Stifel analyst Chris O’Cull downgraded Portillo’s (PTLO) to Hold from Buy with a $13 price target The company reported disappointing same-restaurant-sales and traffic performance, with EBITDA above the firm’s estimates due primarily to lower-than-expected G&A expense, the analyst tells investors in a research note. Stifel adds that it is not convinced that traffic performance will improve in 2025, barring an increase in overall consumer spending, also noting that Portillo’s appears reluctant to alter its value strategy. The longer the company goes with declining transactions, the harder and more expensive it will be to reverse the trend, the firm noted.
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