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Portillo's (NASDAQ:PTLO) provided fresh guidance during its appearance at the ICR Conference in Orlando, Florida on Tuesday.
On the development front, the restaurant operator said it expects to add nine new units in 2024, with a slight tilt to adding more units in the back half of the year. Portillo's (PTLO) noted that about 80% of its pipeline is in the Sunbelt as it looks to grow out of its Midwestern roots. The company sees commodity costs rising 4% to 6% in 2024. PTLO also guided for general & administrative expenses of $85M to $87M for the year and pre-opening expenses of $8.0M to $9.0M. Capital expenditures for the year are expected to be $90M to $93M.
Portillo's (PTLO) also discussed its long-term growth algorithm, which is for 12% to 15% unit growth. Same restaurant sales are seen growing at a low single-digit rate, revenue growth in the mid teens rate is anticipated, adn adjusted EBITDA growth in the low teens is anticipated.
9 out of 11 sell-side firms covering Portillo's (PTLO) have a Buy-equivalent or higher rating on the stock, while Seeking Alpha analyst Taylor Dart was more cautious in his assessment in November.
Portillo's was founded in 1963 in Villa Park, Illinois and grew to become a Chicago-area favorite. In 2014, the company was sold to Berkshire Partners, which took it public in 2021. Berkshire Partners still hold more than 70% of the outstanding stock.
Shares of Portillo's (PTLO) fell 1.41% in early action on Tuesday. The restaurant stock is down about 36% over the last six months. Short interest on PTLO stands at about 8.8% of the total float.