Q4 2025 Portillos Inc Earnings Call Transcript
Key Points
- Portillos Inc (PTLO) reported impressive sales of over $2 million in the first eight weeks at their new Kennesaw location, showcasing strong market entry potential.
- The company has successfully implemented a reduced cost restaurant format, with the Kennesaw location being 20% smaller than previous models, which could lead to better unit economics.
- Portillos Inc (PTLO) has over 2 million members enrolled in its Perks program, which is showing strong results in driving traffic and sales.
- The company has taken steps to improve labor management and profitability in lower-volume Texas restaurants, showing positive results in the final period of the quarter.
- Portillos Inc (PTLO) has appointed Brett Patterson as the new CEO, bringing extensive industry experience and a strategic mindset to lead the company's next growth phase.
- Same-restaurant sales declined by 3.3% in the fourth quarter, primarily due to a decrease in transactions.
- The Texas market expansion has been a headwind, impacting consolidated restaurant level margins by 180 basis points in the fourth quarter.
- Food, beverage, and packaging costs increased due to a 4% rise in commodity prices, affecting overall profitability.
- Labor costs as a percentage of revenues increased due to lower transactions and incremental wage increases.
- Portillos Inc (PTLO) anticipates continued headwinds in Texas and a $4.5 million additional bonus expense, which could pressure restaurant level adjusted EBITDA margins in 2026.
Hello, and thank you for standing by. Welcome to the Portillo's fourth 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.
Thanks, operator, and good morning, everyone. Welcome to the Portillo's fourth quarter and full year 2025 earnings call. With me today are Mike Miles, Chairman of the Board and Principal Executive Officer; and Michelle Hook, Chief Financial Officer.
You can find our 10-K, 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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