Portillo’s Inc. (PTLO) reported fourth‑quarter 2025 results on February 24, 2026, with revenue of $185.7 million, a 0.6% increase from the $184.6 million reported a year earlier. GAAP earnings per share rose to $0.08, beating the consensus estimate of $0.05 by $0.03 and a 60% surprise. Net income for the quarter was $6.3 million, down from $12.5 million a year ago, reflecting the impact of higher commodity and labor costs that offset the modest revenue growth.
The full‑year 2025 figures show total revenue of $732.1 million, up 3.0% from $711.0 million in 2024, and net income of $21.1 million, a decline of $14.0 million versus the prior year. Same‑restaurant sales fell 3.3% in Q4, a reversal of the 0.4% gain seen in Q4 2024, underscoring the challenge of sustaining traffic in core locations while new store openings drive top‑line growth.
Margin pressure is evident: restaurant‑level adjusted EBITDA margin contracted to 21.8% in Q4 from 24.5% a year earlier, driven by mid‑single‑digit commodity inflation, rising labor costs, and the cost of expanding into Texas, which the company identified as a headwind. The company’s cost‑control initiatives helped keep GAAP EPS above expectations despite these headwinds.
For fiscal 2026, Portillo’s guidance includes opening eight new restaurants, maintaining restaurant‑level adjusted EBITDA margins of 20.5% to 21%, and keeping adjusted EBITDA flat relative to 2025. General and administrative expenses are projected at $80–$82 million and capital expenditures at $55–$60 million, indicating a cautious investment stance while the company focuses on unit economics.
Management highlighted a strategic reset, noting that the new CEO, Brett Patterson, will steer the company toward stronger unit performance. The company also emphasized early positive results from its Atlanta market entry and the continued impact of the Texas expansion, which has added cost pressure but also new revenue opportunities. The focus on operational fundamentals and dynamic marketing tactics is intended to reverse the decline in same‑restaurant sales and stabilize margins.
The earnings beat and guidance suggest that Portillo’s is executing on its cost‑control plan while navigating a mixed operating environment. Revenue growth is largely driven by new store openings, but same‑restaurant sales decline and margin compression signal ongoing challenges. The company’s forward‑looking targets reflect confidence in maintaining profitability through disciplined spending and a focus on unit economics, while acknowledging the need to address the headwinds from commodity inflation and the Texas expansion.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.