Third Quarter 2025 Performance Highlights (vs. Third Quarter 2024):
Total revenue of $181.4 million, an increase of 1.8% or $3.2 million
Same-restaurant sales decrease of -0.8%
Operating income of $5.4 million, a decrease of $10.6 million
Net income of $0.8 million, a decrease of $8.0 million
Restaurant-Level Adjusted EBITDA(1) of $36.7 million, a decrease of $5.3 million
Adjusted EBITDA(1) of $21.4 million, a decrease of $6.5 million
(1) 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.
"Portillo's took a number of steps to reset our growth model in the third quarter, as we proceed at a more measured pace in new markets while pursuing better unit economics," said Mike Miles, Chairman of the Board and Interim President and Chief Executive Officer of Portillo's. "In the meantime, our restaurant operators continue to deliver outstanding food and guest experiences, and they remain the foundation of this great brand."
Third Quarter 2025 Financial and Operating Results
Revenues for the quarter ended September 28, 2025 were $181.4 million compared to $178.3 million for the quarter ended September 29, 2024, an increase of $3.2 million or 1.8%. The increase in revenues was primarily attributed to the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025, partially offset by a decrease in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined below) contributed $5.6 million of the total year-over-year increase. Same-restaurant sales decreased 0.8%, or $1.2 million in the quarter. The same-restaurant sales decline was attributable to a 2.2% decrease in transactions, partially offset by an increase in average check of 1.4%. The higher average check was driven by an approximate 3.2% increase in certain menu prices, partially offset by a 1.8% decrease in product mix. For the purpose of calculating same-restaurant sales for the quarter ended September 28, 2025, sales for 76 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.
Total restaurant operating expenses for the quarter ended September 28, 2025 were $144.7 million compared to $136.3 million for the quarter ended September 29, 2024, an increase of $8.4 million or 6.2%. The increase was primarily driven by the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025. Additionally, food, beverage and packaging costs were negatively impacted by a 6.3% increase in commodity prices. The increase in labor expense was driven by incremental investments to support our team members. Lastly, the increase in other operating expenses was due to the increase in repairs and maintenance, utilities, and advertising expense, partially offset by lower cleaning expenses due to vendor renegotiation.
General and administrative expenses for the quarter ended September 28, 2025 were $20.0 million compared to $18.3 million for the quarter ended September 29, 2024, an increase of $1.7 million or 9.4%. This increase was primarily driven by $3.3 million in dead site costs. This increase was partially offset by a $1.1 million net benefit resulting from the CEO transition. This benefit was due to the forfeiture of equity awards, offset by other transition expense.
Operating income for the quarter ended September 28, 2025 was $5.4 million compared to $16.0 million for the quarter ended September 29, 2024, a decrease of $10.6 million or 66.0% primarily due to the aforementioned change in revenue and expenses and legacy Barnelli's trade name impairment charges of $2.2 million.
Net income for the quarter ended September 28, 2025 was $0.8 million compared to a net income of $8.8 million for the quarter ended September 29, 2024, a decrease of $8.0 million or 91.1%. The decrease in net income was primarily due to a decrease in operating income of $10.6 million due to the aforementioned factors and a decrease in the tax receivable agreement liability adjustment of $2.1 million, partially offset by a decrease in income taxes of $3.8 million and interest expense of $0.8 million.
Restaurant-Level Adjusted EBITDA* for the quarter ended September 28, 2025 was $36.7 million compared to $41.9 million for the quarter ended September 29, 2024, a decrease of $5.3 million or 12.5%
Adjusted EBITDA* for the quarter ended September 28, 2025 was $21.4 million compared to $27.9 million for the quarter ended September 29, 2024, a decrease of $6.5 million or 23.4%.
*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.
Third Quarter 2025 Development Highlights
During the quarter ended September 28, 2025, we opened four restaurants. Subsequent to September 28, 2025, we opened one additional restaurant, bringing our total restaurant count to 99, as of the filing of this press release, including a restaurant owned by C&O of which Portillo's owns 50% of the equity. We plan to open three more restaurants in the fourth quarter, including our first location in Georgia, for a total of 8 new restaurants opened in the fiscal year 2025.
During the third quarter, we opened our first in-line restaurant format. With the exception of the one in-line restaurant, all new restaurant openings in 2025 will be our "Restaurant of the Future" (RoTF 1.0) design, which is a smaller square footage prototype featuring a shorter, more efficient production line designed to reduce costs and provide fast service to our guests.
Location
Opening Month
Fiscal Quarter Opened
Tomball, Texas
July 2025
Q3 2025
Stafford, Texas
August 2025
Q3 2025
Grand Prairie, Texas
August 2025
Q3 2025
Middleton, Florida (In-Line)
August 2025
Q3 2025
Chandler, Arizona
November 2025
Q4 2025
Fiscal 2025 Financial Targets
Based on current expectations, management has updated financial targets for fiscal 2025 as follows:
Current Targets
New Units
8 new units
Same-restaurant sales
(1%) to (1.5%)
Revenue
$730-$733 million
Commodity inflation
3% to 5%
Labor inflation
3% to 4%
Restaurant-level adjusted EBITDA margin*
21.0% to 21.5%
General and administrative expenses
$76-$79 million
Pre-opening expenses
Approximately $9 million
Adjusted EBITDA*
$90-$94 million
Capital expenditures
$97-$100 million
*We are unable to reconcile the financial target for adjusted EBITDA 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.
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 for the Comparable Restaurant Base, which is defined as the number of restaurants open for at least 24 full fiscal periods. For the quarters ended September 28, 2025 and September 29, 2024, there were 76 and 70 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 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 third quarter on Tuesday, November 4, 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 844-512-2921, and using passcode #13748478. The webcast replay will be available at investors.portillos.com shortly after the call has concluded.
About Portillo's
Portillo's (NASDAQ:PTLO) is a one-of-a-kind brand that has grown from a small hot dog trailer in Chicago to more than 90 restaurants across 10 states. Known for its unique menu of craveable Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and iconic chocolate cake, Portillo's is beloved in both its home of Chicagoland and across new and growing markets. Portillo's operates a company-owned model of not just restaurants, but experience-focused destinations that blend dine-in, drive-thru, takeout and delivery to serve our guests with the food they crave. And now, after six decades of success and counting, Portillo's is on a mission to bring its iconic food and unforgettable dining experience to guests across the country.
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 in relation to trade and tax policy changes and other macroeconomic uncertainty, including, inflation, fluctuating interest rates, stock market volatility, recession concerns, and other factors;
risks associated with our recently announced search for a new Chief Executive Officer and the related transition;
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, including as a result of, among other things, 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:Chris Brandon, Vice President of Investor
Media Contact:Sara Wirth, Director of Communications &
PORTILLO'S INCCONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except common share and per common share data)
Quarter Ended
Three Quarters Ended
September 28, 2025
September 29, 2024
September 28, 2025
September 29, 2024
REVENUES, NET
$
181,428
100.0
%
$
178,252
100.0
%
$
546,321
100.0
%
$
525,945
100.0
%
COST AND EXPENSES:
Restaurant operating expenses:
Food, beverage and packaging costs
62,619
34.5
%
60,136
33.7
%
187,471
34.3
%
178,809
34.0
%
Labor
48,263
26.6
%
45,945
25.8
%
143,471
26.3
%
135,659
25.8
%
Occupancy
10,524
5.8
%
9,172
5.1
%
30,511
5.6
%
27,723
5.3
%
Other operating expenses
23,331
12.9
%
21,053
11.8
%
67,040
12.3
%
60,868
11.6
%
Total restaurant operating expenses
144,737
79.8
%
136,306
76.5
%
428,493
78.4
%
403,059
76.6
%
General and administrative expenses
20,025
11.0
%
18,305
10.3
%
57,726
10.6
%
54,786
10.4
%
Pre-opening expenses
3,260
1.8
%
1,747
1.0
%
5,465
1.0
%
5,270
1.0
%
Depreciation and amortization
7,312
4.0
%
6,679
3.7
%
21,489
3.9
%
20,729
3.9
%
Net income attributable to equity method investment
(452
)
(0.2
)%
(383
)
(0.2
)%
(998
)
(0.2
)%
(923
)
(0.2
)%
Other loss (income), net
1,112
0.6
%
(390
)
(0.2
)%
800
0.1
%
(1,176
)
(0.2
)%
OPERATING INCOME
5,434
3.0
%
15,988
9.0
%
33,346
6.1
%
44,200
8.4
%
Interest expense
5,664
3.1
%
6,450
3.6
%
17,139
3.1
%
19,583
3.7
%
Interest income
(118
)
(0.1
)%
(50
)
—
%
(268
)
—
%
(204
)
—
%
Tax Receivable Agreement liability adjustment
353
0.2
%
(1,724
)
(1.0
)%
(2,132
)
(0.4
)%
(2,724
)
(0.5
)%
(LOSS) INCOME BEFORE INCOME TAXES
(465
)
(0.3
)%
11,312
6.3
%
18,607
3.4
%
27,545
