PTLO Performance
PTLO's first earnings report since the IPO was mixed. Total revenue was up 15.3% to $138.0M. Same-restaurant sales increased 6.8% during the quarter of an increase in average check of 7.9%, partially offset by a decline in traffic. Operating income decreased 8.8% to $17.2M amid ongoing labor and commodity challenges that have faced the industry. Adjusted EBITDA fell 8.4% to $24.2M. Portillo says its expansion plan will utilize a two-pronged strategy by aiming to expand the presence in its core market across the Midwest as well as targeting major national markets for opportunistic growth.
Black Box (week ending November 7, 2021)
Following the Haloween slowdown, restaurant sales have improved. According to Blackbox "Sales growth for the week was 0.6% stronger than the average for the previous 6 weeks. Average guest check continues to accelerate and remains a concern for ongoing traffic recovery. Guest year-over-year growth was at its highest since mid-April. Not surprisingly, customers say a discount or deal would make them more likely to eat out. Family dining, fast-casual and fine dining experienced the largest year-over-year growth in their average checks during the week (as well as over the last 3 weeks). 46 states posted positive sales growth during the week. The only states with negative sales growth were Oregon, Wisconsin, Hawaii, and North Dakota. The best performing regions of the country based on sales growth were the Southeast, Southwest, Florida, and Texas. The weakest sales growth regions were California, New York-New Jersey, New England, and the Midwest.
Commodity Prices & Outlook (Hedgeye Macro)
