Overview

• U.S. restaurant chain's Q1 revenue rose 3.5% but slightly missed analyst expectations

• Same-restaurant sales fell 0.1% as lower average check offset higher transactions

• Company posted $0.5 mln net loss as expenses rose; CFO to depart

Outlook

• Company targets 8 new unit openings in fiscal 2026

• Company expects commodity inflation in mid single digits and labor inflation of 3% to 3.5%

• Portillo's sees 2026 restaurant-level adjusted EBITDA margin of 20.5% to 21%

• Company expects 2026 adjusted EBITDA to be flat versus 2025

Result Drivers

• NEW RESTAURANT OPENINGS - Revenue growth was primarily driven by the opening of eight restaurants in fiscal 2025 and four more in Q1 2026, partially offset by a decrease in same-restaurant sales

• LOWER AVERAGE CHECK - Same-restaurant sales declined 0.1% as a 0.9% decrease in average check, driven by lower product mix and increased promotional offers, offset a rise in transactions

• HIGHER OPERATING COSTS - Operating expenses rose due to commodity inflation, labor investments, and costs tied to new restaurant openings

Company press release: ID:nGNXbzXylQ

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Miss*	$182.60 mln	$183.32 mln (11 Analysts)
Q1 Net Income		-$509,000
Q1 Rest. Level Adj. EBITDA		$34.80 mln
Q1 Operating Expenses		$147.80 mln
Q1 Operating Income		$4.50 mln
Q1 Same-restaurant sales Growth		-0.10%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• Wall Street's median 12-month price target for Portillos Inc is $6.50, about 13.6% above its May 4 closing price of $5.72

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 27 three months ago

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