Shares of quick service restaurant operator Portillo’s (NASDAQ:PTLO) are rising today after its fourth-quarter bottom line came in ahead of expectations.
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Revenue rose 8.6% year-over-year to $150.9 million but missed the cut by $4.4 million. EPS at $0.08, on the other hand, flew past estimates by a whopping $0.06. During the quarter, while same-restaurant sales rose by 6%, restaurant-level adjusted EBITDA came in at $32 million.
The company continues to see growth on the back of new restaurant openings coupled with same-restaurant sales growth. While commodity inflation and higher labor costs have meant rising expenses, PTLO has also undertaken price increases as well as measures to improve operational efficiencies.
Looking ahead, for fiscal 2023, the company anticipates 13 new restaurant openings and general and administrative expenses in the range of $72 million and $77 million. Capital expenditures are seen ranging between $70 million and $75 million.
Overall, Wall Street has a consensus price target of $26.33 on PTLO, implying a 17.75% potential upside in the stock. That’s after a nearly 35.27% rise in the share price so far this year.
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