NASDAQ$PTLO

Portillo's Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Portillo's reported strong Q2 2023 results, highlighting brand durability and solid performance in core operations.

Portillo's Inc. reported a 12.3% increase in total revenue to $169.2 million, with same-restaurant sales increasing by 5.9%. Operating income remained relatively stable at $17.4 million, while net income decreased slightly to $9.9 million. The company opened one new restaurant during the quarter, bringing the total to 76 restaurants.

  • Total revenue increased by 12.3% to $169.2 million compared to Q2 2022.
  • Same-restaurant sales grew by 5.9%, driven by a 7.1% increase in average check, offset by a 1.2% decrease in transactions.
  • Operating income remained consistent at $17.4 million, while net income decreased to $9.9 million.
  • Restaurant-Level Adjusted EBITDA increased to $42.7 million, and Adjusted EBITDA increased to $29.2 million.

Headline financials

Total Revenue

$169M

Previous: $151M+12.3%
EPS (adj)

$0.12

Previous: $0.13-7.7%
Same-restaurant sales change

5.9%

Previous: 1.9%+210.5%
Total restaurants

76

Previous: 71+7.0%
Capital Expenditures

-$37.4M

Previous: -$13.9M-168.0%
Free Cash Flow

-$30.6M

Previous: -$8.83M-246.3%
Net Income

$6.79M

Previous: $5.11M+32.8%
Operating Income

$17.4M

Previous: $17.4M-0.3%
Gross Profit

-$99.4M

Previous: -$51.8M-92.0%
Cash & Equivalents

$22.5M

Previous: $49.7M-54.8%
Total Assets

$1.33B

Previous: $1.01B+32.1%
Stock-Based Comp

$4.18M

Previous: $3.86M+8.3%

Revenue & EPS history

Portillo's · Revenue · Quarterly

$169M

Q2 2023+12.3%vs Q2 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

The company plans to open eight more new restaurants in the third and fourth quarters of 2023 and expects overall commodity inflation to ease over the course of the year, estimating mid-single-digit commodity inflation for the full fiscal year. The company also anticipates mid-single-digit labor inflation for the full fiscal year.

Tailwinds

  • Plans to open eight more new restaurants in Q3 and Q4 2023.
  • Expects commodity inflation to ease over the year.
  • Strategic pricing actions, elevated guest experiences, and operational efficiencies.
  • Ongoing efforts to improve Restaurant-Level Adjusted EBITDA margins for fiscal 2023.
  • Will continue to monitor the environment and make additional pricing decisions, if necessary.

Headwinds

  • Potential risks related to food-borne illness and food safety.
  • Impact of unionization activities on operations and profitability.
  • Impact of recent bank failures on the marketplace, including access to credit.
  • Privacy and cyber security risks related to digital ordering and payment platforms.
  • Increasingly competitive labor market and ability to attract and retain qualified employees.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.6%

Avg return

Earnings day

-6.0%

Avg return

5 days after

-11.4%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+11.8%

Q4 2023

Best reaction

-17.5%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-16.5%-25.0%-33.7%
Q4 2025-7.1%-7.8%-7.1%
Q3 2025-7.4%-5.7%-5.5%
Q1 2025+1.0%+8.1%+8.1%
Q4 2024+9.8%+2.9%-8.3%
Q3 2024-3.7%-8.3%-23.4%
Q2 2024+11.5%+20.6%+34.6%
Q1 2024-14.7%-16.6%-16.9%
Q4 2023+11.8%+3.7%+3.1%
Q3 2023+9.0%+2.5%+5.2%
Q2 2023-13.1%-14.5%-18.3%
Q1 2023-11.4%-10.8%-10.9%
Q4 2022-0.5%-2.1%-4.4%
Q3 2022+5.0%+7.9%-4.0%
Q2 2022+10.0%+2.5%-9.6%
Q2 2021+10.0%+2.5%-9.6%
Q1 2021+7.7%-4.0%-8.0%
Q1 2022+7.7%-4.0%-8.0%
Q4 2021-7.8%-5.2%-10.4%
Q4 2019-7.8%-5.2%-10.4%
Q3 2020-17.5%-26.4%-41.5%
Q4 2020-17.5%-26.4%-41.5%
Q3 2021-17.5%-26.4%-41.5%
Q2 2020
Q1 2020

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