The earnings call highlighted continued revenue growth driven by new restaurant openings and successful kiosk implementations. However, the company faces challenges with declining same-restaurant sales and increased operating costs. Management remains optimistic about future growth and cost management strategies, despite macroeconomic headwinds.

Company Guidance

During the third quarter 2024 earnings call for Portillo's (PTLO), the company provided a detailed outlook for the remainder of the year and beyond, highlighting several key metrics. Portillo's reported a 6.9% increase in revenues, reaching $178.3 million, despite a 0.9% decrease in same-restaurant sales. The decline in same-restaurant sales was attributed to a 3.5% drop in transactions, offset by a 2.6% increase in average check size. The company maintained strong restaurant-level margins at 23.5% and achieved an adjusted EBITDA of $27.9 million. Portillo's plans to open 10 restaurants in 2024 and expects a 12% to 15% growth in restaurant count next year. Despite the challenging macroeconomic environment and competitive discounting pressures, the company remains focused on strategic initiatives such as the successful deployment of kiosks in all restaurants, which they anticipate will boost transactions and customer engagement. Additionally, Portillo's aims to improve operational efficiency and optimize its real estate strategy to enhance returns. The company also conveyed confidence in maintaining pricing power, with no further price increases planned for the fourth quarter, and projected labor inflation of approximately 3% for the year. Overall, Portillo's emphasized its commitment to long-term growth and profitability while navigating the current market dynamics.

Revenue Growth

Revenue for Q3 2024 increased by 6.9% to $178.3 million, driven by the opening of new restaurants.

Kiosk Rollout Success

The rollout of kiosks in all restaurants was successful, leading to higher attach rates for add-ons such as cheese sauce, peppers, fries, and drinks.

First Houston Restaurant Opening

Opened the first Houston area restaurant, with sales in line with previous successful openings in the Dallas area.

Adjusted EBITDA Growth

Adjusted EBITDA increased by 2.3% to $27.9 million in Q3 2024, demonstrating strong cost management.

Cash Flow Increase

Cash from operations increased by 34.3% year-over-year to $72 million.

Future Growth Plans

Plans to grow the restaurant count by 12% to 15% next year, with new builds focusing on smaller, more efficient designs.

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Portillo's (PTLO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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PTLO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 18, 2021	2021 (Q3)	0.09 / 0.09	0.079	13.92% (+0.01)	―	―
Mar 10, 2022	2021 (Q4)	-0.44 / -0.52	-0.011	-4627.27% (-0.51)	―	―
May 05, 2022	2022 (Q1)	-0.03 / 0.00	0.004	―	―	―
Aug 04, 2022	2022 (Q2)	0.07 / 0.13	0.269	-51.67% (-0.14)	―	―
Nov 03, 2022	2022 (Q3)	0.03 / 0.04	0.09	-55.56% (-0.05)
Mar 02, 2023	2022 (Q4)	0.02 / 0.08	-0.52	115.38% (+0.60)
May 04, 2023	2023 (Q1)	0.02 / -0.01	0	―
Aug 03, 2023	2023 (Q2)	0.13 / 0.12	0.13	-7.69% (-0.01)
Nov 02, 2023	2023 (Q3)	0.07 / 0.07	0.04	75.00% (+0.03)
Feb 27, 2024	2023 (Q4)	0.04 / 0.13	0.08	62.50% (+0.05)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PTLO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	$13.65	$13.49	-1.17%
Aug 06, 2024	$8.88	$9.67	+8.90%
May 07, 2024	$12.12	$10.61	-12.46%
Feb 27, 2024	$13.75	$15.90	+15.64%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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