Operations
Portillo's net income plunges 91% in Q3 amid slowdown in same-store sales
Portillo's lowered its same-restaurant sales forecast for the full fiscal year to a decline of between 1% and 1.5%, down from previous guidance
November 4, 2025
Portillo's Inc., a chain known for its Chicago-style fare, reported a sharp decline in third-quarter profit and a slowdown in its core restaurant performance as the company pursues a more measured growth strategy, according to a company press release.
The company's net income for the quarter ended Sept. 28, 2025, plummeted 91.1% to $0.8 million, down from $8.8 million in the same period last year. Operating income for the quarter also decreased by 66% to $5.4 million.
"Portillo's took a number of steps to reset our growth model in the third quarter, as we proceed at a more measured pace in new markets while pursuing better unit economics," Mike Miles, chairman of the Board and interim president and CEO, said in a company press release.
Financial highlights (Q3 2025 vs. Q3 2024):
- Total revenue: $181.4 million, an increase of 1.8%
- Same-restaurant sales: Decrease of 0.8%
- Net income: $0.8 million, a decrease of 91.1%
- The 0.8% decline in same-restaurant sales was attributed to a 2.2% drop in guest transactions, which offset a 1.4% increase in the average check size (driven by higher menu prices).
- The overall revenue increase of 1.8% to $181.4 million was primarily due to the opening of 12 new restaurants since the third quarter of 2024.
Miles said the restaurant operators "continue to deliver outstanding food and guest experiences, and they remain the foundation of this great brand."
The decline in operating income was driven by higher operating expenses, including a 6.3% rise in commodity prices for food, beverage, and packaging. General and administrative expenses also rose 9.4%, partly due to $3.3 million in "dead site costs" related to abandoned development locations and $2.2 million in trade name impairment charges related to the legacy Barnelli's concept.
Despite the headwinds, the company affirmed its strategic focus on expansion, updating its fiscal 2025 financial targets to include the opening of a total of eight new restaurants for the year. This includes the four restaurants opened in the third quarter, such as its first in-line format location in Middleton, Florida, and the planned opening of its first Georgia location in the fourth quarter.
Portillo's,which opened its 100th unit last month, also lowered its same-restaurant sales forecast for the full fiscal year to a decline of between 1% and 1.5%, down from previous guidance. The new annual revenue target is between $730 million and $733 million.
