PTLO · Portillo's Inc.

Portillo's Q1 2026 results showed revenue growth of 3.5% to $182.6 million, driven by new restaurant openings including eight from fiscal 2025 and four during the quarter, contributing $7.7 million incrementally. This was nearly offset by a 0.1% same-restaurant sales decline across 83 comparable units, stemming from a 0.9% drop in average check due to unfavorable product mix and promotions, despite a slight 0.8% transaction increase. Restaurant operating expenses rose 5.7% to $147.8 million from new units, 1.8% commodity inflation, labor investments, and higher other costs. G&A expenses increased 7.7% to $20.4 million due to equity compensation, advertising, and professional fees including $0.5 million dead site costs. These pressures led to operating income dropping 56.7% to $4.5 million and a net loss of $0.5 million versus prior-year income, with Adjusted EBITDA declining 13.0% to $18.5 million. CEO Brett Patterson highlighted progress on growth priorities: operations, marketing, and disciplined development. The company opened four Texas locations in Q1 and one post-quarter, reaching 107 restaurants, planning three more in 2026 including a DFW airport site. FY2026 guidance anticipates 8 new units, mid-single-digit commodity inflation, 3-3.5% labor inflation, flat Adjusted EBITDA, and 20.5-21% restaurant-level Adjusted EBITDA margin, signaling stable profitability amid expansion. Concurrently, CFO Michelle Hook's departure on May 5 after leading since 2020 and the 2021 IPO introduces leadership transition risk, with the Board engaging a search firm for a strategic successor to support growth.