Latest news with #Portillo'sInc
Yahoo
17-04-2025
- Business
- Yahoo
Portillo's Inc. (PTLO): A Bull Case Theory
We came across a bullish thesis on Portillo's Inc. (PTLO) on Substack by Andrew Wagner. In this article, we will summarize the bulls' thesis on PTLO. Portillo's Inc. (PTLO)'s share was trading at $11.84 as of April 16th. PTLO's trailing and forward P/E were 25.74 and 28.17 respectively according to Yahoo Finance. Copyright: bhofack2 / 123RF Stock Photo Portillo's (PTLO), the iconic fast-casual chain best known for its 'Chicago-style' offerings, has become interesting following a steep 80% decline from its post-IPO highs. Founded in 1963 as a humble hot dog stand near Chicago, the brand has grown into a beloved regional staple with 94 locations across 10 states—though more than half are still in Illinois. The company isn't selling discount or health-conscious food, but instead leans into a strategy of high-quality, abundant portions at fair prices. The experience is part of the product, and with recent shifts in strategy, the next chapter for Portillo's may look vastly different than its past. Activist investor Engaged Capital entered the scene in 2024 with a roughly 10% stake, catalyzing what appears to be a pivotal transformation for the business. Engaged has pushed for smarter restaurant builds and a more efficient operating model, including a switch from buying land to leasing it, which drastically reduces upfront capital needs. This shift complements management's prior decision to transition from large, inefficient restaurants to smaller, more scalable formats—unlocking operating leverage and supporting a faster, more sustainable expansion strategy. That expansion is already underway. While Portillo's long-term goal is to reach over 900 restaurants in the next 20 years, the near-term strategy is focused on 'follow the customer.' This means building in markets where demand is already evident through its national 'Shop & Ship' program. Texas, which leads in these mail-order metrics, is a key target, with 75% of new openings this year set in the state. Portillo's is building out clusters in Sunbelt regions, aiming to build brand awareness and operational efficiency quickly. With smaller locations, drive-through-only formats, and an evolving menu for new markets, the company is maximizing throughput while tailoring the experience. Operational tweaks don't stop there. Recent and planned initiatives include a simplified menu, faster drive-through service, self-ordering kiosks, and a loyalty program to retain and grow the customer base. These changes help to address the brand's biggest challenge—scaling outside of Chicagoland while maintaining the magic that made it iconic. Management projects annual unit growth of 12% to 15%, which may seem modest compared to hyper-growth tech, but is prudent given the company's balance sheet and the capital intensity of restaurant builds. Financial performance is showing signs of strength despite macro headwinds. In 2024, company-wide cash flow from operations surged nearly 40%, thanks to a combination of solid same-store sales and new unit openings. This stands in contrast to an industry grappling with inconsistent performance, inflationary pressures, and recession fears. Portillo's is not immune—wage and input costs are rising, and a downturn could slow development—but its model has shown resilience. Still, expansion comes with risks. The Chicago-area locations generate sales roughly double those in other markets, a level unlikely to be matched as the company scales. That means national expansion won't be a carbon copy of its Illinois operations. Sales volumes in the Sunbelt should resemble current non-Chicagoland stores, and Portillo's will need to keep expectations measured as it grows. What makes the investment case compelling now is the combination of a powerful brand and a roadmap for operational transformation. The involvement of Engaged Capital is a significant signal; activist interest rarely emerges without a credible path to unlocking value. The recent addition of Chipotle's President and Chief Strategy Officer to Portillo's board underscores this shift, suggesting future changes will be driven by experienced hands. More board reshuffling is expected, aligning leadership with the company's long-term growth ambitions. Portillo's isn't the fastest grower or the strongest operator today, but that's not the point. The investment thesis hinges on an evolving narrative: a beloved but regionally constrained brand refining its operations, led by an activist-driven strategy and a reconstituted board. Historical performance, while helpful context, doesn't reflect the direction the company is heading. If management executes, Portillo's has the potential to become a national powerhouse. Portillo's Inc. (PTLO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held PTLO at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of PTLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PTLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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Yahoo
16-04-2025
- Business
- Yahoo
Portillo's Inc.'s (PTLO) Momentum Turned in Q1
Middle Coast Investing, an investment advisor firm, released its first-quarter investor letter. A copy of the letter can be downloaded here. Middle Coast Investing had a difficult but manageable first quarter, but everyone has suffered since the Liberation Day crash at the beginning of the second quarter. To manage the volatility, the firm decided to increase cash goal levels by roughly 5% for each portfolio. In the quarter, the firm sold 3% more than it bought. In Q1 2025, the US Portfolios returned -3.7% compared to -4.6% for the S&P 500. It's Core U.S. portfolios returned -0.7% while Russell 2000 returned -9.8%, S&P 600 returned -9.3% and Nasdaq generated -10.4% for the same period. However, its European Portfolios appreciated by 9.2%. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first quarter 2025 investor letter, Middle Coast Investing emphasized stocks such as Portillo's Inc. (NASDAQ:PTLO). Portillo's Inc. (NASDAQ:PTLO) is a US-based restaurants operator. The one-month return of Portillo's Inc. (NASDAQ:PTLO) was -3.21%, and its shares lost 0.33% of their value over the last 52 weeks. On April 15, 2025, Portillo's Inc. (NASDAQ:PTLO) stock closed at $12.08 per share with a market capitalization of $771.546 million. Middle Coast Investing stated the following regarding Portillo's Inc. (NASDAQ:PTLO) in its Q1 2025 investor letter: "Portillo's Inc. (NASDAQ:PTLO) became a big position for us last quarter as the stock plummeted for no clear reason. Sometimes momentum dictates; that momentum turned in Q1. The company announced better than expected results for Q4 and guidance for 2025, and is making progress on its restaurant of the future models. The turnaround in the stock price may have again got ahead of itself, and we sold shares in the $14 range. But the food itself is a reasonably good value, and I hope demand holds up even as we hit a recessionary environment." A customer biting into a freshly prepared char-grilled burger, with crinkle-cut French fries and a chopped salad in the background. Portillo's Inc. (NASDAQ:PTLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Portillo's Inc. (NASDAQ:PTLO) at the end of the fourth quarter which was 12 in the previous quarter. Portillo's Inc. (NASDAQ:PTLO) generated $184.6 million in revenues in the fourth quarter, representing a decrease of 1.7% compared to Q4 2023. While we acknowledge the potential of Portillo's Inc. (NASDAQ:PTLO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Portillo's Inc. (NASDAQ:PTLO) in another article, where we shared the list of restaurant stocks to buy under $20. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Why Portillo's Inc. (PTLO) Is Among the Top Restaurant Stocks to Buy Under $20
We recently published a list of . In this article, we are going to take a look at where Portillo's Inc. (NASDAQ:PTLO) stands against other top restaurant stocks to buy under $20. Restaurant stocks are showing volatility amid Trump's tariff impositions across various sectors. On April 7, CNBC reported that while US stocks are tumbling due to the effects of high tariffs on the import of goods from key trading partners, analysts do not anticipate the tariffs to hit most restaurant stocks directly. However, inflation is expected to follow behind, fueled by expert and investor fear of an impending recession. This may put pressure on the spending capacity of consumers, resulting in an economic downturn. CNBC reported that UBS analyst Dennis Geiger said the following in a note to clients: 'We view the direct cost impact of tariffs on restaurants as manageable, with a focus on select commodity costs, but see the bigger risk as incremental pressure on consumer spending and industry demand.' CNBC also reported that investor concerns affected restaurant stocks across all sectors. Fast food restaurant chains have historically shown the most resilience during recessions, as consumers looking for cheap dining options typically level down from fast-casual or full-service diners and eateries to fast food options. However, the drop in consumer spending witnessed last year saw fast food restaurants hit hard, as low-income consumers cut their spending to this sector, visiting them less frequently. High-income consumers, on the other hand, continued with their usual dining habits, creating a gap that negatively affected fast food companies. Quick-service restaurants thus underwent same-store sales declines. On March 8, Mario Carbone, Major Food Group chef and co-founder, appeared on CNBC's 'Power Lunch' to discuss the effects of Trump's tariffs on the food industry and how high-end consumers are behaving in the sector. Talking about New York, he said that the numbers are booming, going above their pre-Covid benchmarks. New York is thus telling us that everything is good, and there is no fear right now in dining in the luxury sector. Stats are up, and restaurants are packed, with consumer energy through the roof. As of right now, there are no signs of slowing at all if one evaluates the spending and trends in restaurant reports. However, Carbone said that inflation hits the food and restaurant industry just like everyone else. The luxury food sector is responsible to the customer for bringing in the best ingredients for every meal, which is why it has no choice but to pass the effects on to the consumer in case such trends materialize. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 restaurant stocks under $20 as of April 13, 2025, and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A customer biting into a freshly prepared char-grilled burger, with crinkle-cut French fries and a chopped salad in the background. Share Price: $12.00 Number of Hedge Fund Holders: 22 Portillo's Inc. (NASDAQ:PTLO) is a fast-casual restaurant company that serves Chicago Street food in multichannel restaurants. The company reported a total revenue of $184.6 million for fiscal Q4 2024, while full-year revenue was $710.6 million. Restaurant-level adjusted EBITDA for fiscal Q4 2024 was $45.2 million and $168.1 million for the full year, with a margin of 23.7%. The addition of kiosks at all of the company's restaurants supported top-line momentum in the quarter, driving a comp lift of more than 1% through the mix. Management is continuing to explore the role of the kiosks in its business. Portillo's Inc. (NASDAQ:PTLO) is also continuing to expand its operations and plans to open 12 new restaurants in 2025. This includes its first restaurant in Georgia, while most of the rest will be in Texas. A majority of the openings will be concentrated in the year's second half, and its strong pipeline is expected to lead to a more balanced 2026. Stifel Nicolaus analyst Chris O'Cull maintained a Buy rating on Portillo's Inc. (NASDAQ:PTLO) on March 3 and set a price target of $17.00. White Brook Capital Partners stated the following regarding Portillo's Inc. (NASDAQ:PTLO) in its Q4 2024 investor : 'Portillo's Inc. (NASDAQ:PTLO) is up over 20% so far this year. On January 14, the Company preliminarily announced same store sales growth and gave supportive guidance for 2025 driving much of that stock improvement. But the even more important news should have been picked up during 2024, and was simply overlooked. During the third quarter, they announced they would explore financing the building for their new stores, rather than leasing the ground, but financing the building themselves. The move meant that the company can grow more quickly while also allowing for free cash flow after growth investments to begin to flow to the bottom line. This is exactly the scenario outlined in my bull case write-up last year. We were obviously too early in establishing our position in 2024, but this is the setup that we outlined in our thesis, and one that, as they execute, should prove lucrative.' Overall, PTLO ranks 5th on our list of the top restaurant stocks to buy under $20. While we acknowledge the potential for PTLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PTLO but trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Portillo's Inc. to Announce First Quarter 2025 Results on Tuesday, May 6, 2025
OAK BROOK, Ill., April 08, 2025 (GLOBE NEWSWIRE) -- Portillo's Inc. ('Portillo's') (Nasdaq: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced that it will report first quarter 2025 financial results on Tuesday, May 6, 2025, before the market opens. A live audio webcast is scheduled for 10:00 AM ET that same day. Michael Osanloo, President and Chief Executive Officer, and Michelle Hook, Chief Financial Officer, will host the webcast. The webcast will be available on the Company's investor relations website at and a replay will be available on the site shortly after the conclusion of the event. Investors may also listen via telephone by dialing 1 (877) 407-3982 (toll-free) or 1 (201) 493-6780 (international). A telephone replay will be available shortly after the call concludes and can be accessed by dialing 1 (412) 317-6671; the passcode is 13748476. About Portillo's In 1963, Dick Portillo invested $1,100 into a small trailer to open the first Portillo's hot dog stand in Villa Park, IL, which he called 'The Dog House.' Years later, Portillo's (NASDAQ: PTLO) has grown into a beloved brand with more than 90 restaurants across 10 states. Known for its iconic Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and famous chocolate cake, Portillo's food is iconic every time. Guests can join Portillo's Perks, the brand's loyalty program, at 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. Investor Contact:Investors@ Media Contact:ICR,
Yahoo
05-02-2025
- Business
- Yahoo
Portillo's Inc. to Announce Fourth Quarter 2024 Results on Tuesday, February 25, 2025
OAK BROOK, Ill., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Portillo's Inc. ('Portillo's') (Nasdaq: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced that it will report fourth quarter 2024 financial results on Tuesday, February 25, 2025, before the market opens. A live audio webcast is scheduled for 10:00 AM ET that same day. Michael Osanloo, President and Chief Executive Officer, and Michelle Hook, Chief Financial Officer, will host the webcast. The webcast will be available on the company's investor relations website at and a replay will be available on the site shortly after the conclusion of the event. Investors may also listen via telephone by dialing 1 (877) 407-3982 (toll-free) or 1 (201) 493-6780 (international). A telephone replay will be available shortly after the call concludes and can be accessed by dialing 1 (412) 317-6671; the passcode is 13741636. About Portillo's In 1963, Dick Portillo invested $1,100 into a small trailer to open the first Portillo's hot dog stand in Villa Park, IL, which he called 'The Dog House.' Years later, Portillo's (NASDAQ: PTLO) has grown to more than 90 restaurants across 10 states. Portillo's is best known for its Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads and famous chocolate cake. 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. Portillo's also ships food to all 50 states via its website. Investor Contact:Investors@ Media Contact:ICR, in to access your portfolio
