Portillo's (PTLO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 4.5% to $710.6 million, with Q4 revenue at $184.6 million, down 1.7% due to the absence of a 53rd week; excluding this, Q4 revenue grew 6.1%.

• Net income for fiscal 2024 was $35.1 million, up $10.3 million from 2023; Q4 net income was $12.4 million.

• Adjusted EBITDA for fiscal 2024 was $104.8 million (14.7% margin); Restaurant-Level Adjusted EBITDA was $168.1 million (23.7% margin).

• Opened 10 new restaurants in 2024, including "Restaurant of the Future" prototypes; total locations reached 94.

• Growth strategies include kiosk expansion, new loyalty program, advertising outside core markets, and operational improvements.

Financial highlights

• Same-restaurant sales declined 0.6% for fiscal 2024 and grew 0.4% in Q4; Q4 comps driven by average check growth.

• Adjusted EBITDA for Q4 was $25.2 million (13.7% margin), down 3.6% year-over-year, but up 6.3% excluding the extra week.

• Operating income for 2024 was $58.0 million (8.2% margin); Q4 operating income was $13.8 million.

• Cash from operations increased 38.5% year-over-year to $98 million; ended the year with $22.9 million in cash.

• Average unit volume (AUV) for 2024 was $8.7 million.

Outlook and guidance

• 2025 targets: 12 new units, revenue growth of 11–12%, same-restaurant sales flat to +2%.

• Restaurant-Level Adjusted EBITDA margin guidance for 2025 is 22.5–23%; adjusted EBITDA growth targeted at 6–8%.

• Capital expenditures projected at $97–$100 million; pre-opening expenses at $11–$12 million.

• Commodity inflation estimated at 3–5% and labor inflation at 3–4% in 2025.

• Long-term: annual unit growth 12–15%, mid-teens revenue growth, low-teens adjusted EBITDA growth.