Total Revenue

-1.7% (from $187,858k in Q4 2023 to $184,609k in Q4 2024)

Total Revenue declined slightly despite past growth from new restaurant openings. The decrease suggests that factors such as reduced same-restaurant sales or increased competitive/market pressures may be weighing on overall sales performance. " "

Operating Income

-4.4% (from $14,467k in Q4 2023 to $13,833k in Q4 2024)

Operating Income dropped modestly, indicating that rising operating costs (e.g., higher food, labor, or occupancy expenses) may have eroded margins compared to the previous period, even as overall revenue challenges persisted. " "

Net Income

+60% (from $7,789k in Q4 2023 to $12,429k in Q4 2024)

Net Income surged nearly 60% despite lower revenue and operating income, driven primarily by improved management of non-operating expenses—most notably a significant drop in interest expense—and likely favorable adjustments (e.g., tax or non-controlling interest shifts) that boosted bottom-line profitability. " "

EPS – Basic

+28.6% (from $0.14 in Q4 2023 to $0.18 in Q4 2024)

Basic EPS increased by approximately 28.6% as the enhanced net income more than offset any potential dilution, reflecting improved underlying profitability compared to the previous quarter. " "

EPS – Diluted

+30.8% (from $0.13 in Q4 2023 to $0.17 in Q4 2024)

Diluted EPS rose by around 30.8% as the net income gains drove higher per-share returns, even with a possible increase in the weighted-average number of shares; this improvement aligns with the strong bottom-line performance seen in net income. " "

Interest Expense

-12.9% (from $6,931k in Q4 2023 to $6,033k in Q4 2024)

Interest Expense fell by roughly 12.9%, primarily due to lower effective interest rates and improved borrowing terms compared to Q4 2023, which helped mitigate the impact of external rate pressures and contributed substantially to the net income improvement. " "

Same-Store Sales Growth

FY 2025

approximately –1% " " "

0% to 2% " "

raised

Revenue Growth

FY 2025

no prior guidance

Driven by the opening of new restaurants and modest comp sales growth "

no prior guidance

New Restaurant Openings

FY 2025

no prior guidance

12 new restaurants "

no prior guidance

Commodity Inflation

FY 2025

mid‑single digits "

3% to 5% "

lowered

Labor Inflation

FY 2025

approximately 3% "

3% to 4% "

raised

Restaurant-Level Adjusted EBITDA Margins

FY 2025

23% to 24% "

22.5% to 23% "

lowered

General and Administrative Expenses

FY 2025

$78 million to $80 million "

$82 million to $84 million "

raised

Pre-Opening Expenses

FY 2025

no prior guidance

$11 million to $12 million "

no prior guidance

Restaurant of the Future prototypes

Introduced in Q1 as smaller, cost‐efficient formats with specific designs and savings targets ( " ); refined in Q2 with a 6,300 sq ft design and cost reductions ( " " ); further detailed in Q3 with prototype sizes around 6,200–6,250 sq ft ( " " )

Q4 discussions highlighted promising prototype performance and laid out plans for the upcoming “2.0 evolution” with further improvements and lower build costs ( " " " )

Consistent focus with an evolving narrative that emphasizes incremental efficiency and expanded format iterations.

2.0 evolution

Only briefly mentioned in Q3 as a future iteration alongside the prototypes ( " " ); not mentioned in Q1 or Q2

Q4 provides detailed plans for Restaurant of the Future 2.0 slated for 2026 to further drive operational efficiency ( " " )

Emerging focus with enhanced details, representing a shift from early mentions to a defined rollout plan.

New market expansion and development pipeline

Repeatedly referenced across Q1–Q3 with emphasis on Texas, the Sunbelt, and incremental growth in DFW and other regions ( " " in Q1; " " in Q2; " " in Q3)

Q4 emphasizes increased density in Texas (DFW with 7 restaurants) and detailed plans for Houston along with a robust 2025 pipeline ( " " " )

Consistent and optimistic growth with refined geographic targets and clearer pipeline execution.

Customer loyalty programs and engagement

Absent in Q1 and Q2; early-stage development noted in Q3 with hints of future announcements ( " " )

Q4 features a fully detailed rollout of the Portillo’s Perks loyalty program, including integration with digital wallets and targeted marketing strategies ( " " " )

A newly prioritized topic that has evolved from prototypical discussion to actionable customer engagement initiatives.

Operational efficiency and technology enhancements

Consistently discussed across all periods: Q1 highlighted drive-thru improvements and initial kiosk tests ( " " " ); Q2 detailed drive-thru speed gains, kiosk prototyping, and footprint optimization ( " " " " ); Q3 continued these themes with technology enhancements and smaller restaurant footprints ( " " " )

Q4 reiterates focus through expanded kiosk rollouts and continued footprint optimization to lower build costs while aiming for incremental operational improvements ( " " )

A steady strategic focus with continuous technological upgrades and efforts to improve overall operational throughput.

Traffic, transaction, and same-restaurant sales trends

Q1 witnessed noticeable declines (partly due to weather) and a cautious recovery toward the end ( " " ); Q2 showed slight improvements but still faced transaction declines ( " " " ); Q3 experienced modest negative comps with mixed performance ( " " " )

Q4 reported a 0.4% same-restaurant sales increase driven by a higher average check coupled with a 3.7% traffic decline, with expectations for later momentum ( " " " )

A persistently challenging area with mixed results—improvements in check size are offset by lower traffic—leading to cautious optimism for future recovery.

Commodity cost pressures and margin management

Q1: Inflation at 4.8% with explicit hedging of 60% of beef flats and pricing actions implemented ( " " " ); Q2: Peak commodity pressures at 6.9% with noticeable margin impacts ( " " ); Q3: Moderate unit cost increases (3.6%) managed by pricing adjustments with less hedging discussion ( " " )

Q4 saw lower commodity inflation at 1.8%, with 50% of beef costs locked in for 2025 and continued margin management via pricing and operational efficiencies ( " " )

Persistent cost pressures are being managed through hedging and pricing strategies, with indications of slightly easing pressures in the current period.

Advertising and marketing initiatives

Q1: Began modest digital and traditional advertising efforts with targeted campaigns and a “Mix It Up” initiative ( " " ); Q2: Introduced more aggressive campaigns tied to NFL season and core market activities ( " " ); Q3: Increased investment in Chicagoland and DFW advertising, with noted increases in spending and strategic positioning ( " " " )

Q4 described an integrated, multi-channel approach in markets like Dallas-Fort Worth, including outdoor and TV campaigns combined with loyalty program integration ( " " " )

An evolving emphasis with progressively larger investments and more sophisticated, market-specific tactics to drive trial and awareness.

Regulatory and permitting challenges

Q1 discussions noted delays in permitting timelines and an 18-month extended pipeline to manage “silly things” outside their control ( " )

Q4 reiterated permitting challenges with similar concerns about 18–30 month cycles, though overall confidence remains if prototypes perform well ( " " )

A recurring, ongoing challenge that continues to necessitate longer-term planning without significant changes in sentiment.

Weather-related operational impacts

Q1: Severe winter weather in the Midwest led to marked declines in transactions and same-store sales, with recovery observed later in the quarter ( " " " )

Q4: February weather dampened early momentum, though senior management maintained that it was a temporary, non-fundamental issue ( " " " )

An episodic, non-fundamental issue that has historically affected performance but is viewed as a temporary headwind rather than a structural concern.