Portillo’s (PTLO:NSD), the quick-service restaurant operator, reported its fourth-quarter earnings on Tuesday, which exceeded analysts’ expectations. While the revenue of $150.9 million showed an 8.6% increase from the same period last year, it missed the expected figure by $4.4 million. However, the EPS of $0.08 was an outstanding $0.06 above the estimates.
During the quarter, Portillo’s experienced a 6% rise in same-restaurant sales, while the restaurant-level adjusted EBITDA reached $32 million. The company attributes its growth to new restaurant openings and operational efficiencies.
While commodity inflation and higher labor costs have led to increased expenses, Portillo’s has implemented price increases and operational improvements to counteract the impact. Looking ahead, the company anticipates opening 13 new restaurants in fiscal 2023, with general and administrative expenses ranging from $72 million to $77 million, and capital expenditures ranging from $70 million to $75 million.
Despite missing the revenue target, Wall Street analysts have a consensus price target of $22.67 on PTLO stock, indicating a potential upside of 17.75% in the stock. After a nearly 35.27% surge in the share price so far this year, investors seem to be optimistic about the company’s future prospects.
