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Jun 29, 2025
Portillo's Q2 2025 Earnings Report
Portillo's reported its second quarter 2025 financial results, showing an increase in total revenue and net income, despite a decrease in operating income.
Key Takeaways
Portillo's delivered a solid performance in the second quarter of 2025, with total revenue increasing by 3.6% to $188.5 million and net income rising by 17.7% to $10.0 million. The company managed restaurant-level margins effectively amidst a challenging traffic environment, driven by new restaurant openings and a positive same-restaurant sales increase of 0.7%.
Total revenue increased by 3.6% to $188.5 million, primarily due to new restaurant openings and a rise in same-restaurant sales.
Net income grew by 17.7% to $10.0 million, influenced by a tax receivable agreement liability adjustment and lower interest expense.
Same-restaurant sales increased by 0.7%, driven by a 2.1% increase in average check, partially offset by a 1.4% decrease in transactions.
Operating income decreased by 3.2% to $17.5 million, mainly due to changes in revenue and expenses, despite a decrease in pre-opening expenses.
Forward Guidance
Portillo's updated its financial targets for fiscal year 2025, maintaining unit growth and same-restaurant sales expectations, while adjusting revenue growth and adjusted EBITDA growth forecasts.
Positive Outlook
- Maintaining target of 12 new unit openings for fiscal 2025.
- Same-restaurant sales growth expected to be between 1% and 3%.
- Restaurant-level adjusted EBITDA margin projected to remain strong at 22.5% to 23%.
- Plans to continue expanding in Texas and enter Atlanta in the second half of 2025.
- Introduction of new restaurant formats, including an in-line, walk-up restaurant and more efficient RoTF 1.0 prototypes.
Challenges Ahead
- Updated revenue growth target lowered to 5% to 7% from 10% to 12%.
- Adjusted EBITDA growth target revised to flat to low single-digits from 5% to 8%.
- Commodity inflation expected to be 3% to 5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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