Q3 2025 Portillos Inc Earnings Call Transcript
Key Points
- Portillos Inc (PTLO) reported a revenue increase of 1.8% year-over-year, driven by non-comp restaurants contributing $5.6 million to the total increase.
- The company has successfully launched the Portillo's Perks loyalty program, which has been effective in stimulating visits and driving customer engagement.
- Portillos Inc (PTLO) is focusing on a strategic reset to improve guest experiences by slowing down development and refocusing on quality service.
- The company is deploying a smaller-format restaurant model that can deliver good unit economics with sales of $4 million to $5 million.
- Portillos Inc (PTLO) is planning to open its 100th restaurant in Kennesaw, Georgia, marking a significant milestone in its expansion journey.
- Same-restaurant sales declined by 0.8% due to a 2.2% decrease in transactions, partially offset by a 1.4% increase in average check.
- Food, Beverage, and Packaging costs increased to 34.5% of revenues due to a 6.3% rise in commodity prices, particularly in beef, chicken, and pork.
- Labor costs as a percentage of revenues increased to 26.6%, driven by lower transactions, wage increases, and higher benefit costs.
- Restaurant-level adjusted EBITDA decreased by $5.3 million, with margins dropping 330 basis points to 20.2% compared to the prior year.
- The company recorded a noncash impairment charge of $2.2 million related to its legacy Barnelli's trade name, impacting overall financial performance.
Hello, and thank you for standing by. Welcome to Portillo's Third Quarter 2025 Conference Call and Webcast.
I would now like to turn the call over to Chris Brandon, Vice President of Investor Relations at Portillo's to begin.
Thank you, Operator. Good morning, everyone, and welcome to the Portillo's Third Quarter 2025 Earnings Call. With me today are Mike Miles, Chairman of the Board and Interim Chief Executive Officer; and Michelle Hook, Chief Financial Officer. You can find our 10-Q, earnings press release and supplemental presentation on investors.portillos.com.
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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