CHICAGO - Portillo's Inc. (NASDAQ:PTLO) reported third quarter results that fell short of analyst expectations on the top line, sending shares down 3.8% in premarket trading Tuesday.
The Chicago-style hot dog chain posted revenue of $178.3 million for the quarter, missing the consensus estimate of $182.31 million. However, adjusted earnings per share came in at $0.11, beating expectations of $0.06.
Same-restaurant sales decreased 0.9% YoY, compared to 3.9% growth in the same quarter last year. The company cited lower transaction volumes as a key factor behind the sales decline.
"While our top line results for the quarter fell short of expectations, I'm proud of how our team protected margins and drove cash flow," said Michael Osanloo, President and CEO of Portillo's.
Despite the revenue miss, Portillo's was able to grow its operating income to $16.0 million, up from $15.1 million in Q3 2023. The company also raised its net income to $8.8 million from $6.5 million a year ago.
For fiscal 2024, Portillo's now expects same-restaurant sales to decline approximately 1%, compared to its previous outlook of flat to slightly positive growth. However, the company maintained its restaurant-level adjusted EBITDA margin target of 23-24%.
Portillo's opened four new restaurants during the first three quarters of 2024 and plans to open five more in December, bringing its total new openings to 10 for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.