For restaurants, a good rating can mean the difference between a busy night and a slow one. Restaurant stocks often benefit from that same kind of intervention. Just ask Portillo’s (NASDAQ:PTLO), who saw investors pile in and send share prices up after a Stifel Nicolaus analyst took a liking to its stock.
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The analyst in question is Chris O’Cull, who noted that Portillo’s recent decline in share price has opened up a new opportunity for investors to get in. This newly-minted entry point is attractive, and since the brand itself has excellent potential, it should reward those who take a chance. The fact that Portillo’s is opening up new locations, and doing so in solid markets, should further provide an impetus for growth.
Taking a look at Portillo’s recent earnings report shows that O’Call isn’t so far out of line. While revenue came in a bit shy of expectations, same-store sales were up 6%. If it hadn’t been for Winter Storm Elliot, reports noted, revenue would likely have finished out strong. And with nine new restaurants slated for opening in 2023—Portillo’s only opened four in 2022—the chances that Portillo’s can keep the streak going looks solid.
Meanwhile, the rest of Wall Street finds Portillo’s just as tasty. Analyst consensus calls Portillo’s stock a Strong Buy with an average price target of $28, implying 32.76% upside potential.
