Portillo's Announces CEO Departure, Names Interim Leader Amid Slow Growth and Investor Pressure

Portillo's CEO Michael Osanloo is departing the chain, with Michael Miles taking over as interim-CEO. Osanloo will remain an advisor for 90 days. Miles, along with other board members, will oversee the search for a new permanent CEO. Osanloo's departure follows a period of slow growth in same-restaurant sales and investor pressure, with the stock price plummeting by 75% since its IPO.

Portillo's Inc. (NASDAQ: PTLO) has announced significant changes in its leadership following a period of underperformance. The fast-casual restaurant chain, known for its Chicago-style favorites, has appointed Michael A. Miles, Jr. as its interim CEO, effective immediately. Michael Osanloo, the former President and CEO, has departed and will remain as a Special Advisor to Miles and the Board for the next 90 days Portillo’s appoints Miles as interim CEO, Osanloo departs^[1].

Miles, who previously served as President and Chief Operating Officer at Staples and Chief Operating Officer at Pizza Hut, has been a member of Portillo's Board of Directors since 2014. He previously held the position of Interim CEO from 2014 to 2015. Eugene Lee, Jr., who served as CEO at Darden Restaurants from 2015 to 2022, has been appointed as Lead Independent Director during the transition period.

The appointment comes amidst a period of slow growth in same-restaurant sales and investor pressure. The company's stock price has declined nearly 53% over the past year, with revenue growth slowing to 3.6%. Portillo's has revised its fiscal 2025 guidance, expecting same-store sales to decline between 1% and 1.5%, a notable shift from its earlier forecast of 1% to 3% growth Portillo’s appoints Miles as interim CEO, Osanloo departs^[1].

The company has established a Search Committee to identify a permanent CEO. The committee includes Directors Paulette Dodson, G.J. Hart, Eugene Lee, Jr., and Miles, and will be assisted by an executive search firm. Jefferies has maintained a Buy rating on the stock, though it lowered the price target to $10 from $12 due to softer third-quarter same-store sales. BofA Securities also maintained its Buy rating with a $14 price target, acknowledging the slower growth as a strategy to improve free cash flow. William Blair reiterated an Outperform rating, emphasizing the brand’s potential for geographic expansion beyond its Midwest base. Meanwhile, Stephens maintained an Equal Weight rating and a $10 price target, noting Portillo’s strategic reset to focus on core market execution and disciplined capital allocation Portillo’s appoints Miles as interim CEO, Osanloo departs^[1].

Portillo’s, which operates more than 90 restaurants across 10 states, completed its initial public offering in 2021 under Osanloo’s leadership. The company plans to open only 8 new units in fiscal 2026, which is below the consensus expectations of 13 and the company’s prior long-term growth algorithm of 12-15% annually Portillo’s appoints Miles as interim CEO, Osanloo departs^[1].