Portillo's Inc. · NASDAQ:PTLO
Portillo's — Investor Day (2023)
87 slides from Portillo's's investor day presentation, 2023
Slide 1: © 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or
© 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 P)...,......,.8 ))
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© 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 3
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Slide 5: Developing Shareholder Value
Developing Shareholder Value Michael Osanloo | CEO and President
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Slide 9: Restaurant growth 2004 to 2023E
84 72 69 64 62 57 52 46 41 38 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 which Portillo's owns 50% of the equity. © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in w
Slide 10: Evolution of Market Selection Strategy
EVOLUTION OF MARKET SELECTION STRATEGY ALIGNED WITH MACRO DRIVERS OF SUCCESS SPHHHHHSHFHF HHH HHHHHHHHHHHHHHHHHHHHHHH HHH HH Re ee uty [ @ NEW RESTAURANTS SINCE 2014 Portillo's PHT HHHHHHHH HS STRATEGY Chicagoland Brand affinity Brand awareness Brand awareness + population growth & density Current F
Slide 11: Evolution of Market Selection Strategy: 10-Year Population Growth
EVOLUTION OF MARKET SELECTION STRATEGY Portillo's ALIGNED WITH MACRO DRIVERS OF SUCCESS SFHHH HHH HHS HH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHS 10-Year Population Growth Source: U.S. Census Bureau, Population Division Note: Population growth are estimates © 2023 Portillo's Hot Dogs | Al
Slide 12: Shop 'n Ship Orders
Shop ‘n Ship Orders Low High © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 12
Slide 13: Weekly sales versus public peers
Source: Public company filings Note: Shake Shack figures approximate based on average weekly sales for domestic-company operated units © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 13
Slide 14: AUV and margin versus peers
7.1.238.311 Source: Internal data, public company filings Note: Shake Shack figures approximate based on average weekly sales for domestic-company operated units; Portillo’s AUV includes restaurants in the comparable restaurant base (unless where otherwise stated), including a restaurant that is own
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 SFHH HHH HHH HHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHS Chicagoland Non-Chicago Markets Chicago love! Attractive site 1. Behind a mall 11 mil 1. Great co-tenancy mil 2. Difficult to access $11.3
Slide 16: Great Openings Matter for a Growth Concept
GREAT OPENINGS MATTER FOR A GROWTH CONCEPT Portillo's MATCHING CAPABILITY TO DEMAND SFHHH HHH HHS HH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHS x an aN 222 8 & Portillo's NRO Playbook Happier guests & Accelerated experienced matches capability Team Members financial Managers with demand fro
Slide 17: Great Openings Matter for a Growth Concept
GREAT OPENINGS MATTER FOR A GROWTH CONCEPT Portillo's MATCHING CAPABILITY TO DEMAND SFHHH HHH HHS HH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHS 208 B <5 an Portillo's NRO Playbook ; : Happier guests & experienced = matches capability Team Mombers = Accel Managers with demand from Day 1 retu
Slide 18: 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate
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Slide 19: Returns Matter for a Growth Concept
RETURNS MATTER FOR A GROWTH CONCEPT Portille’s OPTIMIZING THE SIZE OF THE BOX SFHH HHH HHH HHH HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH HHS i a: = ES IAURANT(C i tHe = IFUTURE: ta ha 11,300 square feet 7,700 square feet 5,500-6,000 square feet 105 foot production line 65 foot production line 4
Slide 20: 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate
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✓ ✓ ✓ ✓ ✓ ✓ © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 29
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Slide 43: Budgeted '23 results by market
1• 1• 2• 2• 3• Budgeted ‘23 4• Not adjusted for pricing 1 2 3 1 2 4 3 Cheese-Sauce First-In Markets Aggregate (2016 – 2017) © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 43
Slide 44: Non-Chicagoland Overall Satisfaction (OSAT) by Class since 2016
Non-Chicagoland Overall Satisfaction (OSAT) by Class since 2016 <50% OSAT 50-60% OSAT >60% OSAT © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 44
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Slide 51: Results of completed restaurant retrofits
Note: All data based on a sample of 5 restaurants with completed retrofits © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 51
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Slide 55: Note: Numbers and ranges are rounded
Note: Numbers and ranges are rounded © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 55
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© 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 58
Slide 59: U.S. population and market potential
Note: U.S. Population is sourced from the U.S. Census Bureau, Population Division © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 59
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Slide 61: Existing and potential future Portillo's locations
Existing Portillo’s location Potential future location © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 61
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Slide 64: Only in MSAs with 6-8 or more full scale Portillo's
• Only in MSAs with 6-8 or more full scale Portillo’s • In densest urban trade areas © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 64
Slide 65: Only in MSAs with 6-8 or more full scale Portillo's
• Only in MSAs with 6-8 or more full scale Portillo’s • In densest urban trade areas © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 65
Slide 66: Note: Pictures from Chick-Fil-A website, CNN business
Note: Pictures from Chick-Fil-A website, CNN business © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 66
Slide 67: Restaurant count targets
~ Restaurants Restaurants Restaurants Note: 77 full-scale restaurants Includes C&O of which Portillo's owns 50% of the equity. © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 67
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Slide 73: Q2 2023 TTM and historical results by year
Q2 2023 TTM 2022 2021 2020 2019 2018 2017 2016 2015 © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 73
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Slide 76: New unit economic targets
(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 and Restaurant-Level Adjusted EBITDA Margin to the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts a
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Slide 78: Smaller box cost savings
• Smaller box • Equipment cost • More cost-effective materials & installation © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 78
Slide 79: New unit economic targets
(1) We are unable to reconcile the Average Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin to the corresponding U.S. GAAP measure, due to variability and difficulty in making accurate forecasts and projections and because not all information necessary to prepare the reco
Slide 80: Cash-on-cash returns versus peers
(1) 80% CoC Returns Pro-Forma if buildings leased (like for like comparison) 23% CoC Returns current state (owned buildings) Portillo's Chipotle CAVA FWRG Shake Shack TXRH CAKE © 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, w
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© 2023 2019 Portillo’s Hot Dogs | All rights reserved | Do not share or duplicate confidential content, in whole or part, without written consent 81
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Slide 86: Restaurant-Level Adjusted EBITDA reconciliation LTM June 25, 2023
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 Income attributable to equity method investment (1,273) Other income, net (453) Restaurant-Level Adjusted EBITDA $ 143,689 Restaurant-Level Adjus
Slide 87: Free cash flow reconciliation
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 $ 58,271 $ 43,325 Capital expenditures (47,061) (36,183) (21,452) (22,045) Free cash flow $ 9,828 $ 6,691 $ 36,819 $ 21,280 © 2023 2019 Portillo’s H