From Nation's Restaurant News · · 1m 30s
Portillo's to close 5-9 restaurants outside Chicago
Portillo's plans to shutter 5-9 underperforming restaurants outside Chicago to strengthen fundamentals.
In brief
Portillo's plans to shutter 5-9 underperforming restaurants outside Chicago to strengthen fundamentals. Portillo's will close 5-9 restaurants outside Chicago to improve performance after reporting 1.4% same-store sales growth. Originally reported by Nation's Restaurant News.
Portillo's closure plan
Portillo's plans to close a mid- to high-single digit number of underperforming restaurants outside Chicago.
Q3 sales performance
Portillo's reported a 1.4% same-store sales increase for Q3 with a 2.1% rise in average check and 0.7% drop in transactions.
Updated financial guidance
Portillo's upgraded its annual EBITDA guidance to $98 million to $101 million from $92 million to $96 million.
CEO's statement
CEO Brett Patterson said Portillo's does not deliver the returns investors expected and must confront hard reality.
Strategic focus
Portillo's will close underperforming locations and take a more disciplined approach to growth outside Chicago.
Brand positioning issue
Patterson said Portillo's branded restaurants outside Chicago lacked clear identity and what they serve.
New strategy elements
Portillo's will train field managers, improve order accuracy, and modernize digital channels for Millennials.
New executive chef
Portillo's hired former Guzman y Gomez chef Chris Hansen to prioritize menu quality and innovation.
Recent restaurant openings
Portillo's opened seven Texas restaurants this year with one more scheduled in Chicago.
Future growth targets
Portillo's aims for 20% cash-on-cash returns by 2028 and 2-3% annual same-store sales growth.
In short
Portillo's will close 5-9 restaurants outside Chicago to improve performance after reporting 1.4% same-store sales growth.
