Portillo’s Inc. Announces First Quarter 2026 Financial Results (Form 8-K)

Portillo's Inc. Announces First Quarter 2026 Financial Results

Oak Brook, IL- May 5, 2026-Portillo's Inc. ("Portillo's" or the "Company") (NASDAQ: PTLO), the one-of-a-kind restaurant concept known for its menu of Chicago-style favorites, today reported financial results for the first quarter ended March 29, 2026.

First Quarter 2026 Performance Highlights (vs. First Quarter 2025):

•Total revenue of $182.6 million, an increase of 3.5% or $6.2 million

•Same-restaurant sales decrease of -0.1%

•Operating income of $4.5 million, a decrease of $5.9 million

•Net loss of $0.5 million, a decrease of $4.5 million from net income of $4.0 million

•Restaurant-Level Adjusted EBITDA(1) of $34.8 million, a decrease of $1.8 million

•Adjusted EBITDA(1) of $18.5 million, a decrease of $2.8 million

(1) Restaurant-Level Adjusted EBITDA and Adjusted EBITDA are non-GAAP measures. Please see definitions and the reconciliations of these non-GAAP measures accompanying this release.

"My first couple of months as CEO of Portillo's have been productive and encouraging, and our team is making progress in identifying the priorities that will drive our growth strategy," said Brett Patterson, President and Chief Executive Officer. "Our focus is on building a sustainable, long-term plan centered on three priorities: consistently great operations, an integrated marketing strategy, and a disciplined development strategy that creates compelling shareholder value. I'm optimistic about Portillo's future and look forward to sharing more as our plan takes shape."

First Quarter 2026 Financial and Operating Results

Revenues for the quarter ended March 29, 2026 were $182.6 million compared to $176.4 million for the quarter ended March 30, 2025, an increase of $6.2 million or 3.5%. The increase in revenues was primarily attributed to the opening of eight restaurants in fiscal 2025 and four restaurants during the quarter ended March 29, 2026, partially offset by a decrease in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined below) contributed $7.7 million of the total year-over-year increase. Same-restaurant sales decreased 0.1%, or $0.2 million in the quarter. The same-restaurant sales decline was attributable to a decrease in average check of 0.9%, partially offset by an increase in transactions of 0.8%. The lower average check was driven by an approximate 1.0% decrease in product mix, partially offset by a 0.1% increase in certain menu prices, net of increased promotional offers. For the purpose of calculating same-restaurant sales for the quarter ended March 29, 2026, sales for 83 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

Total restaurant operating expenses for the quarter ended March 29, 2026 were $147.8 million compared to $139.8 million for the quarter ended March 30, 2025, an increase of $8.0 million or 5.7%. The increase was primarily driven by the opening of eight restaurants in fiscal 2025 and four restaurants during the quarter ended March 29, 2026. Additionally, a 1.8% increase in commodity prices negatively impacted food, beverage, and packaging costs. The increase in labor expense was driven by incremental investments to support our team members. Lastly, the increase in other operating expenses was primarily driven by the aforementioned opening of new restaurants, and an increase in repairs and maintenance, operating supplies, and insurance expense, partially offset by lower cleaning expenses.

General and administrative expenses for the quarter ended March 29, 2026 were $20.4 million compared to $18.9 million for the quarter ended March 30, 2025, an increase of $1.5 million or 7.7%. This increase was primarily driven by higher equity-based compensation and an increase in advertising and professional fees, including $0.5 million of dead site costs. The increase was partially offset by lower vacation-related wage expense, software licensing and legal expenses.

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Operating income for the quarter ended March 29, 2026 was $4.5 million compared to $10.4 million for the quarter ended March 30, 2025, a decrease of $5.9 million or 56.7% as higher revenue was more than offset by the aforementioned expense factors.

Net loss for the quarter ended March 29, 2026 was $0.5 million compared to a net income of $4.0 million for the quarter ended March 30, 2025, a decrease of $4.5 million or 112.8%. The decrease in net income was primarily due to a decrease in operating income of $5.9 million due to the aforementioned factors, partially offset by a decrease in income taxes of $1.5 million.

Restaurant-Level Adjusted EBITDA* for the quarter ended March 29, 2026 was $34.8 million compared to $36.7 million for the quarter ended March 30, 2025, a decrease of $1.8 million or 4.9%.

Adjusted EBITDA* for the quarter ended March 29, 2026 was $18.5 million compared to $21.2 million for the quarter ended March 30, 2025, a decrease of $2.8 million or 13.0%.

*A reconciliation of Restaurant-Level Adjusted EBITDA and Adjusted EBITDA and the nearest GAAP financial measure is included under "Non-GAAP Measures" in the accompanying financial data below.

Development Highlights

During the quarter ended March 29, 2026, we opened four restaurants. Subsequent to March 29, 2026, we opened one additional restaurant, bringing our total restaurant count to 107, as of the filing of this press release, including a restaurant owned by C&O, of which Portillo's owns 50% of the equity. We plan to open three additional restaurants in the remainder of fiscal 2026, including our first airport location at Dallas-Fort Worth International Airport and our second in-line location which will be in Chicago.

Below are the restaurants opened thus far in fiscal 2026:

Location			Opening Month			Fiscal Quarter Opened
Fort Worth, Texas			January 2026			Q1 2026
Humble, Texas			February 2026			Q1 2026
Dallas, Texas			March 2026			Q1 2026
El Paso, Texas			March 2026			Q1 2026
Frisco, Texas			April 2026			Q2 2026

Fiscal 2026 Financial Targets

Based on current expectations, fiscal 2026 outlook is as follows:

			Current Targets
New Units			8 new units
Commodity inflation			Mid single digit
Labor inflation			3% to 3.5%
Restaurant-level adjusted EBITDA margin*			20.5% to 21%
General and administrative expenses			$80-$82 million
Adjusted EBITDA*			Flat vs. 2025
Capital expenditures			$55-$60 million

*We are unable to reconcile the financial target for adjusted EBITDA and restaurant-level adjusted EBITDA margin to net income/loss growth and operating income/loss margin, the respective 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.

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Chief Financial Officer Departure

Michelle Hook, Chief Financial Officer, will depart Portillo's to pursue another opportunity, effective today, May 5, 2026. Since joining Portillo's in 2020, she has led the Company's financial function, helping drive a period of meaningful growth, including playing an important role in the Company's 2021 IPO and expansion into new markets.

The Board has initiated a search for her successor and is focused on identifying a strategic leader with a demonstrated track record of delivering strong results and leading the finance function within high-growth brands to support the Company's next phase of growth.

The following definitions apply to these terms as used in this release:

Change in Same-Restaurant Sales - The change in same-restaurant sales is the percentage change in year-over-year revenue for the Comparable Restaurant Base, which is defined as the number of restaurants open for at least 24 full fiscal periods. For the quarters ended March 29, 2026 and March 30, 2025, there were 83 and 74 restaurants in our Comparable Restaurant Base, respectively.

A change in same-restaurant sales is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our change in same-restaurant sales allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company's historical and prospective operating performance.

Average Unit Volume - AUV is the total revenue (excluding gift card and Perks loyalty program breakage) recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

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. See also "Non-GAAP Financial Measures."

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 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. See also "Non-GAAP Financial Measures."

For more information about the Company's Non-GAAP measures, how they are calculated and reconciled and why management believes that they are useful, see "Non-GAAP Financial Measures" below.

Earnings Conference Call

The Company will host a conference call to discuss its financial results for the first quarter ended on Tuesday, May 5, 2026, at 10:00 AM ET. The conference call can be accessed live over the phone by dialing 877-407-3982. A telephone replay will be available shortly after the call has concluded and can be accessed by dialing 844-512-2921, and using passcode #13748480. The webcast replay will be available at investors.portillos.com shortly after the call has concluded.

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About Portillo's

Portillo's (NASDAQ: PTLO) is a one-of-a-kind brand that has grown from a small hot dog trailer in Chicago to more than 100 restaurants across 11 states. Known for its unique menu of craveable Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and iconic chocolate cake, Portillo's is beloved in both its home of Chicagoland and across new and growing markets. Portillo's operates a company-owned model of not just restaurants - but experience-focused destinations that blend dine-in, drive-thru, takeout and delivery to serve our guests with the food they crave. And now, after six decades of success and counting, Portillo's is on a mission to bring its iconic food and unforgettable dining experience to guests across the country.

Guests can join Portillo's Perks, the brand's loyalty program, at Portillos.com/perks to earn and redeem delicious rewards. Every visit brings fans closer to exclusive perks, badges and surprise offers. Fans can also download the Portillo's App for iOS or Android or visit Portillo's website to order ahead for pickup or delivery and get the best dill on these bun-believably delicious Chicago-style favorites and more. Plus, Portillo's ships its craveworthy food to all 50 states via its website.

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