Portillo’s Q4'24 Earnings: Revenue Growth & Expansion Plans
- Hardik Shah
- Feb 25
- 3 min read
TL;DR
Financial Performance: Total revenue for Q4 2024 was $184.6 million, with same-restaurant sales up 0.4% and net income rising to $12.4 million.
Operational Trends: Expansion into Texas and Georgia continues, with a new Portillo’s Perks loyalty program launching in 2025 to drive engagement.
Future Growth Drivers: Plans to open 12 new locations in 2025, introduce AI-powered drive-thru optimization, and improve operational efficiency.
Financial Results
Portillo’s, a leading fast-casual restaurant chain specializing in Chicago-style favorites, delivered a mixed Q4 2024 performance, balancing revenue growth with operational headwinds. Portillo's earnings:
Revenue: Q4 2024 revenue was $184.6 million, down 1.7% YoY, largely due to the extra week in Q4 2023. Excluding that, revenue grew 6.1% YoY.
Same-Restaurant Sales: Increased 0.4% in Q4 but saw a full-year decline of 0.6%, reflecting broader industry headwinds.
Net Income: $12.4 million, a $2.8 million increase YoY, supported by cost efficiencies and a reduction in interest expenses.
Adjusted EBITDA: Q4 2024 Adjusted EBITDA was $25.2 million, down 3.6% YoY, but grew 6.3% YoY when adjusting for the extra 2023 week.
CEO Michael Osanloo: “We carried solid traction into January, but industry headwinds, including weather in February, muted some of our early momentum.”.
2025 Outlook:
Revenue growth projection: 11-12%.
Same-restaurant sales expected to range between flat to +2%.
Commodity inflation forecast at 3-5%, with beef prices driving most of the increase.
12 new restaurant openings, focusing on Texas and Georgia.
Operational Performance
Industry & Market Trends
Weather challenges in February 2025 slowed early momentum.
Increased competition from QSR promotions impacted drive-thru traffic.
Inflationary pressures remain, but commodity costs are stabilizing.
Key Business Milestones
10 new locations opened in 2024, including the Restaurant of the Future (ROTF) model.
Drive-thru speed improvement initiative aims to cut 45 seconds off wait times, boosting throughput and revenue.
CEO Michael Osanloo: “Every 30 seconds of improved drive-thru throughput translates to 1% comp growth”.
Challenges & Risks
Labor inflation projected at 3-4% in 2025.
Commodity inflation pressures, particularly in beef pricing.
Competitive value-focused promotions from QSR rivals impacting traffic.
Strategic Initiatives
Expansion & Growth
12 new restaurants in 2025, including the first Georgia location.
Continued expansion in Texas, with more Restaurant of the Future (ROTF) models.
Exploring walk-up and airport locations in 2026.
Technology & Innovation
AI-powered drive-thru monitoring piloted to enhance speed & accuracy.
Portillo’s Perks loyalty program launching in March 2025 with a goal of 1.5 million members by July.
Streamlined menu in new locations, reducing SKUs by 15-20% to improve efficiency.
CEO Michael Osanloo: “The loyalty program will use a targeted marketing approach to drive behaviors based on guest habits and buying patterns.”.
Capital Allocation
Debt & Liquidity Management
Term loan reduced from $300M to $250M, with a 40 basis point reduction in interest rate.
Revolver credit facility increased from $100M to $150M to support growth.
Effective interest rate lowered from 8.4% to 7.5%.
The Bottom Line
Portillo’s Q4 2024 results highlight steady growth, strong expansion plans, and operational improvements. Despite industry headwinds, loyalty initiatives, AI-driven efficiencies, and new market expansions position the company for sustained long-term performance. With 12 new locations planned, strategic investments in technology, and a sharpened focus on operational efficiency, Portillo’s aims to deliver profitable growth in 2025. 🚀
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