Portillo’s reported higher third-quarter revenue, same-restaurant sales, net income and adjusted EBITDA, and raised its full-year 2026 adjusted EBITDA outlook. The company also outlined a plan to focus on restaurant execution, marketing and disciplined growth, alongside plans to close a mid-to-high single-digit number of underperforming restaurants outside Chicagoland.
Most of the closures are expected in the fourth quarter of 2026. Portillo’s expects material cash and non-cash charges from the exits, but has not yet estimated their total cost.
Key details
- Third-quarter results improved year over year: Revenue was $194.1 million, up 7.0%, or $12.6 million. Same-restaurant sales rose 1.4%.
- Profit measures increased: Net income was $4.8 million, up $4.0 million from a year earlier. Adjusted EBITDA was $26.5 million, an increase of $5.1 million.
- Full-year outlook was raised: Portillo’s increased its 2026 adjusted EBITDA guidance. The announcement details provided no revised target.
- The strategic plan centers on operations and disciplined growth: CEO Brett Patterson said the company plans to focus on running strong restaurants, using integrated marketing and pursuing development selectively. A financial framework is intended to guide decisions and reinforce accountability.
- Some locations will close: After evaluating restaurant sales, restaurant-level margins and projected performance, the board approved closures of a mid-to-high single-digit number of underperforming restaurants outside Chicagoland. Most are expected to occur in the fourth quarter of 2026.
- Closure costs remain undetermined: Expected charges include lease-related costs, employee separation costs, asset impairments and other exit expenses. The company expects most of the material cash and non-cash charges to be recognized in the fourth quarter, but has not yet estimated the total or the amounts by category.
What changes
The closures are intended to improve the quality and profitability of Portillo’s restaurant portfolio and strengthen returns on invested capital. The plan also puts greater emphasis on disciplined development rather than growth for its own sake. Management said the quarter’s results were ahead of expectations, while cautioning that one quarter does not establish a trend.