Portillo's Q3 Earnings: Margins Slip to 3.4%, Growth Narratives Tested

Portillo's (PTLO) net profit margin fell to 3.4% from 3.6% YoY, challenging bullish growth narratives. Despite this, the company's EPS is forecast to grow at 16.91% annually, outpacing the US market. Revenue is projected to grow at 8.5% per year, lagging the US market pace of 10.5%. The company trades at a price-to-earnings ratio of 14.3x and has a current share price of $4.86, which is above the estimated fair value of $1.05 on a discounted cash flow basis.