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Jun 30, 2024
Portillo's Q2 2024 Earnings Report
Reported financial results with sequential improvement in revenue and margin, prioritizing sales and transaction growth.
Key Takeaways
Portillo's Inc. reported a 7.5% increase in total revenue to $181.9 million, driven by new restaurant openings. However, same-restaurant sales decreased by 0.6%. Operating income rose to $18.1 million, while net income decreased to $8.5 million. The company is on track to open at least 10 restaurants in 2024 and successfully lower the build costs.
Total revenue increased by 7.5% to $181.9 million.
Same-restaurant sales decreased by 0.6%.
Operating income increased to $18.1 million.
Net income decreased to $8.5 million.
Forward Guidance
Portillo's provided updated financial targets for 2024.
Positive Outlook
- Unit growth target increased to 10+ new units.
- Same-restaurant sales expected to be flat to slightly positive.
- Commodity inflation expected to remain in the mid-single digits.
- Labor inflation expected to remain in the mid-single digits.
- General and administrative expenses are projected to be $82 - $84 million
Challenges Ahead
- Pre-opening expenses are projected to be $10.0 - $10.5 million.
- Capital expenditures are projected to be $85 - $88 million.
- Restaurant-level adjusted EBITDA margin expected to remain at 23% - 24%.
- Unspecified variability and difficulty in making accurate forecasts and projections.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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