PTLO - Portillo's promotes price increases amid unprecedented commodity inflation

Portillo’s (NASDAQ:PTLO) largely positive earnings results on Thursday were tempered by talk of “unprecedented commodity inflation.” The Oak Brook, Illinois-based restaurant chain reported stronger than expected profitability, staving off a negative EPS figure expected by analysts. The stronger than expected bottom line figure was buttressed by a 14.6% jump in revenue from 2021 to $134.5 million, led by a surge in same store sales. “Even in the face of cost pressures, Portillo’s continues to have enviable profitability that provides financial flexibility, keeps our development pipeline on track, and supports our longer-term growth strategy,” CEO Michael Osanloo concluded.  Among those cost pressures were soaring meat prices. “We also experienced unprecedented commodity inflation, with the highest impact in pork, chicken and beef prices,” the release reads. “Additionally, we experienced higher labor expenses during the first quarter of 2022 versus the first quarter of 2021 and anticipate additional wage investments in fiscal 2022.”

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Portillo’s promotes price increases amid “unprecedented commodity inflation”