal 2023, an increase of $27.7 million or 5.4%. The increase in restaurant operating expenses was driven by the opening of ten restaurants in fiscal 2024 and the opening of twelve restaurants in fiscal 2023. Additionally, food, beverage and packaging costs was negatively impacted by a 4.2% increase in commodity prices, partially offset by lower third-party delivery commissions. The increase in labor expense was driven by incremental investments to support our team members, including annual rate increases, partially offset by lower variable-based compensation. Other operating expenses increased in repair and maintenance expenses, IT expenses, and utilities, partially offset by a decrease in operating supplies and advertising expenses.

General and administrative expenses for fiscal 2024 were $75.1 million compared to $78.8 million for fiscal 2023, a decrease of $3.7 million or 4.8%. This decrease was primarily driven by lower equity and variable-based compensation and insurance expenses, partially offset by an increase in advertising expenses driven by the Chicagoland ad campaign and professional fees and software license fees related to our enterprise resource planning (“ERP”) and human capital management (“HCM”) system implementations.

Operating income for fiscal 2024 was $58.0 million compared to $55.4 million for fiscal 2023, an increase of $2.6 million due to the aforementioned change in revenue and expenses and a technology asset impairment charge recorded in the fourth quarter of 2024.

Net income for fiscal 2024 was $35.1 million compared to $24.8 million for fiscal 2023, an increase of $10.3 million. The increase in net income was primarily due to the factors driving the aforementioned increase in operating income, a $5.8 million increase in the Tax Receivable Agreement liability adjustment, a $3.5 million loss on debt extinguishment included in fiscal 2023 and a decrease in interest expense of $1.9 million, partially offset by an increase in income tax expense of $3.6 million.

Restaurant-Level Adjusted EBITDA* for fiscal 2024 was $168.1 million compared to $165.2 million for fiscal 2023, an increase of $2.9 million or 1.8%.

Adjusted EBITDA* for fiscal 2024 was $104.8 million compared to $102.3 million for fiscal 2023, an increase of $2.5 million or 2.4%.

*A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under “Non-GAAP Measures” in the accompanying financial data below.

Fiscal 2025 Financial Targets

Based on current expectations, we are providing financial targets for fiscal 2025 as follows:

 Current Target
Unit growth12 new units
Same-restaurant salesFlat to +2%
Revenue growth11% to 12%
Commodity inflation3% to 5%
Labor inflation3% to 4%
Restaurant-level adjusted EBITDA margin*22.5% to 23%
General and administrative expenses$82 - $84 million
Pre-opening expenses$11 - $12 million
Adjusted EBITDA growth*6% to 8%
Capital expenditures$97 - $100 million

*We are unable to reconcile the financial target for adjusted EBITDA growth and restaurant-level adjusted EBITDA margin to net income/loss growth and operating income/loss margin, the respective corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.

Long-Term Financial Targets

Annual unit growth12% - 15%
Same-restaurant salesLow single digits
Revenue growthMid teens
Adjusted EBITDA growth*Low teens

*We are unable to reconcile the long-term outlook for Adjusted EBITDA growth to net income/loss, the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.

The following definitions apply to these terms as used in this release:

Change in Same-Restaurant Sales - The change in same-restaurant sales is the percentage change in year-over-year revenue (excluding gift card breakage) for the Comparable Restaurant Base, which is defined as the number of restaurants open for at least 24 full fiscal periods. For the years ended December 29, 2024 and December 31, 2023, there were 71 and 68 restaurants in our Comparable Restaurant Base, respectively.

A change in same-restaurant sales is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our change in same-restaurant sales allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company’s historical and prospective operating performance.

Average Unit Volume - AUV is the total revenue (excluding gift card breakage) recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

Adjusted EBITDA and Adjusted EBITDA Margin - Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.”

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin - Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.”

For more information about the Company’s Non-GAAP measures, how they are calculated and reconciled and why management believes that they are useful, see “Non-GAAP Financial Measures” below.

Earnings Conference Call

The Company will host a conference call to discuss its financial results for the fourth quarter and fiscal year ended December 29, 2024 as well as a 2025 financial outlook on Tuesday, February 25, 2025, at 10:00 AM ET. The conference call can be accessed live over the phone by dialing 877-407-3982. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 412-317-6671; the passcode is 13748473. The webcast will be available at www.portillos.com under the investors section and will be archived on the site shortly after the call has concluded.

About Portillo’s

In 1963, Dick Portillo invested $1,100 into a small trailer to open the first Portillo’s hot dog stand in Villa Park, IL, which he called “The Dog House.” Years later, Portillo’s (NASDAQ: PTLO) has grown to more than 90 restaurants across 10 states. Portillo’s is best known for its Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads and famous chocolate cake.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business, and are based on currently available operating, financial and competitive information which are subject to various risks and uncertainties, so you should not place undue reliance on forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "commit," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following:

  • risks related to or arising from our organizational structure;
  • risks of food-borne illness and food safety and other health concerns about our food;
  • risks relating to the economy and financial markets, including inflation, fluctuating interest rates, stock market activity, or other factors;
  • the impact of unionization activities of our team members on our reputation, operations and profitability;
  • risks associated with our reliance on certain information technology systems, including our new enterprise resource planning system, and potential failures or interruptions;
  • risks associated with data, privacy, cyber security and the use and implementation of information technology systems, including our digital ordering and payment platforms for our delivery business;
  • risks associated with increased adoption, implementation and use of artificial intelligence technologies across our business;
  • the impact of competition, including from our competitors in the restaurant industry or our own restaurants;
  • the increasingly competitive labor market and our ability to attract and retain the best talent and qualified employees;
  • the impact of federal, state or local government regulations relating to privacy, data protection, advertising and consumer protection, building and zoning requirements, labor and employment matters, costs of or ability to open new restaurants, or the sale of food and alcoholic beverages;
  • inability to achieve our growth strategy, such as the availability of suitable new restaurant sites in existing and new markets and opening of new restaurants at the anticipated rate and on the anticipated timeline;
  • the impact of consumer sentiment and other economic factors on our sales;
  • increases in food and other operating costs, tariffs and import taxes, and supply shortages; and
  • other risks identified in our filings with the Securities and Exchange Commission (the “SEC’).

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s most recent Annual Report on Form 10-K, filed with the SEC. All of the Company’s SEC filings are available on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact:
investors@portillos.com 

Media Contact:
ICR, Inc.
portillosPR@icrinc.com 

 
PORTILLO’S INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except common share and per common share data)
 
 Quarter Ended Fiscal Years Ended
 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023
REVENUES, NET$184,609  100.0% $187,858  100.0% $710,554  100.0% $679,905  100.0%
                
COST AND EXPENSES:               
Restaurant operating expenses:               
Food, beverage and packaging costs 62,870  34.1%  65,462  34.8%  241,679  34.0%  230,869  34.0%
Labor 45,432  24.6%  47,668  25.4%  181,091  25.5%  173,868  25.6%
Occupancy 8,909  4.8%  8,460  4.5%  36,632  5.2%  33,358  4.9%
Other operating expenses 22,170  12.0%  20,532  10.9%  83,038  11.7%  76,639  11.3%
Total restaurant operating expenses 139,381  75.5%  142,122  75.7%  542,440  76.3%  514,734  75.7%
                
General and administrative expenses 20,303  11.0%  21,550  11.5%  75,089  10.6%  78,835  11.6%
Pre-opening expenses 3,966  2.1%  3,990  2.1%  9,236  1.3%  9,019  1.3%
Depreciation and amortization 6,568  3.6%  6,525  3.5%  27,297  3.8%  24,313  3.6%
Net income attributable to equity method investment (306) (0.2)%  (391) (0.2)%  (1,229) (0.2)%  (1,401) (0.2)%
Other loss (income), net 864  0.5%  (405) (0.2)%  (312) —%  (1,035) (0.2)%
OPERATING INCOME 13,833  7.5%  14,467  7.7%  58,033  8.2%  55,440  8.2%
Interest expense 6,033  3.3%  6,931  3.7%  25,616  3.6%  27,470  4.0%
Interest income (105) (0.1)%  (96) (0.1)%  (309) —%  (212) —%
Tax Receivable Agreement liability adjustment (6,425) (3.5)%  (1,658) (0.9)%  (9,149) (1.3)%  (3,349) (0.5)%
Loss on debt extinguishment —  —%  —  —%  —  —%  3,465  0.5%
INCOME BEFORE INCOME TAXES 14,330  7.8%  9,290  4.9%  41,875  5.9%  28,066  4.1%
Income tax expense (benefit) 1,901  1.0%  (357) (0.2)%  6,799  1.0%  3,248  0.5%
NET INCOME 12,429  6.7%  9,647  5.1%  35,076  4.9%  24,818  3.7%
Net income attributable to non-controlling interests 1,164  0.6%  1,858  1.0%  5,559  0.8%  6,394  0.9%
NET INCOME ATTRIBUTABLE TO PORTILLO'S INC.$11,265  6.1% $7,789  4.1% $29,517  4.2% $18,424  2.7%
                
Income per common share attributable to Portillo’s Inc.:               
Basic$0.18    $0.14    $0.48    $0.34   
Diluted$0.17    $0.13    $0.46    $0.32   
                
Weighted-average common shares outstanding:               
Basic 63,192,284     55,409,702     61,050,437     53,806,570   
Diluted 65,885,627     58,635,214     63,982,643     57,307,784   

Note: We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fourth quarter 2024 and fiscal 2024 consisted of 13 weeks and 52 weeks, respectively, and fourth quarter 2023 and fiscal 2023 consisted of 14 weeks and 53 weeks, respectively. The additional week in the fourth quarter 2023 and fiscal 2023 included Christmas day, resulting in six additional operating days.

 
PORTILLO’S INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except common share and per common share data)
 
 December 29, 2024 December 31, 2023
ASSETS   
CURRENT ASSETS:   
Cash and cash equivalents and restricted cash$22,876 $10,438
Accounts and tenant improvement receivables 14,794  14,183
Inventories 7,915  8,733
Prepaid expenses 7,066  8,565
Total current assets 52,651  41,919
Property and equipment, net 358,975  295,793
Operating lease assets 222,390  193,825
Goodwill 394,298  394,298
Trade names 223,925  223,925
Other intangible assets, net 26,098  28,911
Equity method investment 16,056  16,684
Deferred tax assets 197,409  184,701
Other assets 8,284  5,485
Total other assets 866,070  854,004
TOTAL ASSETS$1,500,086 $1,385,541
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
CURRENT LIABILITIES:   
Accounts payable$45,516 $33,189
Current portion of long-term debt 11,250  7,500
Short-term debt 25,000  15,000
Current portion of Tax Receivable Agreement liability 7,686  4,428
Deferred revenue 7,032  7,180
Short-term lease liability 6,013  5,577
Accrued expenses 33,072  32,039
Total current liabilities 135,569  104,913
LONG-TERM LIABILITIES:   
Long-term debt, net of current portion 275,422  283,923
Tax Receivable Agreement liability 316,893  295,390
Long-term lease liability 278,540  238,414
Other long-term liabilities 3,559  2,791
Total long-term liabilities 874,414  820,518
Total liabilities 1,009,983  925,431
    
COMMITMENTS AND CONTINGENCIES   
STOCKHOLDERS’ EQUITY:   
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued and outstanding —  —
Class A common stock, $0.01 par value per share, 380,000,000 shares authorized, and 63,674,579 and 55,502,375 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively 637  555
Class B common stock, $0.00001 par value per share, 50,000,000 shares authorized, and 10,732,800 and 17,472,926 shares issued and outstanding as of December 29, 2024 and December 31, 2023, respectively —  —
Additional paid-in-capital 357,295  308,212
Retained earnings 43,129  13,612
Total stockholders' equity attributable to Portillo's Inc. 401,061  322,379
Non-controlling interest 89,042  137,731
Total stockholders' equity 490,103  460,110
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,500,086 $1,385,541


 
PORTILLO’S INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
 Fiscal Years Ended
 December 29, 2024 December 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net income$35,076  $24,818 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 27,297   24,313 
Amortization of debt issuance costs and discount 873   1,001 
Loss on sales of assets 528   592 
Equity-based compensation 11,151   15,542 
Deferred income tax expense 6,771   3,249 
Tax Receivable Agreement liability adjustment (9,149)  (3,349)
Gift card breakage (852)  (917)
Asset impairment 657   — 
Loss on debt extinguishment —   3,465 
Changes in operating assets and liabilities:   
Accounts receivables 862   (679)
Receivables from related parties (46)  (82)
Inventory 818   (1,346)
Other current assets 357   (3,643)
Operating lease asset 8,469   7,402 
Accounts payable 11,284   209 
Accrued expenses and other liabilities 1,827   3,021 
Operating lease liabilities (3,178)  (2,033)
Deferred lease incentives 5,553   1,501 
Other assets and liabilities (258)  (2,283)
NET CASH PROVIDED BY OPERATING ACTIVITIES 98,040   70,781 
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchase of property and equipment (88,191)  (87,918)
Proceeds from the sale of property and equipment 77   81 
NET CASH USED IN INVESTING ACTIVITIES (88,114)  (87,837)
CASH FLOWS FROM FINANCING ACTIVITIES:   
Proceeds from short-term debt, net 10,000   15,000 
Proceeds from long-term debt —   300,000 
Payments of long-term debt (5,625)  (328,053)
Proceeds from equity offering, net of underwriting discounts 114,960   179,306 
Repurchase of outstanding equity / Portillo's OpCo units (114,960)  (179,306)
Distributions paid to non-controlling interest holders (838)  (399)
Proceeds from stock option exercises 4,332   1,879 
Employee withholding taxes related to net settled equity awards (1,433)  (1,505)
Proceeds from Employee Stock Purchase Plan purchases 508   527 
Payments of Tax Receivable Agreement liability (4,432)  (813)
Payment of deferred financing costs —   (3,569)
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 2,512   (16,933)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 12,438   (33,989)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD 10,438   44,427 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD$22,876  $10,438 

Note: We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fiscal 2024 consisted of 52 weeks and fiscal 2023 consisted of 53 weeks. The 53rd week in fiscal 2023 included Christmas day, resulting in six additional operating days.

 
PORTILLO’S INC
SELECTED OPERATING DATA AND NON-GAAP FINANCIAL MEASURES
 
 Quarter Ended Fiscal Years Ended
 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023
Total Restaurants (a) 94   84   94   84 
AUV (in millions) (a) N/A   N/A  $8.7  $9.1 
Change in same-restaurant sales (b)(c) 0.4%  4.4%  (0.6)%  5.7%
Adjusted EBITDA (in thousands) (b)$25,205  $26,142  $104,760  $102,282 
Adjusted EBITDA Margin (b) 13.7%  13.9%  14.7%  15.0%
Restaurant-Level Adjusted EBITDA (in thousands) (b)$45,228  $45,736  $168,114  $165,171 
Restaurant-Level Adjusted EBITDA Margin (b) 24.5%  24.3%  23.7%  24.3%

Note: We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fourth quarter 2024 and fiscal 2024 consisted of 13 weeks and 52 weeks, respectively, and fourth quarter 2023 and fiscal 2023 consisted of 14 weeks and 53 weeks, respectively. The additional week in the fourth quarter 2023 and fiscal 2023 included Christmas day, resulting in six additional operating days.
(a) Includes a restaurant that is owned by C&O of which Portillo’s owns 50% of the equity. Total restaurants indicated are as of December 29, 2024. AUV for fiscal 2024 and fiscal 2023 consist of 52 weeks and 53 weeks, respectively.
(b) Excludes a restaurant that is owned by C&O of which Portillo’s owns 50% of the equity.
(c) For the fourth quarter 2024, same-restaurant sales compares the 13 weeks from September 30, 2024 through December 29, 2024 to the 13 weeks from October 2, 2023 through December 31, 2023. For the fourth quarter 2023, same-restaurant sales compares the 14 weeks from September 25, 2023 through December 31, 2023 to the 14 weeks from September 26, 2022 through January 1, 2023. For fiscal 2024, same-restaurant sales compares the 52 weeks from January 1, 2024 through December 29, 2024 to the 52 weeks from January 2, 2023 through December 31, 2023. For fiscal 2023, same-restaurant sales compares the 53 weeks from December 26, 2022 through December 31, 2023 to the 53 weeks from December 27, 2021 through January 1, 2023.

PORTILLO’S INC.
NON-GAAP FINANCIAL MEASURES

To supplement the consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA Margin, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. Accordingly, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are not required by, nor presented in accordance with GAAP, but rather are supplemental measures of operating performance of our restaurants. You should be aware that these measures are not indicative of overall results for the Company and that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. These measures are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. These measures are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate, but also have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues.

We use Adjusted EBITDA and Adjusted EBITDA Margin (i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management’s performance when determining incentive compensation.

We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance.

We are unable to reconcile the long-term outlook for Adjusted EBITDA to net income (loss), the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include cost of goods sold (excluding depreciation and amortization), labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenue.

We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate.

See below for a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA and Adjusted EBITDA Margin (in thousands):

 Quarter Ended Fiscal Years Ended
 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023
Net income$12,429  $9,647  $35,076  $24,818 
Net income margin 6.7%  5.1%  4.9%  3.7%
Depreciation and amortization 6,568   6,525   27,297   24,313 
Interest expense 6,033   6,931   25,616   27,470 
Interest income (105)  (96)  (309)  (212)
Loss on debt extinguishment —   —   —   3,465 
Income tax expense (benefit) 1,901   (357)  6,799   3,248 
EBITDA 26,826   22,650   94,479   83,102 
Deferred rent (1) 1,398   1,315   5,255   5,096 
Equity-based compensation 1,928   3,498   11,151   15,542 
Cloud-based software implementation costs (2) 166   252   679   401 
Amortization of cloud-based software implementation costs (3) 219   —   586   — 
Other loss (4) 1,054   79   1,184   590 
Transaction-related fees and expenses (5) 39   6   575   900 
Tax Receivable Agreement liability adjustment (6) (6,425)  (1,658)  (9,149)  (3,349)
Adjusted EBITDA$25,205  $26,142  $104,760  $102,282 
Adjusted EBITDA Margin (7) 13.7%  13.9%  14.7%  15.0%

Note: We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fourth quarter 2024 and fiscal 2024 consisted of 13 weeks and 52 weeks, respectively, and fourth quarter 2023 and fiscal 2023 consisted of 14 weeks and 53 weeks, respectively. The additional week in the fourth quarter 2023 and fiscal 2023 included Christmas day, resulting in six additional operating days.
(1) Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.
(2) Represents non-capitalized third-party consulting and software licensing costs incurred in connection with the implementation of new enterprise resource planning ("ERP") and human capital management ("HCM") systems which are included within general and administrative expenses.
(3) Represents amortization of capitalized cloud-based ERP system implementation costs that are included within general and administrative expenses.
(4) Represents loss on disposal of property and equipment and a technology asset impairment charge included within other income, net.
(5) Represents certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees included within general and administrative expenses.
(6) Represents remeasurement of the Tax Receivable Agreement liability.
(7) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

See below for a reconciliation of operating income, the most directly comparable GAAP measure, to Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin (in thousands):

 Quarter Ended Fiscal Years Ended
 December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023
Operating income$13,833  $14,467  $58,033  $55,440 
Operating income margin 7.5%  7.7%  8.2%  8.2%
Plus:       
General and administrative expenses 20,303   21,550   75,089   78,835 
Pre-opening expenses 3,966   3,990   9,236   9,019 
Depreciation and amortization 6,568   6,525   27,297   24,313 
Net income attributable to equity method investment (306)  (391)  (1,229)  (1,401)
Other loss (income), net 864   (405)  (312)  (1,035)
Restaurant-Level Adjusted EBITDA$45,228  $45,736  $168,114  $165,171 
Restaurant-Level Adjusted EBITDA Margin (1) 24.5%  24.3%  23.7%  24.3%

Note: We use a 52- or 53-week fiscal year ending on the Sunday on or prior to December 31. Fourth quarter 2024 and fiscal 2024 consisted of 13 weeks and 52 weeks, respectively, and fourth quarter 2023 and fiscal 2023 consisted of 14 weeks and 53 weeks, respectively. The additional week in the fourth quarter 2023 and fiscal 2023 included Christmas day, resulting in six additional operating days.
(1) Restaurant-Level Adjusted EBITDA Margin is defined as Restaurant-Level Adjusted EBITDA divided by Revenues, net


FAQ

What were Portillo's (PTLO) Q4 2024 financial results?

In Q4 2024, Portillo's reported total revenue of $184.6 million (down 1.7% year-over-year), same-restaurant sales increase of 0.4%, and net income of $12.4 million (up $2.8 million from Q4 2023). The quarter was 13 weeks compared to 14 weeks in the prior year period.

How many new restaurants did Portillo's (PTLO) open in fiscal 2024?

Portillo's opened 10 new restaurants in fiscal 2024 across Arizona, Florida, Illinois, Michigan, and Texas markets, bringing its total restaurant count to 94 locations including one owned by C&O.

What is Portillo's (PTLO) expansion plan for 2025?

Portillo's plans to open 12 new restaurants in fiscal 2025, focusing primarily on markets outside Chicagoland with favorable economic conditions, particularly in the Sunbelt region and Texas. The company also plans to enter the Atlanta, Georgia market.

How did Portillo's (PTLO) address inflation in 2024?

To mitigate inflationary cost pressures, Portillo's implemented targeted menu price adjustments throughout 2024, including a 1.5% increase in January, another 1.5% increase at the end of March, a 1.0% increase in June, and an additional 1.5% increase in January 2025.

What was Portillo's (PTLO) same-restaurant sales performance in fiscal 2024?

Portillo's reported a 0.6% decrease in same-restaurant sales for fiscal 2024, compared to a 5.7% increase in fiscal 2023. The decline was attributed to a 3.2% decrease in transactions, partially offset by a 2.6% increase in average check.

What is Portillo's (PTLO) Restaurant of the Future concept mentioned in the report?

The Restaurant of the Future (ROTF) is Portillo's 6,250 square foot prototype restaurant. In fiscal 2024, the company opened two ROTF concept locations in the Texas market as part of its expansion strategy.

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PTLO Latest News

Mar 3, 2025
Portillo's Unveils First-Ever Loyalty Program: Direct to Digital Wallets, No App Required
Feb 5, 2025
Portillo’s Inc. to Announce Fourth Quarter 2024 Results on Tuesday, February 25, 2025
Jan 10, 2025
Portillo’s Adds Industry Veteran Jack Hartung to Board of Directors
Dec 2, 2024
Portillo's Appoints Tony Darden as Chief Operating Officer
Nov 22, 2024
Portillo’s Inc. to Participate in Three Investor Conferences

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