Q3 2024 Portillos Inc Earnings Call Transcript
Key Points
- Portillos Inc (PTLO) achieved a 7% top-line growth, driven by expansion in Texas and the Sun Belt.
- The company successfully maintained restaurant-level margins at 23.5% by controlling labor and food costs.
- Portillos Inc (PTLO) rolled out kiosks across all restaurants, which have shown positive guest adoption and are expected to enhance operational efficiency.
- The company opened its first Houston area restaurant, marking a significant milestone in its expansion strategy.
- Portillos Inc (PTLO) plans to grow its restaurant count by 12% to 15% next year, indicating a strong development pipeline and growth strategy.
- Comparable sales for the full year are expected to be approximately negative 1%, reflecting challenges in the competitive discounting environment.
- The company experienced a 0.9% decrease in same-restaurant sales, driven by a 3.5% decrease in transactions.
- Food, beverage, and packaging costs increased to 33.7% of revenues due to a 3.6% rise in commodity prices.
- Labor costs as a percentage of revenues increased to 25.8%, influenced by lower transactions and incremental wage and benefits costs.
- Restaurant level adjusted EBITDA margins declined by 160 basis points year over year, reflecting softer sales and increased operating expenses.
Greetings, and welcome to the Portilloâs third-quarter earnings conference call. (Operator Instructions)
As a reminder this conference is being recorded. It is now my pleasure to introduce Kyle Nelsen, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning everyone, and welcome to our fiscal third quarter 2024 earnings call. You can find our 10-Q, earnings press release, and supplemental presentation on investors.portillos.com. With me on the call today is Michael Osanloo, President and Chief Executive Officer; and Michelle Hook, Chief Financial Officer.
Any commentary made here about our future results and business conditions are forward-looking statements, which are based on managementâs current expectations and are not guarantees of future performance. We do not update these forward-looking statements unless required by law. Our 10-K identifies risk factors that may cause our actual results to vary
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