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Portillo's Q1 2025 Earnings Report
Portillo's Inc. announced its first quarter financial results for 2025, reporting an increase in total revenue and operating income, but a decrease in net income and adjusted EBITDA.
Key Takeaways
Portillo's Inc. reported a 6.4% increase in total revenue to $176.4 million for the first quarter of 2025, driven by new restaurant openings and same-restaurant sales growth. Operating income also saw a slight increase, but net income and Adjusted EBITDA decreased compared to the prior year.
Total revenue increased by 6.4% to $176.4 million, primarily due to new restaurant openings and a 1.8% increase in same-restaurant sales.
Operating income rose by $0.3 million to $10.4 million, an increase of 2.8% from the prior year.
Net income decreased by $1.4 million to $4.0 million, a 25.3% decline, mainly due to an increase in income tax expense.
Restaurant-Level Adjusted EBITDA increased by $0.3 million to $36.7 million, while Adjusted EBITDA decreased by $0.6 million to $21.2 million.
Forward Guidance
Portillo's Inc. updated its financial targets for fiscal 2025, maintaining the unit growth target but adjusting revenue and same-restaurant sales growth expectations.
Positive Outlook
- Maintaining target of 12 new restaurant openings in fiscal 2025.
- Updated same-restaurant sales growth target to 1% to 3% (from Flat to +2%).
- Updated revenue growth target to 10% to 12% (from 11% to 12%).
- General and administrative expenses target reduced to $80-$82 million (from $82-$84 million).
- Capital expenditures target maintained at $97-$100 million.
Challenges Ahead
- Adjusted EBITDA growth target narrowed to 5% to 8% (from 6% to 8%).
- Commodity inflation target maintained at 3% to 5%.
- Labor inflation target maintained at 3% to 4%.
- Restaurant-level adjusted EBITDA margin target maintained at 22.5% to 23%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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