PTLO - Long-term upside tempered by short-term pressures for Portillo's - Morgan Stanley

Portillo’s (NASDAQ:PTLO) looks as though it will be a long-term winner in quick service restaurants, according to Morgan Stanley John Glass. He advised clients on Tuesday that Portillo’s has created “a brand like none other”, being able to court both a loyal, “fanatic” customer base and strong margins. Glass expects that as the company continues to expand into new markets at a judicious pace will also come to be appreciated by the market over time. Still, the acceleration towards these long-term goals is not expected to come quickly. Current macroeconomic conditions and the company’s small footprint at present limit upside in the next year, according to Glass.  “[Portillo’s is] a one-of-a-kind brand producing best in class sales volumes in the early innings of growth with plenty of expansion potential, but still early days for proving out brand portability,” he explained “Since its IPO, operating risks have increased, both with respect

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Long-term upside tempered by short-term pressures for Portillo’s - Morgan Stanley