Portillo's Inc. reported a total revenue of $181.4 million for the quarter ended September 28, 2025, reflecting a 1.8% increase from $178.3 million in the same quarter of the previous year. However, the company experienced a decline in net income, which fell to $0.8 million from $8.8 million year-over-year. The decrease in profitability was attributed to a significant drop in operating income, which decreased by $10.6 million to $5.4 million, alongside a decline in same-restaurant sales by 0.8%. For the three quarters ended September 28, 2025, total revenue increased by 3.9% to $546.3 million, but net income also decreased to $14.8 million from $22.6 million in the prior year.
The filing highlighted several strategic developments, including a reset of the company's growth plans announced on September 10, 2025, aimed at enhancing unit economics and focusing on core markets. This strategic shift comes alongside the departure of CEO Michael Osanloo, with Mike Miles appointed as interim CEO. The company plans to open three additional restaurants in the fourth quarter, bringing the total to eight new openings for fiscal 2025, including its first location in Georgia.
Operationally, Portillo's operated 98 restaurants across ten states as of September 28, 2025, with plans for further expansion. The company reported a 6.3% increase in commodity inflation for the quarter, which impacted food, beverage, and packaging costs, contributing to a rise in total operating expenses. Labor costs also increased due to wage rate hikes and higher benefit costs, reflecting the challenges of an increasingly competitive labor market.
Looking ahead, Portillo's anticipates that cash flows from operations will be sufficient to meet its liquidity needs for the foreseeable future. The company maintains a cash balance of $17.2 million and has $68.6 million available under its 2025 Revolver Facility. Despite the challenges faced in the current fiscal year, including declining same-restaurant sales and increased operational costs, Portillo's is focused on optimizing capital deployment and positioning itself for positive free cash flow in 2026.
About Portillo's Inc.
Portillo's Inc. operates fast-casual restaurants specializing in iconic Chicago-style hot dogs, Italian beef, burgers, salads, and desserts. With a focus on high-energy, themed environments and multichannel sales—including dine-in, drive-thru, delivery, and catering—it emphasizes operational excellence, menu innovation, and a strong team culture. Serving a broad customer base across the U.S., it aims for rapid national expansion and industry-leading guest experiences.
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