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PTLO (Portillos) Degree of Operating Leverage : 2.60 (As of Mar. 2025)


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What is Portillos Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Portillos's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.60. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Portillos's Degree of Operating Leverage or its related term are showing as below:

PTLO's Degree of Operating Leverage is ranked worse than
62.32% of 345 companies
in the Restaurants industry
Industry Median: 1.24 vs PTLO: 2.60

Portillos Degree of Operating Leverage Historical Data

The historical data trend for Portillos's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Portillos Degree of Operating Leverage Chart

Portillos Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -3.43 -3.46 10.77 1.21 4.78

Portillos Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.52 3.24 2.74 4.78 2.60

Competitive Comparison of Portillos's Degree of Operating Leverage

For the Restaurants subindustry, Portillos's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Portillos's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Portillos's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Portillos's Degree of Operating Leverage falls into.


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Portillos Degree of Operating Leverage Calculation

Portillos's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 67.853 (Mar. 2025) / 60.662 (Mar. 2024) - 1 )/( 721.16 (Mar. 2025) / 689.676 (Mar. 2024) - 1 )
=0.1185/0.0457
=2.60***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Portillos  (NAS:PTLO) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Portillos Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Portillos's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Portillos Business Description

Traded in Other Exchanges
N/A
Address
2001 Spring Road, Suite 400, Oak Brook, IL, USA, 60523
Portillos Inc serves the Chicago street food industry through high-energy and multichannel restaurants designed to ignite the senses and create memorable dining experiences. It owns and operates fast-casual restaurants in the United States, along with two food production commissaries in Illinois. Its menu includes hot dogs, beef and sausage sandwiches, sandwiches and ribs, salads, burgers, chicken, Barnelli's pasta, sides and soup, and desserts and shakes.
Executives
Berkshire Fund Viii-a, L.p. director, 10 percent owner C/O EIGHTH BERKSHIRE ASSOCIATES LLC, 200 CLARENDON STREET, BOSTON MA 02116
Nicholas Anthony Scarpino officer: See Remarks C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michael Osanloo director, officer: President & CEO C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523
Derrick Lee Pratt officer: Chief Operating Officer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Kelly M Kaiser officer: General Counsel and Secretary 2001 SPRING RD, STE 400, OAK BROOK IL 60523-1903
Cook George Richard Iii officer: Senior VP, Technology C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Jill Francine Waite officer: Chief Human Resources Officer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michael K Ellis officer: Chief Development Officer C/O EINSTEIN NOAH RESTAURANT GROUP, INC., 555 ZANG STREET, SUITE 300, LAKEWOOD CO 80228
Paulette R. Dodson director PETSMART, INC, 19601 N 27TH AVE, PHOENIX AZ 85027
Susan Beth Shelton officer: General Counsel and Secretary C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michael Miles director 500 STAPLES DOVE, FRAMINGHAM MA 01702
Eighth Berkshire Associates Llc director, 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116-5009
Gerard Johan Hart director 6040 DUTCHMANS LANE, SUITE 200, LOUISVILLE KY 40205
Joshua Adam Lutzker director C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903
Michelle Greig Hook officer: CFO & Treasurer C/O PORTILLO'S HOT DOGS, LLC, 2001 SPRING ROAD, SUITE 400, OAK BROOK IL 60523-1903