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- **Strategic Reset**: Slowed development to 8 openings in 2026, focusing on unit economics and gradual market entry. 
- **Financial Pressures**: Q3 EBITDA down 23.4% YoY due to non-comp restaurants, with 3-5% commodity inflation and 3-4% labor costs. 
- **Marketing Success**: Portillo's Perks drove trial in TX, with 1.4% check growth offsetting 2.2% transaction decline. 
- **Long-Term Growth**: 100th restaurant opening in GA signals expansion into new markets with smaller formats. 
- **Texas Focus**: Smaller restaurants ($4-5M sales), sampling events, and local partnerships to build awareness.

**【CEO Summary Section】**
- Michael Miles emphasized a strategic reset, slowing 2025-2026 development to focus on operational excellence and unit economics. New markets will adopt a gradual pace, avoiding cannibalization, and smaller formats ($4-5M sales). Q3 2025 same-store sales declined 0.2% YoY, with 2.2% transaction decline offset by 1.4% check growth. Portillo's Perks loyalty program is driving trial in Texas and Houston. 
- Management prioritizes customer experience: craveable menu, value, and service. 2025 EBITDA guidance revised to $90-94M, down 23% YoY due to non-comp restaurants. 100th restaurant opening in Georgia signals long-term growth. 

**【CFO Financial Commentary】**
- Q3 2025 revenue $181.4M (-1.8% YoY), with 1.8% growth from non-comp restaurants. EBITDA $21.4M (-23.4% YoY). Key metrics: 
  - Food/Costs 34.5% (+90bps YoY)
  - Labor 26.6% (+80bps YoY)
  - Commodity inflation 3-5% (beef-heavy)
  - G&A 11% (+100bps YoY) due to CEO transition costs
- 2025 EBITDA guidance $90-94M (-23% YoY). 2026 plans: 8 openings, slower Texas expansion. 

**【Q&A Highlights】**
- **Marketing Effectiveness**: Portillo's Perks drove Q3 trial (e.g., 50% burger offer). TX marketing spend focused on drive-thru, with 3.3% hourly wage growth. 
- **Commodity/Labor**: Beef inflation 6.3% Q3, 3-4% labor inflation forecast. 
- **Development**: 2026 openings limited to signed leases; 2027+ focus on Atlanta, gradual expansion. 
- **Value Proposition**: Pricing 3.7% below industry average; no Q4 price hikes. 
- **Texas Strategy**: Smaller formats, sampling events, and local partnerships to build awareness. 
- **2025 Outlook**: EBITDA $90-94M (-23% YoY), cash from ops $48.7M (-32% YoY).

Portillo's Inc. (PTLO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PTLO

PTLO fundamentals

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