Portillo’s Inc. Reports Fourth‑Quarter and Full‑Year 2025 Results Amid Margins Pressure

Oak Brook, Illinois – On February 24, 2026, Portillo’s Inc. (NASDAQ: PTLO) released its financial results for the quarter ended December 31, 2025, and for the full fiscal year. The Chicago‑style fast‑casual chain, known for its hot dogs, Italian beef sandwiches and chocolate cake, posted modest revenue growth but faced tightening margins driven by rising labor, food and occupancy costs.

Key Highlights

  • Fourth‑Quarter 2025

  • Total revenue: $185.7 million (+0.6 % YoY).

  • Same‑restaurant sales: –3.3 %.

  • Operating income: $10.3 million (down $3.5 million).

  • Net income: $6.3 million (down $6.2 million).

  • Restaurant‑level Adjusted EBITDA: $40.6 million (down $4.7 million).

  • Adjusted EBITDA (GAAP): $24.7 million (down $0.5 million).

  • Fiscal Year 2025

  • Total revenue: $732.1 million (+3.0 % YoY).

  • Same‑restaurant sales: –0.5 %.

  • Operating income: $43.7 million (down $14.4 million).

  • Net income: $21.1 million (down $14.0 million).

  • Restaurant‑level Adjusted EBITDA: $158.4 million (down $9.7 million).

  • Adjusted EBITDA (GAAP): $97.3 million (down $7.4 million).

Operational Context

The company opened eight new restaurants during the quarter, bringing its total to 102 units by year‑end (104 units after additional openings). While the expansion strategy adds capacity, the associated costs—new‑unit opening expenses and inflationary pressure on ingredients—contributed to the decline in operating income and net earnings.

Earnings Per Share

Portillo’s also confirmed that its earnings per share for the fourth quarter surpassed analyst expectations by $0.05. This incremental earnings beat came despite the modest revenue increase and margin compression. The company’s price‑to‑earnings ratio remains at 13.45, reflecting investor confidence in the brand’s long‑term resilience.

Market Reaction

On the day of the announcement, PTLO’s stock traded at $5.79, within the 52‑week range of $4.41–$15.23. The share price rose 4.32 % following the earnings release, outperforming peers such as El Pollo Loco (LOCO) and RICK. The upward move underscores market optimism about the company’s ability to navigate cost pressures while continuing its expansion trajectory.

Strategic Outlook

Portillo’s management highlighted a focus on menu innovation, cost controls, and a disciplined opening plan. The company plans to continue leveraging its Chicago‑style brand to drive same‑restaurant sales, while pursuing operational efficiencies to mitigate the impact of rising input costs.

Portillo’s Inc. operates across the United States, offering a diverse menu of beef dishes, fresh pasta, gourmet salads, sandwiches, and burgers. The company also provides catering, event hosting, and party services. More information can be found on its website at www.portillos.com .