Earnings PerformancePortillo’s second-quarter revenue growth of 4% was below expectations for a 7% to 8% increase, with weaker-than-expected new unit productivity accounting for roughly two-thirds of the sales shortfall.
Geographic ChallengesLocations in Texas are lagging expectations, with continued underperformance in Houston and rapid densification of Dallas translating to lower average unit volumes.
Guidance And ExpectationsPortillo’s provided a third-quarter business update and lowered expectations for the full year, with comps for the third quarter expected to decline 2.0% to 2.5%, below consensus estimates for a gain of roughly 1%.