Portillo's Inc. Q1 FY2026 earnings call

Brett Patterson, President and CEO, discussed his focus on listening, learning, and building a strategy around operational excellence, integrated marketing, and disciplined development. He mentioned engaging with outside partners for research on customer segmentation, brand positioning, and menu satisfaction. Jennifer Pecoraro-Stripling joined as Chief Development Officer to focus on a value-creating development strategy. Michelle Hook, CFO, discussed first quarter results including revenue growth, same-store sales trends, cost trends, and financial metrics like EBITDA and cash flow. The company has opened additional restaurants and expects to open more during 2026.

During the first quarter, revenues were $182.6 million, an increase of $6.2 million or 3.5% versus last year. Non-comp restaurants contributed $7.7 million to the year-over-year increase. Same restaurant sales declined 0.1%, with a 0.9% decrease in average check partially offset by a 0.8% increase in transactions. Food, beverage, and packaging costs increased to 34.7% of revenues from 34.6% last year. Labor expense increased to 26.9% of revenues from 26.6% in the prior year. Other operating expenses increased 2.3 million or 10.7%, and occupancy expenses increased 1.2 million or 11.6%. Restaurant level adjusted EBITDA decreased 1.8 million to 34.8 million with margins declining approximately 170 basis points to 19.1%. Adjusted EBITDA decreased by 2.8 million to 18.5 million or 10.1% of revenue.

The company is comfortable with reiterating fiscal year guidance, but as strategic work progresses and new finance leadership is brought on board, expectations may evolve. Updates will be provided as appropriate throughout the year.

Questions and answers include discussions on first quarter comp trends, OpEx drivers, pricing impact, real estate strategy, productivity in Texas stores, AUVs decline, menu innovation vs perks, growth vision, margin hedging, geography performance, customer experience, and value perceptions