Portillo's Q4 2023 Earnings Report
Key Takeaways
Portillo's Inc. reported a 24.5% increase in total revenue for the fourth quarter of 2023, reaching $187.9 million. Same-restaurant sales increased by 4.4%. Operating income increased to $14.5 million, and net income rose to $9.6 million. The company opened six new restaurants during the quarter, bringing the total restaurant count to 84.
Total revenue increased by 24.5% to $187.9 million compared to Q4 2022.
Same-restaurant sales increased by 4.4%.
Operating income increased to $14.5 million, up from $6.4 million in the prior year.
Net income increased to $9.6 million, compared to $2.7 million in Q4 2022.
Portillo's
Portillo's
Forward Guidance
For fiscal 2024, the Company is anticipating at least nine new restaurant openings, commodity inflation ranging from 4% to 6%, general and administrative expenses ranging from $85 million - $87 million, pre-opening expenses between $8.0 million - $9.0 million and capital expenditures between $90 million - $93 million.
Positive Outlook
- At least nine new restaurant openings are planned for fiscal 2024.
- Focus on leveraging the unit economic model in markets outside Chicagoland.
- Short-term growth strategy emphasizes the Sunbelt region, including Arizona, Texas, and Florida.
- Continue filling in Chicagoland and adjacent markets as opportunities arise.
- Expects commodity inflation to stay consistent with recent trends.
Challenges Ahead
- Anticipates commodity inflation ranging from 4% to 6%.
- Expects general and administrative expenses ranging from $85 million - $87 million.
- Pre-opening expenses are projected to be between $8.0 million - $9.0 million.
- Capital expenditures are estimated to be between $90 million - $93 million.
- Anticipate additional wage investments and are currently estimating mid-single digit wage inflation.