Q1 2025 Portillos Inc Earnings Call Transcript
Key Points
- Portillos Inc (PTLO) reported a 6.4% increase in total revenue for Q1 2025, reaching $176.4 million.
- The company launched a successful advertising campaign in Dallas-Fort Worth, increasing brand awareness by 10% and driving a high-single-digit sales increase.
- Portillos Inc (PTLO) introduced the Portillo's Perks loyalty program, which has shown promising initial results in driving customer engagement.
- The company is testing breakfast offerings in select Chicagoland locations, with positive early feedback from customers.
- Portillos Inc (PTLO) plans to open 12 new restaurants in 2025, including innovative formats like the Restaurant of the Future 1.0 and a walk-up location in Central Florida.
- New restaurants in markets with lower brand awareness, such as Houston, experienced slower starts, impacting overall revenue growth expectations.
- Labor costs as a percentage of revenue increased to 26.6% in Q1 2025, driven by lower transactions and higher benefit expenses.
- Commodity inflation, particularly in beef, dairy, and chicken, led to increased food, beverage, and packaging costs.
- Restaurant-level adjusted EBITDA margins decreased by 110 basis points to 20.8% in Q1 2025 compared to the previous year.
- The company faces challenges with macroeconomic pressures, including declining consumer confidence and weather-related disruptions.
Hello and thank you for standing by. Welcome to the fiscal first-quarter 2025 Portillo's conference call and webcast. I would now like to turn the call over to Kyle Nelson, Vice President of Investor Relations at Portillo's to begin. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to our fiscal first-quarter 2025 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 management's 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 materially from these forward-looking statements.
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