Portillo’s Shares Gain Nearly 29% on Day of Results, Strategy Plan

Portillo’s shares gained nearly 29% Thursday, Nov. 5, on the day the restaurant chain posted higher third-quarter revenue and net income and unveiled a plan that includes restaurant closures.

For the quarter ended Sept. 27, 2026, revenue climbed 7% from a year earlier to $194.1 million, compared with $181.4 million. Net income rose to $4.8 million from $0.8 million. Same-restaurant sales increased 1.4%, with the average check up 2.1% and transactions down 0.7%. Restaurants outside the comparable base contributed $10.3 million of the $12.6 million year-over-year revenue increase. Portillo’s published its results at 8 a.m. ET (13:00 UTC) Thursday.

Portillo’s lifted its fiscal 2026 adjusted EBITDA outlook to $98 million to $101 million from $92 million to $96 million. It set a revenue target of $768 million to $773 million and kept its plan to open eight restaurants. Adjusted EBITDA is an earnings measure adjusted for interest, taxes, depreciation and amortization, along with other specified items. Portillo’s said it could not reconcile the forward range with generally accepted accounting principles measures.

The strategy centers on restaurant operations, integrated marketing and disciplined development. Portillo’s described financial rigor and discipline as support for those priorities. It also set a target of annual same-restaurant sales growth of 2% to 3% and plans to raise new-restaurant growth to a high-single-digit percentage over the next three years.

The company’s 2028 design concept would use about 4,600 square feet, more than 40% less space than its previous average restaurant. The proposed site would cover roughly 1.5 acres, compared with a historical average of 3 acres. Portillo’s targets cash-on-cash returns above 20% for new restaurants beginning in 2028.

The latest same-restaurant sales increase followed a 1.2% decline in the second quarter. CEO Brett Patterson cautioned against reading too much into one quarter, saying, “While we are encouraged by the progress, one quarter does not establish a trend.”

Portillo’s board approved the closure plan Wednesday, Nov. 4. It covers a mid-to-high single-digit number of underperforming restaurants outside Chicagoland, with most closures expected in fiscal fourth-quarter 2026. The company expects material cash and non-cash charges but has not estimated the total or amounts by type.