Portillo's Inc. reported a solid performance for the quarter and three quarters ended September 29, 2024, with notable increases in revenue and net income compared to the previous fiscal period. For the third quarter, the company achieved revenues of $178.3 million, marking a 6.9% increase from $166.9 million in the same quarter of the prior year. Year-to-date revenues reached $525.9 million, also up 6.9% from $492.0 million for the three quarters ended September 24, 2023.
Despite the revenue growth, same-restaurant sales experienced a decline of 0.9% for both the quarter and the three quarters, contrasting with growth of 3.9% and 6.1% in the respective prior periods. This decrease was attributed to a 3.0% drop in transactions, partially offset by a 2.1% increase in average check, driven by a 4.6% rise in menu prices.
Operating income for the quarter rose to $16.0 million, up from $15.1 million, while net income increased to $8.8 million from $6.6 million. Net income attributable to Portillo's Inc. for the quarter was $7.2 million, compared to $4.4 million in the prior year. For the three quarters, net income attributable to Portillo's Inc. was $18.3 million, up from $10.6 million.
The company’s cash and cash equivalents, along with restricted cash, increased to $18.5 million as of September 29, 2024, from $10.4 million at the end of 2023. Total assets grew to $1.47 billion, while total liabilities rose to $993.8 million, resulting in total stockholders' equity attributable to Portillo's Inc. of $382.4 million.
Portillo's continued its expansion strategy, operating 88 restaurants as of September 29, 2024, up from 83 at the end of 2023. The company opened four new restaurants during the three quarters, with plans for five additional openings by December 2024. The company is also progressing on its "Restaurant of the Future" concept, with two locations expected to open in Texas by the end of 2024.
In terms of expenses, food, beverage, and packaging costs increased by 8.3% for the quarter, while labor expenses rose by 7.9%. General and administrative expenses decreased by 3.1% for the quarter, attributed to lower variable-based and equity compensation.
Portillo's is also navigating challenges related to union representation at its commissaries, with potential impacts on compensation and operations. The company has implemented a new ERP system aimed at enhancing operational efficiency, although it may lead to increased costs and operational difficulties.
About Portillo's Inc.
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