Tue, May 6, 12:07 PM (13 days ago)
### Portillo's Inc. (PTLO) Q1 2025 Financial Summary **Overview:** Portillo's Inc. (PTLO) reported its Q1 2025 financial results, highlighting key performance metrics, revenue growth, and operational trends. The company operates restaurants across 10 states, serving iconic Chicago-style food. **Financial Performance:** - **Revenue:** Total revenue increased by 6.4% to $176.4 million, driven by new restaurant openings and a 1.8% increase in same-restaurant sales. - **Operating Income:** Increased by $0.3 million to $10.4 million. - **Net Income:** Decreased by $1.4 million to $4.0 million. - **Restaurant-Level Adjusted EBITDA:** Increased by $0.3 million to $36.7 million. - **Adjusted EBITDA:** Decreased by $0.6 million to $21.2 million. **Profit Margins:** - **Operating Margin:** 5.9% (down from 6.1%). - **Net Margin:** 2.3% (down from 3.2%). **Cash Flow:** - **Operating Cash Flow:** Increased by $0.4 million to $9.5 million. - **Investing Cash Flow:** Increased by $2.1 million to $19.0 million. - **Financing Cash Flow:** Decreased by $11.0 million to a use of $0.4 million. **Earnings Changes:** - **Earnings per Share (EPS):** Basic and diluted EPS remained at $0.05. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by new restaurant openings and a 1.8% increase in same-restaurant sales. - **Cost Management:** Commodity inflation was 3.4%, and labor costs increased by 0.5% as a percentage of revenue. - **Menu Prices:** Increased by approximately 1.5% in January 2025 and 1.0% in April 2025. - **Development:** No new restaurants opened in Q1 2025, but 12 new restaurants are planned for fiscal 2025. **Trends and Uncertainties:** - **Economic Factors:** Inflation, fluctuating interest rates, and macroeconomic uncertainty. - **Operational Strategies:** Focus on drive-thru optimization, loyalty programs, and digital engagement. - **Future Operations:** Plans to enter new markets, including Atlanta and San Antonio, and test breakfast offerings. **Future Operations Impact:** - **Growth Strategy:** Focus on leveraging proven unit economic models in new markets. - **Financial Health:** Maintains a strong liquidity position with $12.9 million in cash and $71.7 million available under the 2025 Revolver Facility. **Conclusion:** Portillo's Inc. demonstrated solid revenue growth and operational efficiency in Q1 2025, despite challenges in net income and adjusted EBITDA. The company's strategic initiatives and expansion plans position it for continued growth and market penetration.