Portillo's Q2 2025: Contradictions in Texas Expansion, Breakfast Strategy, and Menu Impact

Second Quarter Financial Performance:
- Portillo's reported revenues of $188.5 million for Q2 2025, reflecting an increase of $6.6 million or 3.6% compared to the previous year.
- Revenue growth was driven by both non-comparable restaurants and a 0.7% increase in same-restaurant sales.

Non-Comparable Restaurant Performance:
- Non-comp restaurants contributed $6.1 million in revenue during the quarter.
- The delay in the opening of a Stafford, Texas restaurant and slower ramp-up in Texas locations impacted the expected sales weeks.

Same-Restaurant Sales and Menu Pricing Strategy:
- Same-restaurant sales increased by 0.7%, with a 2.1% increase in average check driven by a 3.4% menu price increase and partially offset by a 1.4% decrease in transactions.
- The increase in average check was supported by three promotions: Italian Beef Month, the launch of The Leo sandwich, and a buy-one, get-one offer for loyalty members.

Operational and Strategic Initiatives:
- The company is focused on four core initiatives to drive transaction growth: multichannel marketing, operational improvements, kiosk adoption, and evolving Portillo's Perks for guest engagement.