PTLO - Why Portillo's Stock Dropped 14.8% This Week
2023-08-04 15:20:05 ET
Shares of restaurant chain Portillo's (NASDAQ: PTLO) fell as much as 14.8% in trading this week after reporting second-quarter 2023 financial results. Shares are down 13.9% for the week as of 2:30 p.m. ET on Friday.
The quarter wasn't all that bad, but it did miss lofty expectations in a few areas . Total revenue was up 12.3% to $169.2 million, and same-restaurant sales were up 5.9%. But operating income was flat at $17.4 million as higher food and labor costs ate into profits.
On the growth front, management expects to open another eight restaurants in the second half of the year, bringing the total to 84. But they did highlight in the conference call that openings in the Chicagoland area may eat into margins at existing stores.
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Why Portillo's Stock Dropped 14.8% This Week