Portillo's aims for $90M–$94M adjusted EBITDA in 2025 while revising growth strategy and reducing new openings.

Management Insights: Portillo's Interim CEO Michael Miles expressed renewed confidence in the company's growth potential, emphasizing a strategic reset with slowed development plans for 2025 and 2026, focusing on existing leases and smaller restaurant formats.

Financial Performance: The company reported Q3 revenues of $181.4 million, a slight increase from the previous year, but same-restaurant sales declined by 0.8%, leading to a decrease in restaurant-level adjusted EBITDA margins from 23.5% to 20.2%.

Cost Pressures: CFO Michelle Hook highlighted ongoing challenges from commodity and labor inflation, particularly with beef costs, forecasting a 3% to 5% increase in commodity prices for 2025 and a 3% to 4% rise in labor costs.

Analyst Sentiment: Analysts displayed a neutral to slightly negative tone, raising concerns about marketing effectiveness, declining traffic, and the company's ability to manage costs and drive growth, reflecting a shift from a proactive growth strategy to a more cautious approach.