I have been reading about the travails of Portillo’s recently. They have a perceived pricing issue.
I am not alone in thinking this! Many fans find Portillo’s pricey, with full combo meals often costing between $13 to $18.
Portillo’s IPO occurred in October of 2021 and the stock has taken a beating since.
The new CEO has a casual sit-down restaurant background, but is learning the culture and brand values. Believing that If Portillo’s executes, he believes the brand will generate year-over-year same-store sales growth and improved store-level profitability. Portillo’s posted operating income of $4.5 million in Q1, down $5.9 million from the previous year, and swung a net loss of $500,000, a decrease of $4.5 million from net income of $4 million.
This with the increased prices.
I think the stock is at a low point and I picked up some shares in my play account. I spent less on a stock share than I would have on a meal…