Portillo's Inc. · NASDAQ:PTLO
Portillo's — Investor Day (September 2023)
87 slides from Portillo's's investor day presentation, Sep 19, 2023
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 1
Slide 2: Welcome
Welcome Barb Noverini | Head of IR | ad ee eae ae) |
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 323
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 423
Slide 5: Developing Shareholder Value
Developing Shareholder Value Michael Osanloo | CEO and President
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 623
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 723
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 823
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 923 38 41 46 52 57 62 64 69 72 84 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E (1) Includes C&O of whic
Slide 10: Evolution of Market Selection Strategy
EVOLUTION OF MARKET SELECTION STRATEGY Portillo's ALIGNED WITH MACRO DRIVERS OF SUCCESS SOSH HHSHHHHHH HH HEHHH HEHEHE HEHEHE HEHEHE HSS OOOH OOS SOOO ooeeooooe STRATEGY Chicagoland Brand affinity Brand awareness Brand awareness + population growth & density Current Focus @ New RESTAURANTS SINCE 201
Slide 11: Evolution of Market Selection Strategy
EVOLUTION OF MARKET SELECTION STRATEGY Portille’s ALIGNED WITH MACRO DRIVERS OF SUCCESS SHHHHHSHHHHHHHHHEHHHH HHH HHH SEH HHH SSE SHE HHH S ESSE SESE SHES ESOS ES OES OEOS 10-Year Population Growth Source: U.S. Census Bureau, Population Division Note: Population growth are estimates ent, in whole or
Slide 12: reserved | Do not share or 1223 Low High Shop ‘n Ship Orders
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 1223 Low High Shop ‘n Ship Orders
Slide 13: reserved | Do not share or 1323 Source: Public company filings Note: Shake Shack
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 1323 Source: Public company filings Note: Shake Shack figures approximate based on average weekly sales for domestic-company operated units
Slide 14: reserved | Do not share or 7.1.238.311 Source: Internal data, public company filings Note:
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 14 7.1.238.311 Source: Internal data, public company filings Note: Shake Shack figures approximate based on average weekly sales for domestic-company operated
Slide 15: Site Selection Matters for a Growth Concept
SITE SELECTION MATTERS FOR A GROWTH CONCEPT Portillo's BUILD IT WHERE YOU KNOW THEY WILL COME SHSHTSSHHHSHHHSHHHHESHHHHHHHHHSE HEH HSHH SESH S SHES ES SESOSSES SESS SSS SESH SO OS Chicagoland Non-Chicago Markets Chicago love! 1. Behind a mall $11.3 mil 1. Great co-tenancy $9.0 mil 2. Difficult to ac
Slide 16: Great Openings Matter for a Growth Concept
GREAT OPENINGS MATTER FOR A GROWTH CONCEPT Portillo's MATCHING CAPABILITY TO DEMAND SHH SHHHSHHSHHHHHHHEHHHHS HHH HHSSE SHES HHE SESE HHH SES SESH SESE SHES ESE SES EO OOS asa] & Portillo's NRO Playbook Happier guests & Accelerated experienced matches capability Team Members financial Managers with
Slide 17: Great Openings Matter for a Growth Concept
GREAT OPENINGS MATTER FOR A GROWTH CONCEPT Portillo's MATCHING CAPABILITY TO DEMAND SHH SHHHSHHSHHHHHHHEHHHHS HHH HHSSE SHES HHE SESE HHH SES SESH SESE SHES ESE SES EO OOS Q00 an Portillo's NRO Playbook ; " Happier guests & experienced => matches capability Ba Manbare => Aecelerates Managers with de
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 1823
Slide 19: Returns Matter for a Growth Concept
RETURNS MATTER FOR A GROWTH CONCEPT Portillo's OPTIMIZING THE SIZE OF THE BOX SHSHHSHHHSHHHHSHHHHHSHHHHHHHHEHSHE SH HSHH SHH HS HHESHESSESSSE SSE SOS OES ESOS OS NOW: Kitchen 23 11,300 square feet 7,700 square feet 5,500-6,000 square feet 105 foot production line 65 foot production line 47 foot prod
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 2023
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 2323
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 2423
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 2823
Slide 29: reserved | Do not share or 2923 ✓ ✓ ✓ ✓ ✓ ✓
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 2923 ✓ ✓ ✓ ✓ ✓ ✓
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3023
Slide 31: reserved | Do not share or 3123 • • • • • • •
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3123 • • • • • • • • • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3223
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3323
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3423
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3623
Slide 37: reserved | Do not share or 3723 • • • • • •
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3723 • • • • • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3823
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3923
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4023
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4123
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4223
Slide 43: reserved | Do not share or 4323 B u d g e te d
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4323 B u d g e te d ‘2 3 N o t a d ju s te d f o r p ri c in g 3 Cheese-Sauce First-In Markets Aggregate (2016 – 2017) • • • • 1 2 3 4 1 2 3 4 1 2 • • 1 2
Slide 44: Overall Satisfaction (OSAT) by Class since 2016
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4423 <50% OSAT 50-60% OSAT >60% OSAT Non-Chicagoland Overall Satisfaction (OSAT) by Class since 2016
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4523
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4623 • • • • • • • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4723
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4823
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 4923
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5023 • • •
Slide 51: reserved | Do not share or 5123 Note: All data based on a sample
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5123 Note: All data based on a sample of 5 restaurants with completed retrofits
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5223 • • • • • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5323
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5423 • • • • • • • • •
Slide 55: reserved | Do not share or 5523 Note: Numbers and ranges are rounded
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5523 Note: Numbers and ranges are rounded
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5623
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5723
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5823
Slide 59: reserved | Do not share or 5923 Note: U.S. Population is sourced from the
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 5923 Note: U.S. Population is sourced from the U.S. Census Bureau, Population Division
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6023
Slide 61: reserved | Do not share or 6123 Existing Portillo’s location Potential future location
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6123 Existing Portillo’s location Potential future location
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6223 • • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6323 • •
Slide 64: reserved | Do not share or 6423 • Only in MSAs with 6-8 or
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6423 • Only in MSAs with 6-8 or more full scale Portillo’s • In densest urban trade areas
Slide 65: reserved | Do not share or 6523 • Only in MSAs with 6-8 or
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6523 • Only in MSAs with 6-8 or more full scale Portillo’s • In densest urban trade areas
Slide 66: reserved | Do not share or 6623 Note: Pictures from Chick-Fil-A website, CNN business
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6623 Note: Pictures from Chick-Fil-A website, CNN business
Slide 67: reserved | Do not share or 6723 Restaurants Restaurants ~ Restaurants Note: 77 full-scale
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6723 Restaurants Restaurants ~ Restaurants Note: 77 full-scale restaurants Includes C&O of which Portillo's owns 50% of the equity.
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 6823
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7223
Slide 73: reserved | Do not share or 7323 2015 2016 2017 2018 2019 2020 2021
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7323 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 TTM
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7423 • •
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7523
Slide 76: reserved | Do not share or 7623 (1) Portillo’s current forecast for Year 1
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7623 (1) Portillo’s current forecast for Year 1 of all Class of 2022 restaurants (2) We are unable to reconcile the Average Restaurant-Level Adjusted EBITDA an
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7723
Slide 78: reserved | Do not share or 7823 • Smaller box • Equipment cost •
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7823 • Smaller box • Equipment cost • More cost-effective materials & installation
Slide 79: reserved | Do not share or 7923 (1) We are unable to reconcile the
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 7923 (1) We are unable to reconcile the Average Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin to the corresponding U.S. GAAP mea
Slide 80: reserved | Do not share or 8023 Portillo's Chipotle CAVA FWRG Shake Shack TXRH
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8023 Portillo's Chipotle CAVA FWRG Shake Shack TXRH CAKE (1) 23% CoC Returns current state (owned buildings) 80% CoC Returns Pro-Forma if buildings leased (lik
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8123
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8223
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8323
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8423
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© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8523
Slide 86: reserved | Do not share or 8623 LTM June 25, 2023 Operating Income $
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8623 LTM June 25, 2023 Operating Income $ 42,903 General and administrative expenses 74,153 Pre-opening expenses 6,355 Depreciation and amortization 22,004 Net
Slide 87: reserved | Do not share or 8723 Fiscal Year Ended December 25, 2022 December
© 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 8723 Fiscal Year Ended December 25, 2022 December 26, 2021 December 27, 2020 December 29, 2019 Cash flows provided by operating activities $ 56,889 $ 42,874 $