Portillo's (PTLO) Q1 2026 earnings summary

Executive summary

• Revenue increased 3.5% year-over-year to $182.6 million, driven by new restaurant openings, while same-restaurant sales declined 0.1%.

• Operating income fell to $4.5 million from $10.4 million, and net loss was $0.5 million versus net income of $4.0 million in the prior year quarter.

• Adjusted EBITDA decreased 13% to $18.5 million; Restaurant-Level Adjusted EBITDA dropped 4.9% to $34.8 million.

• Leadership changes included a new CEO, Board Chair, Chief Development Officer, and CFO departure effective May 2026.

• CEO emphasized operational excellence, integrated marketing, and disciplined development as strategic pillars for long-term growth.

Financial highlights

• Total revenue: $182.6 million, up $6.2 million or 3.5% year-over-year.

• Same-restaurant sales declined 0.1%, with a 0.9% decrease in average check offset by a 0.8% increase in transactions.

• Restaurant-Level Adjusted EBITDA: $34.8 million (19.1% margin), Adjusted EBITDA: $18.5 million (10.1% margin).

• Operating income: $4.5 million (down from $10.4 million year-over-year); net loss: $0.5 million (compared to net income of $4.0 million prior year).

• Cash from operating activities rose 85.8% year-over-year to $17.6 million; quarter-end cash was $24 million.

Outlook and guidance

• Plans to open 8 new units in fiscal 2026, including the first airport and second in-line location.

• Commodity inflation expected in the mid-single digits; labor inflation forecast at 3–3.5%.

• Restaurant-Level Adjusted EBITDA margin targeted at 20.5–21%; Adjusted EBITDA expected to be flat versus 2025 at $55–$60 million.

• Capital expenditures projected at $80–$82 million.

• Negative same-restaurant sales trends continued into April, with headwinds expected in May due to prior year promotional comparisons.