Portillo's Inc. (NASDAQ:PTLO) stock plummeted 5.10% in intraday trading on Wednesday, following the release of the company's fourth-quarter earnings report. The fast-casual restaurant chain reported mixed results, with some positive signs but also facing significant challenges and headwinds.
On the positive side, Portillo's reported a 0.4% increase in same-restaurant sales for the fourth quarter, driven by the successful implementation of kiosks across all restaurants. The company also plans to open 12 new restaurants in 2025, focusing on a more cost-effective "restaurant of the future" format. Additionally, Portillo's launched a new loyalty program, Portillo's Perks, aimed at driving traffic and engagement.
However, the company faced several negative factors that weighed on its performance. Total revenue for the fourth quarter decreased by 1.7% compared to the previous year, impacted by an additional operating week in 2023. Same-restaurant sales for the full year were down 0.6%, indicating challenges in maintaining consistent growth. Portillo's also cited industry headwinds, such as weather impacts and commodity inflation, particularly in beef, which is expected to pose a significant pressure in 2025.
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