PTLO

Portillo’s navigated a mixed second quarter marked by ongoing operational changes and the absence of prior-year promotional activities. Management emphasized that the decision not to repeat aggressive discounts and the discontinuation of its breakfast initiative created headwinds for same-store sales, but underlying brand strength and new restaurant openings drove overall revenue growth. CEO Brett Patterson attributed much of the transaction softness to these deliberate strategic choices, highlighting that “the actions we took across our cost structure, development model, and operating approach are connected by a common objective, building a more focused and scalable platform for the future.” Is now the time to buy PTLO? Find out in our full research report (it’s free). Revenue: $199 million vs analyst estimates of $199.9 million (5.6% year-on-year growth, in line) Adjusted EBITDA: $29.82 million vs analyst estimates of $27.05 million (15% margin, 10.2% beat) Operating Margin: 6.9%, down from 9.3% in the same quarter last year Locations: 109 at quarter end, up from 94 in the same quarter last year Same-Store Sales fell 1.2% year on year (0.7% in the same quarter last year) Market Capitalization: $327.1 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Margaret-May Binshtok (Wolfe Research) asked about findings from recent brand research and overall observations on the business. CEO Brett Patterson responded that new studies clarified growth opportunities and brand positioning, noting “very strong clarity now around the brand.” Sara Senatore (Bank of America) inquired about the drivers of lower restaurant-level margin guidance. Patterson cited underperformance at non-comparable restaurants and increased commodity inflation, while CFO Pamela Smith expects commodity pressures to moderate in the second half. Gregory Francfort (Guggenheim) questioned the impact of beef costs and non-promotional transaction trends. Smith highlighted that 85% of beef is hedged for the remainder of the year, and Patterson attributed traffic declines to discontinued promotions and cannibalization from new locations. Dennis Geiger (UBS) asked about beverage innovation and menu expansion. Patterson discussed the strategic addition of an executive chef and ongoing tests of new beverages, saying customers can expect continued innovation in this area. John-Paul Wollam (ROTH Capital Partners) focused on unit economics in non-Chicago markets and real estate pipeline adjustments. Patterson acknowledged past overexpansion in Texas and Arizona, and described a shift to a more rigorous, data-driven site selection process going forward. In the coming quarters, the StockStory team will closely watch (1) the early impact of cost-saving and supply chain initiatives on operating margins, (2) the effectiveness of the new site selection model in improving unit economics for new openings, and (3) the response to ongoing menu innovation and targeted marketing efforts. Progress on the rollout of the redesigned restaurant prototype and any shifts in consumer trends will also be important indicators for the company’s trajectory. Portillo's currently trades at $4.48, down from $4.67 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management implemented a strategic reset centered on three pillars: operational excellence, integrated marketing, and disciplined development to improve unit economics. Second quarter performance was significantly impacted by three factors that created a 250-basis-point headwind: the decision to lap prior-year deep discounts like the buy-one-get-one beef promotion, the discontinuation of the breakfast pilot, and cannibalization from new restaurant openings. A corporate reduction in force and G&A restructuring were executed to align resources more directly with restaurant operators and guest priorities rather than just scaling headcount. The company identified that rapid expansion in Texas and Houston led to significant cannibalization and prohibitive build costs that did not model appropriately for expected returns. Brand research confirmed exceptional affinity and net promoter scores, suggesting the brand's portability remains strong despite recent real estate selection challenges in new markets. Management is shifting focus toward profitable transactions and avoiding aggressive low-margin discounting to protect long-term brand value and margin integrity. The addition of an executive chef is intended to drive menu innovation and culinary consistency, specifically targeting quality and abundance as core brand strengths. The company expects annualized run-rate savings of $10 million to $15 million derived from G&A reductions, supply chain efficiencies, and indirect spending optimization. Development plans for 2027 have been moderated to 4-6 units to ensure capital discipline and better site selection using a new, more rigorous forecasting model. A new restaurant prototype is being designed for a 2028 launch, focusing on a smaller footprint, lower build costs, and kitchen equipment enhancements to improve cash-on-cash returns. Adjusted EBITDA guidance for the year was revised to $92 million to $96 million to reflect realistic performance expectations for non-comp restaurants and a strategy of underpricing inflation. Management anticipates continued traffic headwinds of more than 200 basis points in the back half of the year as the company laps previous discounts. as they continue to lap significant prior-year promotional activities. The company recorded $900,000 in 'dead-site' costs during the quarter, reflecting a more disciplined approach to abandoning suboptimal real estate projects. Commodity inflation reached 7% in Q2, primarily driven by beef and produce, though management expects this to moderate in the second half of the year. A new airport location at DFW serves as a test case for a 25% smaller kitchen footprint and new equipment aimed at driving back-of-house productivity. Management acknowledged that building 12 restaurants in Dallas over 3.5 years was too aggressive, leading to the current assessment of the real estate portfolio. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Research confirmed clear target customer segments and validated that Portillo's brand positioning is highly differentiated and travels well outside of Chicago. The company identified 'quality and abundance' as the primary drivers of menu satisfaction, which will guide future innovation under the new executive chef. The adjustment was primarily driven by a reset of expectations for non-comp restaurants in Texas and Arizona that are currently underperforming original models. Higher-than-expected commodity inflation in Q2 also contributed, though management noted they are 85% hedged on beef for the remainder of the year. Management admitted that previous site selection models failed to account for the long distances guests travel, leading to significant overlap between new units. Future growth will utilize a more sophisticated forecasting model to avoid the 'prohibitive' build costs and rapid-fire clustering seen in the Houston and Dallas markets. The company is leaning into beverage innovation, such as the Doctor Pepper shake, to capitalize on high-margin trends and strong brand equity in the shake category. Further innovation in the beverage platform is expected to target specific customer cohorts identified in recent segmentation studies.

Interested in Portillo's Inc.? Here are five stocks we like better. Second-quarter revenue rose 5.6% to $199 million on new restaurant openings, but same-restaurant sales declined 1.2% as transactions fell 3.4% amid lapping promotions, a breakfast pilot and cannibalization. Portillo’s cut its full-year adjusted EBITDA outlook to $92 million-$96 million, citing weaker performance at newer Texas and Arizona locations, food-cost inflation and lower restaurant-level margins. The company is pursuing a strategic reset, including headquarters reductions, supply-chain efficiencies and a redesigned, smaller restaurant prototype expected in 2028, with projected annualized savings of $10 million-$15 million. 2 fast-casual restaurants to grab before they get taken out Portillo's (NASDAQ:PTLO) reported second-quarter revenue growth of 5.6% to $199 million, supported by new restaurant openings, while same-restaurant sales declined 1.2% amid comparisons with prior-year promotions, a breakfast pilot and cannibalization from newer locations. President and Chief Executive Officer Brett Patterson said the company has undertaken a broader strategic reset centered on operational excellence, integrated marketing and disciplined development. The company is seeking to improve restaurant-level performance, sharpen its marketing efforts and build a more capital-efficient development model. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Quarter two demonstrated the strength and resilience of the Portillo's brand,” Patterson said, noting that the company chose not to repeat certain significant promotional and one-time activities from the prior year. Same-restaurant sales fell 1.2% during the quarter, as a 3.4% decline in transactions was partly offset by a 2.2% increase in average check. Menu pricing increased about 2.6%, while product mix reduced average check by 0.4%, according to Interim Chief Financial Officer Pamela Smith. → 3 Drone Stocks That Should Soar After the Summer Slump Management said promotions, the prior-year breakfast initiative and restaurant cannibalization combined to create approximately 250 basis points of traffic headwinds in the quarter. The company did not repeat last year’s buy-one-get-one-free beef promotion and said it intends to avoid aggressive, low-margin discounting as it laps additional prior-year promotions. Smith said same-restaurant sales were running slightly positive entering the third quarter, though Portillo's expects continued promotional and cannibalization headwinds in August and September. The company implemented a 2% price increase across selected menu categories in mid-April and expects roughly a 2% menu-pricing benefit in the third quarter absent further pricing actions. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Portillo's now expects full-year adjusted EBITDA of $92 million to $96 million. Patterson said the revised outlook reflects a reassessment of newer, non-comparable restaurants based on recent performance, particularly in Texas and Arizona, as well as the company’s decision to protect customer value by pricing below inflation and avoiding deep discounts. “We just had to reset and adjust the non-comp locations based on what was in the original guidance versus where we see them today from a performance standpoint,” Patterson said. Restaurant-level adjusted EBITDA declined $1.2 million to $43.2 million, while restaurant-level adjusted EBITDA margin fell about 190 basis points to 21.7%. Smith attributed the decline primarily to food-cost inflation that was not fully offset by pricing and underperformance at non-comparable restaurants. Food, beverage and packaging costs rose to 35% of revenue from 33.8% a year earlier. The increase reflected new restaurant openings and 7% commodity inflation led by beef and produce. Smith said the company still expects commodity inflation to be in the mid-single digits for the full year. The company said it is 85% hedged on beef costs for the third and fourth quarters, while approximately 63% of the rest of its commodity basket is locked. Management said it is comfortable with expected costs for the remainder of the year. Labor expense was flat year over year at 25.7% of revenue, as wage inflation and the impact of newer restaurant openings were offset by labor efficiencies. Adjusted EBITDA was $29.8 million, or 15% of revenue, compared with $30.1 million, or 16% of revenue, in the prior-year quarter. Following the quarter, Portillo's reduced its corporate headquarters workforce, with no direct impact on restaurant-level team members. Patterson said the action was designed primarily to simplify decision-making and better align resources with restaurant and guest priorities. The company also launched initiatives targeting supply-chain and indirect-spending efficiencies and restructured its development function. Collectively, the actions are expected to generate annualized run-rate savings of approximately $10 million to $15 million. Patterson said some benefits are expected to be recognized in the third quarter, with a fuller annualized run rate expected by the fourth quarter. Portillo's is redesigning its restaurant prototype for 2028 and beyond, with goals of reducing footprint and build costs while improving returns. Its first airport location, at Dallas Fort Worth International Airport, is less than 3,100 square feet and has a kitchen 25% smaller than previous prototypes. Management said equipment and layout enhancements at the location may inform future operating-efficiency efforts. Patterson said the company’s updated real estate forecasting model has reinforced that site selection and development pacing were important contributors to weaker performance in some newer markets. He said Portillo's opened 12 Dallas locations in about three and a half years and six Houston locations in 16 months, a pace the company would not repeat based on current findings. Portillo's expects to open one additional restaurant in the fourth quarter, a downtown Chicago in-line location. The opening would bring total 2026 openings to eight, in line with prior guidance. The company continues to finalize its 2027 pipeline, previously discussed as four to six openings. Management expects to launch its new prototype in the first quarter of 2028. Management said research on customer segmentation, brand positioning and menu satisfaction found strong brand affinity in Chicago and beyond. Patterson said the company sees opportunities to improve customer activation in newer markets, where brand loyalty is strong after consumers try the concept. Portillo's added Christopher Hansen as executive chef to support menu innovation, culinary quality and consistency. Patterson said the company sees beverage innovation as an opportunity, citing the recently introduced Dr Pepper shake and the brand’s existing equity in shakes and Cake Shakes. The company’s Perks loyalty program reached its highest sales penetration to date at 15.1% during the quarter. Smith said the platform will continue to be used for offers intended to reward loyal customers. Year-to-date cash provided by operating activities increased 22.4% to $35.1 million. Portillo's ended the quarter with $21.3 million in cash, $97 million outstanding on its revolver, total net debt of $338 million and approximately $49 million of remaining revolver capacity. Smith said the company plans to use cash generated through its shift toward free-cash-flow positivity to reduce debt and revolver borrowings. Portillo's also announced that Kevin Kalicak will join the company as chief financial officer. Patterson thanked Smith for serving as interim CFO during the transition. Portillo’s, Inc operates a fast‐casual restaurant chain best known for its Chicago‐style menu, featuring Italian beef sandwiches, Chicago‐style hot dogs, char‐grilled burgers, salads, crinkle‐cut fries and hand‐spun milkshakes. In addition to its signature sandwiches and dogs, the company offers a selection of desserts—including its famous chocolate cake and frozen custard—as well as catering services designed to bring its Midwestern flavors to corporate and social events. The company was founded in 1963 by Dick Portillo, who opened the first Portillo’s in Villa Park, Illinois. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Portillo's Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Casual restaurant chain Portillo’s (NASDAQ:PTLO) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.6% year on year to $199 million. Its GAAP profit of $0.09 per share was in line with analysts’ consensus estimates. Is now the time to buy Portillo's? Find out in our full research report. Revenue: $199 million vs analyst estimates of $199.9 million (5.6% year-on-year growth, in line) EPS (GAAP): $0.09 vs analyst estimates of $0.08 (in line) Adjusted EBITDA: $29.82 million vs analyst estimates of $27.05 million (15% margin, 10.2% beat) Operating Margin: 6.9%, down from 9.3% in the same quarter last year Free Cash Flow Margin: 3%, similar to the same quarter last year Locations: 109 at quarter end, up from 94 in the same quarter last year Same-Store Sales fell 1.2% year on year (0.7% in the same quarter last year) Market Capitalization: $327.9 million “Q2 was highlighted by resilient underlying sales performance despite difficult promotional comparisons, as well as taking decisive actions to simplify the business to better support our priority of running great restaurants,” said Brett Patterson, Portillo's Chief Executive Officer. Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ:PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes. A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $748.8 million in revenue over the past 12 months, Portillo's is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the bright side, it can grow faster because it has more white space to build new restaurants. As you can see below, Portillo’s 7.3% annualized revenue growth over the last seven years was decent as it opened new restaurants and expanded its reach. This quarter, Portillo's grew its revenue by 5.6% year on year, and its $199 million of revenue was in line with Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 6.3% over the next 12 months, similar to its seven-year rate. This projection doesn’t excite us and implies its menu offerings will face some demand challenges. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow. Portillo's sported 109 locations in the latest quarter. Over the last two years, it has opened new restaurants at a rapid clip by averaging 11.7% annual growth, among the fastest in the restaurant sector. This gives it a chance to scale into a mid-sized business over time. When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations. The change in a company’s restaurant base only tells one side of the story. The other is the performance of its existing locations, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales provides a deeper understanding of this issue because it measures organic growth at restaurants open for at least a year. Portillo’s demand within its existing dining locations has barely increased over the last two years as its same-store sales were flat. Portillo's should consider improving its foot traffic and efficiency before expanding its restaurant base. In the latest quarter, Portillo’s same-store sales fell by 1.2% year on year. This performance was more or less in line with its historical levels. We were impressed by how significantly Portillo's blew past analysts’ EBITDA expectations this quarter. We were also glad its EPS was in line with Wall Street’s estimates. On the other hand, its revenue was in line. Overall, this print had some key positives. The stock traded up 3.7% to $4.85 immediately after reporting. Sure, Portillo's had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

Portillo's Inc. (PTLO) came out with quarterly earnings of $0.09 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced a loss of $0.01, delivering a surprise of -200%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Portillo's Inc., which belongs to the Zacks Retail - Restaurants industry, posted revenues of $198.95 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.93%. This compares to year-ago revenues of $188.46 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Portillo's Inc. shares have lost about 0.2% since the beginning of the year versus the S&P 500's gain of 13%. While Portillo's Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Portillo's Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $197.74 million in revenues for the coming quarter and $0.23 on $781.68 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Wendy's (WEN), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This hamburger chain is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -44.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Wendy's' revenues are expected to be $564.56 million, up 0.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Portillo's Inc. (PTLO) : Free Stock Analysis Report The Wendy's Company (WEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OAK BROOK, Ill., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO), the one-of-a-kind restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the second quarter ended June 28, 2026. Second Quarter 2026 Highlights (vs. Second Quarter 2025): Total revenue of $199.0 million, an increase of 5.6% or $10.5 million Same-restaurant sales decrease of 1.2% Net income of $7.2 million, a decrease of $2.9 million; Adjusted EBITDA(1) of $29.8 million, a decrease of $0.2 million First-ever airport location opened at Dallas-Fort Worth International (DFW) utilizing smaller kitchen size and equipment enhancements Expanding home market with first inline restaurant in downtown Chicago later this year, and first location in Wrigleyville in 2027 (1) Adjusted EBITDA is a non-GAAP measure. Please see definition and the reconciliation of this non-GAAP measure accompanying this release. “Q2 was highlighted by resilient underlying sales performance despite difficult promotional comparisons, as well as taking decisive actions to simplify the business to better support our priority of running great restaurants,” said Brett Patterson, Portillo's Chief Executive Officer. “In parallel, we finalized our recent brand and consumer research which is helping to shape our long-term strategy focused on sustainable, profitable growth. We look forward to sharing that roadmap soon.” Second Quarter 2026 Financial and Operating Results Revenues for the quarter ended June 28, 2026 were $199.0 million compared to $188.5 million for the quarter ended June 29, 2025, an increase of $10.5 million or 5.6%. The increase in revenues was primarily attributed to the opening of eight restaurants in fiscal 2025 and seven restaurants during the two quarters ended June 28, 2026, partially offset by a decrease in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined below) contributed $13.3 million of the total year-over-year increase. Same-restaurant sales decreased 1.2%, or $2.2 million in the quarter. The same-restaurant sales decline was attributable to a decrease in transactions of 3.4%, partially offset by an increase in average check of 2.2%. The higher average check was driven by an approximate 2.6% increase in certain menu prices, partially offset by a 0.4% decrease in product mix. To address inflationary cost pressures, we increased select menu prices by approximately 2.0% in April 2026. For the purpose of calculating same-restaurant sales for the quarter ended June 28, 2026, sales for 85 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base. Total restaurant operating expenses for the quarter ended June 28, 2026 were $155.7 million compared to $144.0 million for the quarter ended June 29, 2025, an increase of $11.7 million or 8.1%. The increase was primarily driven by the opening of eight restaurants in fiscal 2025 and seven restaurants during the two quarters ended June 28, 2026, higher commodity costs and investments in our team members. Commodity prices increased 7.0% year over year, resulting in higher food, beverage and packaging costs. Other operating expenses also increased, partially offset by lower utilities and insurance costs. General and administrative expenses for the quarter ended June 28, 2026 were $19.6 million compared to $18.8 million for the quarter ended June 29, 2025, an increase of $0.8 million or 4.1%. This increase was primarily driven by higher professional fees, including $0.9 million of dead site costs, and increased software licensing fees. These increases were partially offset by lower legal expenses. Operating income for the quarter ended June 28, 2026 was $13.8 million compared to $17.5 million for the quarter ended June 29, 2025, a decrease of $3.8 million or 21.4% as higher revenue was more than offset by the aforementioned expense factors and an increase in other loss of $1.4 million due to a legal contingency. Net income for the quarter ended June 28, 2026 was $7.2 million compared to a net income of $10.0 million for the quarter ended June 29, 2025, a decrease of $2.9 million or 28.8%. The decrease in net income was primarily due to a decrease in operating income of $3.8 million due to the aforementioned factors and a decrease in the Tax Receivable Agreement liability adjustment of $1.1 million, partially offset by a decrease in income tax expense of $1.9 million. Restaurant-Level Adjusted EBITDA* for the quarter ended June 28, 2026 was $43.2 million compared to $44.5 million for the quarter ended June 29, 2025, a decrease of $1.2 million or 2.8%. Adjusted EBITDA* for the quarter ended June 28, 2026 was $29.8 million compared to $30.1 million for the quarter ended June 29, 2025, a decrease of $0.2 million or 0.8%. *A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under “Non-GAAP Measures” in the accompanying financial data below. Development Highlights During the quarter ended June 28, 2026, we opened three restaurants for a total of 109 restaurants, as of the filing of this press release, including a restaurant owned by C&O, of which Portillo’s owns 50% of the equity. We plan to open one additional restaurant in the fourth quarter of 2026, which will be our second in-line location and will be located in Chicago, Illinois. Below are the restaurants opened thus far in fiscal 2026: Fiscal 2026 Financial Targets Based on current expectations, fiscal 2026 outlook is as follows: *We are unable to reconcile the financial target for adjusted EBITDA and restaurant-level adjusted EBITDA margin to net income/loss growth and operating income/loss margin, the respective corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure. Reduction in Corporate Headquarters/Field Workforce On July 31, 2026, subsequent to the end of the second quarter, Portillo's implemented a reduction in force affecting employees at its corporate headquarters and a limited number of field management roles. No restaurant-level team members were impacted. The action reduced the Company's corporate headquarters active workforce by approximately 18%. Revisions to the Company's Fiscal 2026 Financial Targets reflecting these actions appear in the guidance section. Brett Patterson, CEO:"While never an easy decision, it is imperative that we examine areas of the business where we can operate more efficiently and ensure our resources and future investments are directed at the right priorities. These actions, along with other efficiencies, will support our long-term growth strategy." The following definitions apply to these terms as used in this release: Change in Same-Restaurant Sales - The change in same-restaurant sales is the percentage change in year-over-year revenue for the Comparable Restaurant Base, which is defined as the number of restaurants open for at least 24 full fiscal periods. As of the quarters ended June 28, 2026 and June 29, 2025, there were 85 and 75 restaurants in our Comparable Restaurant Base, respectively. A change in same-restaurant sales is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our change in same-restaurant sales allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company’s historical and prospective operating performance. Average Unit Volume - AUV is the total revenue (excluding gift card and Portillo’s Perks™ loyalty program breakage) recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period. This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base. Adjusted EBITDA and Adjusted EBITDA Margin - Adjusted EBITDA represents net income before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income, the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.” Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin - Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenues, net. See also “Non-GAAP Financial Measures.” For more information about the Company’s Non-GAAP measures, how they are calculated and reconciled and why management believes that they are useful, see “Non-GAAP Financial Measures” below. Earnings Conference Call The Company will host a conference call to discuss its financial results for the second quarter on Wednesday, August 5, 2026, at 4:30 PM ET. The conference call can be accessed live over the phone by dialing 877-407-3982. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 844-512-2921, and using passcode #13748481. The webcast replay will be available at investors.portillos.com shortly after the call has concluded. About Portillo’s Portillo’s (NASDAQ: PTLO) is a one-of-a-kind brand that has grown from a small hot dog trailer in Chicago to more than 100 restaurants across 11 states. Known for its unique menu of craveable Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and iconic chocolate cake, Portillo’s is beloved in both its home of Chicagoland and across new and growing markets. Portillo’s operates a company-owned model of not just restaurants – but experience-focused destinations that blend dine-in, drive-thru, takeout and delivery to serve guests with the food they crave. And now, after six decades of success and counting, Portillo’s is on a mission to bring its iconic food and unforgettable dining experience to guests across the country. Guests can join Portillo’s Perks™, the brand’s loyalty program, at Portillos.com/perks to earn and redeem delicious rewards. Every visit brings fans closer to exclusive perks, badges and surprise offers. Fans can also download the Portillo’s App for iOS or Android or visit Portillo’s website to order ahead for pickup or delivery and get the best dill on these bun-believably delicious Chicago-style favorites and more. Plus, Portillo’s ships its craveworthy food to all 50 states via its website.Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business, and are based on currently available operating, financial and competitive information which are subject to various risks and uncertainties, so you should not place undue reliance on forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "commit," "estimate," "expect," "forecast," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: risks related to or arising from our organizational structure; risks of food-borne illness and food safety and other health concerns about our food; risks relating to the economy and financial markets, including in relation to trade and tax policy changes and other macroeconomic uncertainty, including, inflation, fluctuating interest rates, stock market volatility, recession concerns, and other factors; risks associated with onboarding new members of management, including the Chief Executive Officer and Chief Financial Officer and the related transition; the impact of unionization activities of our Team Members on our reputation, operations and profitability; risks associated with our reliance on certain information technology systems, and potential failures or interruptions; risks associated with data, privacy, cyber security and the use and implementation of information technology systems, including our digital ordering and payment platforms for our delivery business; risks associated with increased adoption, implementation and use of artificial intelligence technologies across our business; the impact of competition, including from our competitors in the restaurant industry or our own restaurants; the increasingly competitive labor market and our ability to attract and retain the best talent and qualified employees; the impact of federal, state or local government regulations relating to privacy, data protection, advertising and consumer protection, building and zoning requirements, labor and employment matters, costs of or ability to open new restaurants, or the sale of food and alcoholic beverages; inability to achieve our growth strategy, including as a result of, among other things, the availability of suitable new restaurant sites in existing and new markets and opening of new restaurants at the anticipated rate and on the anticipated timeline and cost structure; the impact of consumer sentiment and other economic factors on our sales; fluctuation in food and other operating costs, tariffs and import taxes, and supply shortages; and other risks identified in our filings with the Securities and Exchange Commission (the “SEC”). All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in the Company’s most recent Annual Report on Form 10-K, filed with the SEC. All of the Company’s SEC filings are available on the SEC’s website at www.sec.gov. The forward-looking statements included in this press release are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Investor Contact:Chris Brandon, Vice President of Investor [email protected] Media Contact:Sara Wirth, Director of Communications & [email protected] (a) Includes a restaurant that is owned by C&O of which Portillo’s owns 50% of the equity. AUVs for the quarters ended June 28, 2026 and June 29, 2025 represent AUVs for the twelve months ended June 28, 2026 and June 29, 2025, respectively. Total restaurants indicated are as of June 28, 2026. (b) Excludes C&O. PORTILLO’S INC.NON-GAAP FINANCIAL MEASURES To supplement the consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA Margin, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. Accordingly, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are not required by, nor presented in accordance with GAAP, but rather are supplemental measures of operating performance of our restaurants. You should be aware that these measures are not indicative of overall results for the Company and that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. These measures are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. These measures are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate, but also have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP. Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA represents net income before depreciation and amortization, interest expense, interest income, and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income, the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. We use Adjusted EBITDA and Adjusted EBITDA Margin (i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management’s performance when determining incentive compensation. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance. We are unable to reconcile the long-term outlook for Adjusted EBITDA to net income, the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure. Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include cost of goods sold (excluding depreciation and amortization), labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenue. We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate. See below for a reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA and Adjusted EBITDA Margin (in thousands): (1) Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term. (2) Represents non-capitalized third party consulting and software licensing costs incurred in connection with the implementation of a new HCM system which are included within general and administrative expenses.(3) Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.(4) Represents loss on disposal of property and equipment included within other loss (income), net.(5) Represents certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees included within general and administrative expenses.(6) Represents a legal contingency recorded in connection with the Maverick arbitration, included within other loss (income), net.(7) Represents costs related to the Company's strategic reset of its development and growth plans and CEO transition and replacement costs. These costs are included within general and administrative expenses.(8) Represents fees incurred for discrete, project-based strategic initiatives that are not part of the Company's ongoing operations and are included within general and administrative expense. These costs consist primarily of third-party consulting fees related to a brand study and a spend optimization study. Given the magnitude and scope of these initiatives and that they are not expected to recur in the foreseeable future, the Company considers the associated consulting fees not reflective of the ongoing costs to operate its business.(9) Represents remeasurement of the Tax Receivable Agreement liability.(10) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net. See below for a reconciliation of operating income, the most directly comparable GAAP measure, to Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin (in thousands): (1) Restaurant-Level Adjusted EBITDA Margin is defined as Restaurant-Level Adjusted EBITDA divided by Revenues, net.

The market expects Portillo's Inc. (PTLO) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $200.82 million, up 6.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Portillo's Inc., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.85%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Portillo's Inc. will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Portillo's Inc. would post earnings of $0.01 per share when it actually produced a loss of -$0.01, delivering a surprise of -200.00%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Portillo's Inc. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Portillo's Inc. (PTLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research