Portillo's (NASDAQ:PTLO) Releases Earnings Results, Meets Expectations

Key Points

• Portillo's reported quarterly earnings of $0.12 per share, matching analysts' expectations, with a year-over-year revenue increase of 3.6%.
• The company's stocks traded down to $7.58, significantly below the 50-day moving average of $11.38, indicating ongoing volatility.
• Insider trading activity included the sale of 10,000,000 shares by Berkshire Partners, totaling $122.3 million, indicating potential strategic shifts in ownership.

Portillo's (NASDAQ:PTLO - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.12 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.12, Briefing.com reports. Portillo's had a net margin of 4.19% and a return on equity of 6.25%. The company had revenue of $188.46 million during the quarter, compared to the consensus estimate of $197.04 million. During the same quarter in the prior year, the firm posted $0.10 earnings per share. Portillo's's revenue for the quarter was up 3.6% on a year-over-year basis. Portillo's updated its FY 2025 guidance to EPS.

Portillo's Price Performance

Shares of PTLO stock traded down $0.30 during trading hours on Friday, hitting $7.42. The company's stock had a trading volume of 5,206,006 shares, compared to its average volume of 3,466,450. The business has a fifty day moving average of $11.02 and a 200-day moving average of $12.05. The stock has a market cap of $555.16 million, a price-to-earnings ratio of 16.49, a P/E/G ratio of 5.12 and a beta of 1.81. Portillo's has a twelve month low of $7.20 and a twelve month high of $15.78. The company has a current ratio of 0.29, a quick ratio of 0.21 and a debt-to-equity ratio of 0.49.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Wall Street Zen cut shares of Portillo's from a "hold" rating to a "sell" rating in a report on Saturday. William Blair reissued an "outperform" rating on shares of Portillo's in a report on Friday, May 30th. UBS Group cut their price target on shares of Portillo's from $12.00 to $9.00 and set a "neutral" rating for the company in a report on Wednesday. Piper Sandler dropped their target price on shares of Portillo's from $17.00 to $13.00 and set an "overweight" rating for the company in a report on Wednesday, May 7th. Finally, Robert W. Baird set a $8.00 target price on shares of Portillo's in a report on Tuesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, Portillo's presently has an average rating of "Hold" and an average target price of $12.50.

Insider Activity

In other news, Director Eugene I. Lee, Jr. bought 130,250 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were purchased at an average price of $7.68 per share, for a total transaction of $1,000,320.00. Following the completion of the transaction, the director owned 130,250 shares in the company, valued at $1,000,320. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Kelly M. Kaiser bought 27,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were purchased at an average price of $7.68 per share, for a total transaction of $207,360.00. Following the transaction, the general counsel owned 68,495 shares of the company's stock, valued at $526,041.60. The trade was a 65.07% increase in their position. The disclosure for this purchase can be found here. Insiders have bought a total of 197,250 shares of company stock worth $1,514,480 in the last three months. 6.14% of the stock is owned by insiders.

Hedge Funds Weigh In On Portillo's

Hedge funds have recently made changes to their positions in the business. Cetera Investment Advisers purchased a new stake in Portillo's during the 2nd quarter worth $145,000. AQR Capital Management LLC purchased a new stake in Portillo's during the 1st quarter worth $318,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Portillo's by 5.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,550 shares of the company's stock worth $387,000 after buying an additional 1,808 shares during the period. Finally, Royal Bank of Canada increased its stake in Portillo's by 731.1% during the 1st quarter. Royal Bank of Canada now owns 156,710 shares of the company's stock worth $1,864,000 after buying an additional 137,854 shares during the period. Hedge funds and other institutional investors own 98.34% of the company's stock.

About Portillo's

Portillo's Inc owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms.