Portillos 2025 Q2 Earnings Continued Earnings Growth Amid Revenue Rise

Portillo's reported fiscal 2025 Q2 earnings on August 5, 2025. While revenue increased modestly, the company’s net income and EPS showed strong year-over-year growth. However, the firm lowered its full-year sales outlook, signaling caution for the remainder of the year.

Revenue
Portillo's total revenue rose by 3.6% year-over-year to $188.46 million in Q2 2025, compared to $181.86 million in the same period of 2024.

Earnings/Net Income
The company’s profitability improved significantly, with net income increasing to $10.04 million in Q2 2025, a 17.7% rise from $8.53 million in Q2 2024. Earnings per share (EPS) also surged by 30.0% to $0.13, up from $0.10 the previous year. The earnings results reflect a positive trend in the company’s bottom-line performance.

Price Action
Portillo's stock price declined across all timeframes, falling 8.14% in the latest trading day, 26.54% during the most recent full trading week, and 40.91% month-to-date.

Post Earnings Price Action Review
A strategy of purchasing Portillo's shares following a positive revenue quarter and holding for 30 days has underperformed over the past three years, yielding a negative 51.70% return versus 0.00% for the benchmark. The strategy’s CAGR was -22.21%, with a volatility of 48.58% and a Sharpe ratio of -0.46, indicating poor risk-adjusted returns and significant drawdowns.

CEO Commentary
Michael Osanloo, President and CEO, highlighted second-quarter results, including restaurant-level adjusted EBITDA of $44.5 million with a 23.6% margin. Osanloo emphasized progress in loyalty engagement, technology adoption, and cost reductions, while addressing ongoing challenges in Texas noncomp restaurants. He expressed confidence in the company’s long-term strategy and its ability to improve transactions, new market performance, and unit economics.

Guidance
Michelle Greig Hook, CFO, updated 2025 guidance, projecting total revenue growth of 5%–7%, adjusted EBITDA growth of flat to low-single-digit, and same-restaurant sales in the 1%–3% range. Restaurant-level adjusted EBITDA margins are expected between 22.5%–23%. Capital spending remains focused on cost reductions and new unit development.

Additional News
Portillo's lowered its full-year sales outlook following the Q2 report, signaling investor concern. While the firm remains committed to its growth initiatives, the revised guidance reflects ongoing challenges, particularly in key markets. No major M&A activity or executive changes were reported in the 3 weeks following August 5, 2025. The company also did not announce any dividend or buyback plans in the period, maintaining its focus on operational efficiency and unit economics.