Portillo's (PTLO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 6.9% year-over-year to $178.3 million, driven by new restaurant openings, while same-restaurant sales declined 0.9% due to lower transactions partially offset by higher average check.

• Net income was $8.8 million for Q3, up from $6.5 million in the prior year; operating income reached $16.0 million.

• Restaurant-level Adjusted EBITDA for Q3 was $41.9 million (23.5% margin), and Adjusted EBITDA was $27.9 million (15.7% margin).

• Strategic initiatives included a full kiosk rollout, expansion in Texas and the Sunbelt, new restaurant formats, and operational investments.

• Management emphasized margin protection, cash flow generation, and long-term growth pillars amid industry discounting and macroeconomic headwinds.

Financial highlights

• Q3 revenue was $178.3 million, up $11.4 million (6.9%) year-over-year; year-to-date revenue reached $525.9 million.

• Q3 net income: $8.8 million (4.9% margin); year-to-date net income: $22.6 million (4.3% margin).

• Q3 operating income: $16.0 million (9.0% margin); year-to-date operating income: $44.2 million (8.4% margin).

• Adjusted EBITDA for Q3: $27.9 million (15.7% margin); year-to-date: $79.6 million (15.1% margin).

• Restaurant-level Adjusted EBITDA for Q3: $41.9 million (23.5% margin); year-to-date: $122.9 million (23.4% margin).

Outlook and guidance

• Full-year 2024 guidance: negative comparable sales of ~1.0%, restaurant-level adjusted EBITDA margin 23%-24%, and 10 new units.

• G&A expenses projected at $78–$80 million; capital expenditures targeted at $85–$88 million.

• Labor inflation expected at approximately 3.0%; commodity inflation in the mid-single digits.

• Long-term targets: unit growth 12%-15%, low single-digit same-restaurant sales growth, mid-teens revenue growth, low-teens adjusted EBITDA growth.

• Five additional restaurant openings planned for December 2024.