CHICAGO - Portillo's Inc. (NASDAQ:PTLO) saw its shares gain 2.4% after the fast-casual restaurant chain reported second quarter results that showed solid revenue growth despite a slight earnings miss.
The company known for its Chicago-style hot dogs and Italian beef sandwiches posted revenue of $181.9 million for the quarter ended June 30, 2024, up 7.5% from $169.2 million in the same period last year. However, this fell short of analyst estimates of $185.08 million.
Adjusted earnings per share came in at $0.10, missing expectations by $0.01.
Same-restaurant sales decreased 0.6% YoY, as a 2.3% decline in transactions was partially offset by a 1.7% increase in average check size. The company attributed the higher average check to menu price increases of approximately 4.3%, which helped counter inflationary pressures.
"We delivered sequential improvement in both revenue and margin this quarter as we continued to prioritize sales and transaction growth," said Michael Osanloo, President and CEO of Portillo's.
The company opened two new restaurants during the quarter, bringing its total count to 86 locations. Management now expects to open at least 10 new restaurants in fiscal 2024, up from its previous target of 9+.
For the full year, Portillo's updated its guidance to expect flat to slightly positive same-restaurant sales, compared to its prior outlook for low-single digit growth. The company maintained its restaurant-level adjusted EBITDA margin forecast of 23-24%.
While facing some near-term headwinds, Portillo's continues to focus on expansion and operational improvements to drive long-term growth.
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