Portillo’s (NASDAQ:PTLO) shares are trending nearly 15% higher today after the fast-casual restaurant operator delivered impressive numbers for the fourth quarter. Revenue jumped by 24.5% year-over-year to $187.9 million, exceeding estimates by $2.9 million. Moreover, EPS of $0.13 outpaced expectations by a wide margin of $0.07.
During the quarter, same-restaurant sales increased by 4.4%, and restaurant-level adjusted EBITDA improved by $13.7 million to $45.7 million. It also opened 12 new outlets in 2023, taking its total tally to 84 locations.
Portillo’s plans to open at least nine new locations in Fiscal Year 2024. The company aims to maintain an annual pace of 12% to 15% growth in new restaurant openings. Capital expenditures for the full year are anticipated in the range of $90 million to $93 million.
Over a longer timeframe, Portillo’s is aiming for revenue growth in the mid-teens and adjusted EBITDA growth in the low-teens.
Is PTLO a Good Buy?
Despite today’s price gains, Portillo’s share price still remains nearly 30% lower over the past year. Overall, the Street has a Moderate Buy consensus rating on Portillo’s alongside an average price target of $19. However, analysts’ views on the stock could see a revision following today’s earnings report.
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