Portillo : Q1'26 PTLO Earnings Supplement

Published: 2026-05-05 08:27:10 ET PTLO

Published on 05/05/2026 at 08:27 am EDT

3.5%

Q1 Total Revenue Growth

Q1 Total revenue

$4.5 million

Q1 Operating Income

$0.5 million

Q1 Net Loss

$34.8 million

Q1 Restaurant-Level Adjusted EBITDA(2)

$18.5 million

Q1 Adjusted EBITDA(2)

Same restaurant sales include restaurants open for a minimum of 24 months and excludes a restaurant that is owned by C&O Chicago, LLC ("C&O") of which Portillo's owns 50% of the equity.

See appendix for a reconciliation to the most directly comparable GAAP financial measure.

A geometric comparable sales measure is used to determine the compounding effect of an earlier period's year over year comparable sales percentage on the subsequent period's year over year comparable sales percentage.

Q1 2026 PERFORMANCE

(6 in first half and 2 in second half)

We are unable to reconcile the financial target for adjusted EBITDA growth and restaurant-level adjusted EBITDA margin, to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.

FISCAL 2026 FINANCIAL TARGETS

2026 Openings

Fort Worth, TX (Opened in January)

Humble, TX (Opened in February)

El Paso, TX (Opened in March)

North Dallas, TX (Opened in March)

Frisco, TX (Opened in April)

Schertz, TX (First-in-market, San Antonio)

DFW Airport (First-ever)

Chicago, IL (In-line)

2026 DEVELOPMENT EXPECTATIONS - 8 NEW RESTAURANTS

($ in millions) ($ in millions) ($ in millions)

$58

$44

$38

$35

$21

$17

$711 $732 $738

2024 2025 LTM Q1

2026

2024 2025 LTM Q1 2026

SAME RESTAURANT SALES (1)

RESTAURANT-LEVEL ADJ. EBITDA (Margin) (2)

ADJ. EBITDA (Margin) (2)

$168

$158

$157

23.7%

21.6%

21.2%

(0.6)%

(0.5)%

(0.9)%

($ in millions) ($ in millions)

$105

$97

$95

14.7%

13.3%

12.8%

2024 2025 LTM Q1 2026

Same restaurant sales include restaurants open for a minimum of 24 months and excludes a restaurant that is owned by C&O Chicago, LLC ("C&O") of which Portillo's owns 50% of the equity. For fiscal 2024, same-restaurant sales compares the 52 weeks from January 1, 2024 through December 29, 2024 to the 52 weeks from January 2, 2023 through December 31, 2023.

See appendix for a reconciliation to the most comparable GAAP financial measure.

FINANCIAL PROFILE

TOTAL REVENUE

OPERATING INCOME

NET INCOME

Quarter Ended

March 29, 2026

March 30, 2025

REVENUES, NET $ 182,623 100.0 % $ 176,437 100.0 %

COST AND EXPENSES:

Restaurant operating expenses:

Food, beverage and packaging costs

63,285

34.7 %

61,102

34.6 %

Labor

49,195

26.9 %

46,868

26.6 %

Occupancy

11,184

6.1 %

10,021

5.7 %

Other operating expenses

24,115

13.2 %

21,790

12.4 %

Total restaurant operating expenses

147,779

80.9 %

139,781

79.2 %

General and administrative expenses

20,359

11.1 %

18,903

10.7 %

Pre-opening expenses

2,550

1.4 %

508

0.3 %

Depreciation and amortization

7,936

4.3 %

7,040

4.0 %

Net income attributable to equity method investment

(206)

(0.1)%

(164)

(0.1)%

Other income, net

(287)

(0.2)%

(12)

- %

OPERATING INCOME

4,492

2.5 %

10,381

5.9 %

Interest expense

5,627

3.1 %

5,749

3.3 %

Interest income

(50)

- %

(71)

- %

Tax Receivable Agreement liability adjustment

(412)

(0.2)%

(647)

(0.4)%

(LOSS) INCOME BEFORE INCOME TAXES

(673)

(0.4)%

5,350

3.0 %

Income tax (benefit) expense

(164)

(0.1)%

1,360

0.8 %

NET (LOSS) INCOME

(509)

(0.3)%

3,990

2.3 %

Net (loss) income attributable to non-controlling interests

(107)

(0.1)%

677

0.4 %

NET (LOSS) INCOME ATTRIBUTABLE TO PORTILLO'S INC.

(402)

(0.2)%

$ 3,313

1.9 %

(Loss) income per common share attributable to Portillo's Inc.:

Basic

$ (0.01)

$ 0.05

Diluted

$ (0.01)

$ 0.05

Weighted-average common shares outstanding:

Basic

72,076,398

63,837,940

Diluted

72,076,398

66,468,491

STATEMENT OF OPERATIONS

Quarter Ended

March 29,

2026

March 30,

2025 $ Change % Change

Same-restaurant sales (83 restaurants) (1)

$161,263

$161,420

(157)

(0.1)%

Restaurants not yet in comparable base opened in fiscal 2026 (4 restaurants) (1)

1,536

Restaurants not yet in comparable base opened in fiscal 2025 (8 restaurants) (1)

9,771

Restaurants not yet in comparable base opened in fiscal 2024 (10 restaurants) (1)

8,363

11,939

(3,576)

(30.0)%

Other (2)

1,690

3,078

(1,388)

(45.1)%

Revenues, net

$ 182,623

$ 176,437

$ 6,186

3.5 %

(1) Total restaurants indicated are as of March 29, 2026. Excludes a restaurant that is owned by C&O of which Portillo's owns 50% of the equity.

(2) Includes revenue from direct shipping sales and non-traditional locations.

REVENUE SUMMARY - Q1 2026

Quarter Ended

March 29, 2026

March 30, 2025

Total Restaurants (a)

106

AUV (in millions) (a)

$ 8.3

$ 8.7

Change in same-restaurant sales (b)

(0.1)%

1.8 %

Adjusted EBITDA (in thousands) (b)

$ 18,453

$ 21,209

Adjusted EBITDA Margin (b)

10.1 %

12.0 %

Restaurant-Level Adjusted EBITDA (in thousands) (b)

$ 34,844

$ 36,656

Restaurant-Level Adjusted EBITDA Margin (b)

19.1 %

20.8 %

Includes a restaurant that is owned by C&O of which Portillo's owns 50% of the equity. AUVs for the quarters ended March 29, 2026 and March 30, 2025 represent AUVs for the twelve months ended March 29, 2026 and March 30, 2025, respectively. Total restaurants indicated are as of March 29, 2026.

Excludes C&O.

SELECTED OPERATING DATA

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents net income (loss) before depreciation and amortization, interest expense, interest income and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues, net. We use Adjusted EBITDA and Adjusted EBITDA Margin

(i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management's performance when determining incentive compensation.

We are unable to reconcile the long-term outlook for Adjusted EBITDA to net income (loss), the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reconciliation is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information because we cannot accurately predict all of the components of the adjusted calculations and the non-GAAP measure may be materially different than the GAAP measure.

How These Measures Are Useful

We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA Margin have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP.

ADJUSTED EBITDA DEFINITIONS

March 29, 2026

March 30, 2025

Net (loss) income

(509)

3,990

Net (loss) income margin

(0.3)%

2.3 %

Depreciation and amortization

7,936

7,040

Interest expense

5,627

5,749

Interest income

(50)

(71)

Income tax (benefit) expense

(164)

1,360

EBITDA

12,840

18,068

Deferred rent (1)

1,734

1,376

Equity-based compensation

3,230

1,950

Cloud-based software implementation costs (2)

183

Amortization of cloud-based software implementation costs (3)

280

218

Other loss (4)

Strategic realignment costs (5)

709

Tax Receivable Agreement liability adjustment (6)

(412)

(647)

Adjusted EBITDA

18,453

21,209

Adjusted EBITDA Margin (7)

10.1 %

12.0 %

Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.

Represents non-capitalized third party consulting and software licensing costs incurred in connection with the implementation of a new HCM system which are included within general and administrative expenses.

Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.

Represents loss on disposal of property and equipment included within other income, net.

Represents $0.5 million of costs related to the Company's strategic reset of its development and growth plans and $0.2 million related to CEO transition and replacement costs. These costs are included within general and administrative expenses.

Represents remeasurement of the Tax Receivable Agreement liability.

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

ADJUSTED EBITDA RECONCILIATION

Quarter Ended

LTM Fiscal Years Ended

March 29, 2026 December 28, 2025 December 29, 2024

Net income

$ 16,592

$ 21,092

$ 35,076

Net income margin

2.2 %

2.9 %

4.9 %

Depreciation and amortization

30,008

29,112

27,297

Interest expense

22,686

22,808

25,616

Interest income

(254)

(275)

(309)

Income tax expense

1,473

2,997

6,799

EBITDA

70,505

75,734

94,479

Deferred rent (1)

7,198

6,840

5,255

Equity-based compensation

7,773

6,493

11,151

Cloud-based software implementation costs (2)

267

679

Amortization of cloud-based software implementation costs (3)

1,153

1,091

586

Other loss (4)

2,645

2,635

1,184

Transaction-related fees & expenses (5)

742

575

Strategic realignment costs (6)

7,183

6,474

Tax Receivable Agreement liability adjustment (7)

(2,710)

(2,945)

(9,149)

Adjusted EBITDA

$ 94,573

$ 97,331

$ 104,760

Adjusted EBITDA Margin (8)

12.8 %

13.3 %

14.7 %

Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.

Represents non-capitalized third party consulting and software licensing costs incurred in connection with the implementation of a new ERP and HCM systems which are included within general and administrative expenses.

Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.

Represents loss on disposal of property and equipment, a legacy Barnelli's trade name impairment charge in fiscal 2025, and a technology asset impairment charge in fiscal 2024 included within other loss (income), net.

Represents certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees included within general and administrative expenses.

Represents costs related to the Company's strategic reset of its development and growth plans and costs incurred in connection with the departure of our CEO and CDO. These costs are included within general and administrative expenses.

Represents remeasurement of the Tax Receivable Agreement liability.

Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

ADJUSTED EBITDA RECONCILIATION

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin

Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses, pre-opening expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenues, net.

How These Measures Are Useful

We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate. Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin have limitations as analytical tools and should not be considered as a substitute for analysis of our results as reported under GAAP.

Limitations of the Usefulness of This Measure

Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are not required by, nor presented in accordance with GAAP. Rather, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are supplemental measures of operating performance of our restaurants. You should be aware that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are not indicative of overall results for the Company, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. In addition, our calculations thereof may not be comparable to similar measures reported by other companies.

RESTAURANT-LEVEL ADJUSTED EBITDA DEFINITIONS

Quarter Ended

March 29, 2026

March 30, 2025

Operating income

$ 4,492

$ 10,381

Operating income margin

2.5 %

5.9 %

General and administrative expenses

20,359

18,903

Pre-opening expenses

2,550

508

Depreciation and amortization

7,936

7,040

Net income attributable to equity method investment

(206)

(164)

Other income, net

(287)

(12)

Restaurant-Level Adjusted EBITDA

$ 34,844

$ 36,656

Restaurant-Level Adjusted EBITDA Margin

19.1 %

20.8 %

RESTAURANT-LEVEL ADJUSTED EBITDA RECONCILIATION

LTM Fiscal Years Ended

March 29, 2026 December 28, 2025 December 29, 2024

Operating income

37,788

$ 43,677

$ 58,033

Operating income margin

5.1 %

6.0 %

8.2 %

General and administrative expenses

78,596

77,140

75,089

Pre-opening expenses

10,844

8,802

9,236

Depreciation and amortization

30,008

29,112

27,297

Net income attributable to equity method investment

(1,317)

(1,275)

(1,229)

Other loss (income), net

671

946

(312)

Restaurant-Level Adjusted EBITDA

$ 156,590

$ 158,402

$ 168,114

Restaurant-Level Adjusted EBITDA Margin

21.2 %

21.6 %

23.7 %

RESTAURANT-LEVEL ADJUSTED EBITDA RECONCILIATION

Investor Contact:

Chris Brandon, Vice President of Investor Relations 312.931.5578

[email protected]

Media Contact:

Sara Wirth, Director of Communications & PR [email protected]

CONTACT INFORMATION

Disclaimer

Portillo's Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 12:26 UTC.