Latest news with #BerkshirePartners
Yahoo
20-05-2025
- Business
- Yahoo
Why Portillo's Stock Crashed Tuesday Morning
Investors were concerned about the sale of a large block of Portillo's stock. This was not a secondary offering, but the sale of shares by an early investor. Portillo's stock remains attractively priced. 10 stocks we like better than Portillo's › Shares of Portillo's (NASDAQ: PTLO) plunged on Tuesday, with the stock falling as much as 10.2% in early trading. As of 11:34 a.m. ET, the stock was still down 5.9%. The catalyst that crushed the fast-casual restaurant stock was the announcement of a large block stock sale, but it's important to understand the details, as this was not a secondary offering. In a series of regulatory filings that dropped after market close on Monday, Portillo's announced the sale of a large block of its stock by early investor Berkshire Partners. The private equity firm has held a stake in the restaurant chain since 2014, long before the company's initial public offering (IPO) in October 2021. When Portillo's entered the public markets, Berkshire Partners exchanged its private equity ownership for shares of the company's stock, which have since been held in several of Berkshire's funds. The sale was for 10 million shares, a transaction orchestrated by investment bank Jefferies Financial Group. The deal had been priced in a range of between $12.40 and $12.60, with a final price of $12.40, which was at the low end of the range. As an early investor, Berkshire Partners has held its stake for more than a decade and retained much of its ownership of Portillo's even after the IPO, at the time controlling more than 64% of the voting rights of the company. This suggests that the private equity fund is finally looking to recoup some of its investment. Like many restaurant stocks, Portillo's has felt the weight of inflation, particularly regarding the cost of its products and employee-related expenses. However, the company has resisted the urge to raise prices and continues to generate among the highest average unit volume (or sales per location) of any restaurant in the fast-casual industry. Furthermore, at just 28 times earnings and 1 times sales, Portillo's stock is dirt cheap. The company has work to do, but I believe it's on the right track. Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Danny Vena has positions in Portillo's. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy. Why Portillo's Stock Crashed Tuesday Morning was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
12-05-2025
- Business
- Globe and Mail
This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting
Every year, investors from around the world gather in Omaha for a chance to talk to legendary investor Warren Buffett at the annual meeting for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders. The 2025 gathering reportedly had 20,000 people in attendance, and many waited for hours for their chance to ask a question of the Oracle of Omaha. One such member of the audience finally got his chance. He stepped up to the microphone and said, "Out of all the companies that Berkshire Hathaway owns, there was one that you acquired, the Chicago-based company Portillo's (NASDAQ: PTLO) -- hot dogs -- how did you know that this would be a good fit for the overall company's portfolio?" Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Buffett was gracious but visibly confused by the question. And that's because Berkshire Hathaway didn't acquire Portillo's and has never invested in the stock -- it's not among the things that Berkshire Hathaway owns. This appears to be a case of mistaken identity. In 2014, private equity firm Berkshire Partners -- not affiliated with Buffett's Berkshire Hathaway -- invested in Portillo's when it was still a privately held business. As of Dec. 29, Berkshire Partners was still the largest shareholder in Portillo's with a nearly 19% stake. But before the company's initial public offering (IPO) Berkshire Partners owned more than 60% of the outstanding shares, meaning its stake has decreased significantly. And, again, Berkshire Partners isn't Berkshire Hathaway. That said, something strange happened immediately after the annual meeting for Berkshire Hathaway. Portillo's stock climbed about 10% over the next few trading sessions. Maybe it was just a coincidence. Or maybe, just maybe, people at Berkshire Hathaway's meeting decided to look into Portillo's and liked what they saw. I'm only speculating, but I don't think this is as far-fetched as it sounds. In fact, I believe Portillo's stock offers at least one thing that Warren Buffett would appreciate: This restaurant stock is an incredible value stock right now. Why Portillo's stock is a good value "I think all good investing is value investing." -- longtime Buffett colleague Charlie Munger. If investors can find a profitable business with years of growth opportunity that trades at a bargain price, they may have just found a winner. And that's what I believe Portillo's stock can be for investors over the next 10 years. As of this writing, Portillo's stock has a market capitalization of $721 million -- this is the aggregate value of its shares. In other words, it would hypothetically cost someone this much to own the company outright. Let's suppose someone did that. How long would it be before their investment was paid back? Consider that Portillo's had 94 restaurant locations at the end of the first quarter of 2025. These restaurants have generated $58 million in operating income over the last 12 months. Assuming the company continued to earn this much profit every year, then a hypothetical investor would make back their investment in 12 years -- in other words, it trades at 12 times its operating income. This isn't bad and suggests that Portillo's stock is a value stock. That said, if Portillo's can grow its operating income, then it would be an even better value today. And I believe that it can grow its operating income in dramatic fashion. This starts with Portillo's restaurant development plans. As mentioned, it has fewer than 100 locations today, but locations average $8.7 million in annual sales, which is outstanding and suggests strong consumer demand wherever it's located. For this reason, management plans to expand to meet that demand, targeting 12 new restaurant openings this year. Annually, Portillo's plans to grow its restaurant base by 12% to 15%. This means its could potentially triple or quadruple in size over the next decade. Assuming the economics of the business hold strong, this is a company with the ability to grow its profits substantially. Portillo's isn't as flashy of an investment idea as some other busineses. But restaurants with strong economics have made great investments in the past as they've grown from regional chains to national ones. Portillo's could be the latest. And buying it at a bargain price today certainly helps when it comes to future returns. Some people might be finding out about Portillo's stock today because of a mistaken question at Berkshire Hathaway's meeting. But I find that sometimes the best investment ideas are ones that are stumbled upon seemingly by chance. The trick is to not waste good chances when they come along. Should you invest $1,000 in Portillo's right now? Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor 's total average return is907% — a market-crushing outperformance compared to163%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025
Yahoo
12-05-2025
- Business
- Yahoo
This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting
Berkshire Hathaway doesn't own this Chicago-based restaurant company, but it might check some important boxes for value investors. This stock is already cheap and has a path to significantly growing its profits long term. 10 stocks we like better than Portillo's › Every year, investors from around the world gather in Omaha for a chance to talk to legendary investor Warren Buffett at the annual meeting for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shareholders. The 2025 gathering reportedly had 20,000 people in attendance, and many waited for hours for their chance to ask a question of the Oracle of Omaha. One such member of the audience finally got his chance. He stepped up to the microphone and said, "Out of all the companies that Berkshire Hathaway owns, there was one that you acquired, the Chicago-based company Portillo's (NASDAQ: PTLO) -- hot dogs -- how did you know that this would be a good fit for the overall company's portfolio?" Buffett was gracious but visibly confused by the question. And that's because Berkshire Hathaway didn't acquire Portillo's and has never invested in the stock -- it's not among the things that Berkshire Hathaway owns. This appears to be a case of mistaken identity. In 2014, private equity firm Berkshire Partners -- not affiliated with Buffett's Berkshire Hathaway -- invested in Portillo's when it was still a privately held business. As of Dec. 29, Berkshire Partners was still the largest shareholder in Portillo's with a nearly 19% stake. But before the company's initial public offering (IPO) Berkshire Partners owned more than 60% of the outstanding shares, meaning its stake has decreased significantly. And, again, Berkshire Partners isn't Berkshire Hathaway. That said, something strange happened immediately after the annual meeting for Berkshire Hathaway. Portillo's stock climbed about 10% over the next few trading sessions. Maybe it was just a coincidence. Or maybe, just maybe, people at Berkshire Hathaway's meeting decided to look into Portillo's and liked what they saw. I'm only speculating, but I don't think this is as far-fetched as it sounds. In fact, I believe Portillo's stock offers at least one thing that Warren Buffett would appreciate: This restaurant stock is an incredible value stock right now. "I think all good investing is value investing." -- longtime Buffett colleague Charlie Munger. If investors can find a profitable business with years of growth opportunity that trades at a bargain price, they may have just found a winner. And that's what I believe Portillo's stock can be for investors over the next 10 years. As of this writing, Portillo's stock has a market capitalization of $721 million -- this is the aggregate value of its shares. In other words, it would hypothetically cost someone this much to own the company outright. Let's suppose someone did that. How long would it be before their investment was paid back? Consider that Portillo's had 94 restaurant locations at the end of the first quarter of 2025. These restaurants have generated $58 million in operating income over the last 12 months. Assuming the company continued to earn this much profit every year, then a hypothetical investor would make back their investment in 12 years -- in other words, it trades at 12 times its operating income. This isn't bad and suggests that Portillo's stock is a value stock. That said, if Portillo's can grow its operating income, then it would be an even better value today. And I believe that it can grow its operating income in dramatic fashion. This starts with Portillo's restaurant development plans. As mentioned, it has fewer than 100 locations today, but locations average $8.7 million in annual sales, which is outstanding and suggests strong consumer demand wherever it's located. For this reason, management plans to expand to meet that demand, targeting 12 new restaurant openings this year. Annually, Portillo's plans to grow its restaurant base by 12% to 15%. This means its could potentially triple or quadruple in size over the next decade. Assuming the economics of the business hold strong, this is a company with the ability to grow its profits substantially. Portillo's isn't as flashy of an investment idea as some other busineses. But restaurants with strong economics have made great investments in the past as they've grown from regional chains to national ones. Portillo's could be the latest. And buying it at a bargain price today certainly helps when it comes to future returns. Some people might be finding out about Portillo's stock today because of a mistaken question at Berkshire Hathaway's meeting. But I find that sometimes the best investment ideas are ones that are stumbled upon seemingly by chance. The trick is to not waste good chances when they come along. Before you buy stock in Portillo's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Portillo's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy. This Undervalued Restaurant Stock Is Up About 10% Since a Member of the Audience Mistakenly Asked About It at Berkshire Hathaway's Annual Meeting was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
30-04-2025
- Business
- Associated Press
Berkshire Partners Managing Director Chris Hadley Named to GrowthCap's Top Healthcare Investors of 2025
BOSTON--(BUSINESS WIRE)--Apr 30, 2025-- Berkshire Partners is delighted to announce that Managing Director Chris Hadley has been named a Top Healthcare Investor of 2025 by GrowthCap. This recognition highlights Mr. Hadley's deep expertise in healthcare investing and his consistent delivery of strategic and operational insights to Berkshire's portfolio companies. Mr. Hadley has served as a pivotal member of Berkshire's team for over 26 years, earning a reputation as a respected and skilled professional. His ability to build strong relationships with portfolio company leadership is exemplified by his current board roles with Ensemble Health Partners, IVC Evidensia, Precision Medicine Group, U.S. Anesthesia Partners, and Vital Care Infusion Services. Previously, he was significantly involved with PurFoods and United BioSource. 'At Berkshire Partners, we are deeply committed to fostering strong and enduring relationships with founders, CEOs, and management teams throughout our partnerships,' noted Mr. Hadley. 'I have been fortunate to be a small part of a tremendous team and this recognition by GrowthCap is a direct reflection of the 'relationships matter' and 'team of teams' culture approach pursued by all at Berkshire.' Internally, Mr. Hadley serves as Chair of the Investment Committee and is a member of the Governance and Policy Committee. Beyond his corporate responsibilities, he is deeply committed to philanthropy, serving as Chairman of the Investment Committee for Dana-Farber Cancer Institute where he has served as a trustee for over a decade, among others. View source version on CONTACT: Greg Winter Berkshire Partners [email protected] KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS INDUSTRY KEYWORD: CONSULTING ASSET MANAGEMENT PROFESSIONAL SERVICES FINANCE SOURCE: Berkshire Partners Copyright Business Wire 2025. PUB: 04/30/2025 01:05 PM/DISC: 04/30/2025 01:06 PM
Business Wire
30-04-2025
- Business
- Business Wire
Berkshire Partners Managing Director Chris Hadley Named to GrowthCap's Top Healthcare Investors of 2025
BOSTON--(BUSINESS WIRE)--Berkshire Partners is delighted to announce that Managing Director Chris Hadley has been named a Top Healthcare Investor of 2025 by GrowthCap. This recognition highlights Mr. Hadley's deep expertise in healthcare investing and his consistent delivery of strategic and operational insights to Berkshire's portfolio companies. Mr. Hadley has served as a pivotal member of Berkshire's team for over 26 years, earning a reputation as a respected and skilled professional. His ability to build strong relationships with portfolio company leadership is exemplified by his current board roles with Ensemble Health Partners, IVC Evidensia, Precision Medicine Group, U.S. Anesthesia Partners, and Vital Care Infusion Services. Previously, he was significantly involved with PurFoods and United BioSource. 'At Berkshire Partners, we are deeply committed to fostering strong and enduring relationships with founders, CEOs, and management teams throughout our partnerships,' noted Mr. Hadley. 'I have been fortunate to be a small part of a tremendous team and this recognition by GrowthCap is a direct reflection of the 'relationships matter' and 'team of teams' culture approach pursued by all at Berkshire.' Internally, Mr. Hadley serves as Chair of the Investment Committee and is a member of the Governance and Policy Committee. Beyond his corporate responsibilities, he is deeply committed to philanthropy, serving as Chairman of the Investment Committee for Dana-Farber Cancer Institute where he has served as a trustee for over a decade, among others. About GrowthCap Founded in 2013, GrowthCap has provided private company CEOs with insight, exposure, and access to the private capital markets. GrowthCap's content is distributed to over 25,000 CEOs, senior executives, private equity investors, family offices and institutional limited partners. GrowthCap publishes and distributes content through its website, email newsletter, podcast, and social media. About Berkshire Partners Berkshire Partners is a 100% employee-owned, multi-sector specialist investor in private and public equity. The firm's private equity team invests in well-positioned, growing companies across business & consumer services, healthcare, industrials, and technology & communications. Berkshire is currently investing from its Fund XI, which held its final closing in 2024 with approximately $7.8 billion in commitments. Since inception, Berkshire Partners has made more than 150 private equity investments and has a strong history of collaborating with management teams to grow the companies in which it invests. The firm's public equity group, Stockbridge, founded in 2007, manages a concentrated portfolio seeking attractive long-term investments. For additional information, visit
