10-Q · May 5, 2026
Portillo's reported Q1 2026 results with total revenue of $182.6 million, a 3.5% increase year-over-year but falling short of the $183.4 million consensus estimate. The company posted a net loss of $0.5 million (EPS of…
Earnings analysis · 10-Q
PTLO earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Portillo’s delivered a strong third quarter, with revenue up 7.0% to $194.1 million, operating margin improving to 6.1%, and diluted EPS of $0.06 versus $0.02 a year earlier. New restaurant openings, pricing and labor…
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Portillo’s delivered a strong third quarter, with revenue up 7.0% to $194.1 million, operating margin improving to 6.1%, and diluted EPS of $0.06 versus $0.02 a year earlier. New restaurant openings, pricing and labor efficiencies supported results, but the first nine months still show flat same-store sales, a decline in operating income to $30.0 million from $33.3 million, and net income to $11.4 million from $14.8 million. Liquidity improved and operating cash flow was strong, although debt, a $343.2 million estimated TRA obligation, commodity inflation and restructuring remain material constraints.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
What stood out
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Revenue beat driven by new restaurants
Third-quarter revenue increased 7.0% year over year to $194.1 million, exceeding the $192.9 million consensus estimate. Restaurants outside the comparable base contributed $10.3 million of the year-over-year increase.
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Operating profitability rebounded
Operating income rose $6.3 million year over year to $11.8 million, lifting operating margin to 6.1% from 3.0%. Adjusted EBITDA increased 23.7% to $26.5 million, with margin expanding to 13.6% from 11.8%.
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EPS materially exceeded consensus
Net income attributable to Portillo’s increased to $4.5 million from $1.2 million, and diluted EPS was $0.06 versus $0.02 in the prior-year quarter, beating the $0.02 estimate.
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Same-store sales and labor improved
Same-restaurant sales increased 1.4% year over year, supported by a 2.1% increase in average check, partly offset by a 0.7% transaction decline. Labor expense declined to 26.0% of revenue from 26.6% due to labor efficiencies and higher average check.
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Restaurant base continues to expand
Portillo’s opened seven restaurants during the first three quarters of 2026 and reached 109 restaurants versus 98 a year earlier. Management plans to open one additional restaurant in Q4 2026.
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Cash generation strengthened
Operating cash flow increased 26.8% to $61.8 million for the first three quarters, while investing cash outflow declined 31.3% to $39.9 million. Cash and restricted cash ended at $24.8 million versus $17.2 million a year earlier.
What to watch
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Traffic declines beneath sales growth
Underlying demand remains pressured: same-restaurant transactions declined 0.7% in the quarter and 1.1% for the first three quarters, while year-to-date same-restaurant sales were flat versus a 0.5% increase in the prior-year period.
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Commodity inflation pressures margins
Commodity inflation was 2.2% in the quarter and 3.7% year to date. Food, beverage and packaging costs increased to 34.4% of quarterly revenue from 34.5% a year earlier and to 34.7% year to date from 34.3%.
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Debt and TRA obligations constrain liquidity
The company had $85.0 million of revolver borrowings and $4.2 million of outstanding letters of credit, leaving $60.8 million of revolver availability. Estimated future Tax Receivable Agreement payments totaled $343.2 million, including an expected $2.3 million payment within the next 12 months.
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Restructuring execution risk
A reduction in force affected approximately 17% of the Restaurant Support Center, producing $1.4 million of restructuring charges in the quarter and first three quarters. These charges and related strategic initiatives could recur as the company executes its operating reset.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance. Management expects to open one additional restaurant in Q4 2026 and states that operating cash flow is expected to meet needs for at least the next 12 months. Numeric fiscal 2026 guidance was addressed in the November 5, 2026 earnings release rather than this filing.
Earlier filings 4
10-K · February 24, 2026
Portillo’s 2025 10-K emphasizes a measured growth strategy built on a strong, nostalgic brand and multichannel operations: the company ended fiscal 2025 operating 102 restaurants across 11 states, launched its…
10-Q · November 4, 2025
Portillo's reported Q3 revenue of $181,428,000, up $3,176,000 versus the year-ago quarter, but operating income collapsed to $5,434,000 and diluted EPS fell to $0.02. Management recorded a $2.2 million non-cash…
10-Q · May 6, 2025
Portillo’s reported Q1 revenues of $176,437,000, up $10,606,000 (+6.4%) versus Q1 2024 ($165,831,000), while operating income was essentially flat at $10,381,000. Diluted EPS fell to $0.05 from $0.08 a year ago, driven…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.