Portillo’s (NASDAQ:PTLO) announced on Wednesday that it will begin a strategic reset of its development and growth plans to sharpen focus on its core markets and enhance unit economics. The aim is to position the company for sustained success.
CEO Michael Osanloo said top priorities include driving sustainable traffic through consistent service and value and executing disciplined development with restaurants designed for strong unit economics, attractive four-wall returns, and efficient capital deployment that will fuel long-term growth.
Osanloo said Portillo’s (NASDAQ:PTLO) will strive to drive transactions by reinforcing value and service, simplify operations including the discontinuation of the Chicago breakfast pilot, and sharpen its focus with a more measured pace of new restaurant growth. Another goal is to optimize capital deployment to position Portillo’s (PTLO) for positive free cash flow in 2026.
“We are confident in our strategy and our ability to execute. Our team remains fully committed to creating long-term shareholder value while delivering a one-of-a-kind experience for both new and loyal Portillo’s guests,” highlighted Osanloo.
Portillo’s (PTLO) also issued fresh guidance. The restaurant company now sees full-year same-store sales growth of -1.5% to -1.0% vs. a prior outlook for +1% to +3%. The unit growth forecast was dialed back to 8 new units for the fiscal year from a prior target of 12 new units. Portillo’s (PTLO) cited an anticipated decline of current trends for the remainder of 2025 due to pricing and promotional dynamics within the industry. Of course, McDonald’s (MCD) has cast a big shadow in the restaurant industry with a renewed focus on value menu offerings that has impacted direct and indirect restaurant sector competitors.
Shares of Portillo’s (PTLO) were down 4.7% in premarket action on Wednesday.