Portillo's Inc. · NASDAQ:PTLO
Portillo's — Q4 2023 Earnings Presentation
20 slides from Portillo's's earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter Earnings Supplemental
Fourth Quarter Earnings Supplemental February 27, 2024
Slide 2: Cautionary Note on Forward-Looking Statements & Non-GAAP Measures
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS & NON-GAAP MEASURES This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements other than statements of historical fact are forward-looking statements. Forwa
Slide 3: Q4 2023 Performance
Q4 2023 PERFORMANCE REVENUE PROFITABILITY 24.5% $187.9 million $14.5 million Q4 Operating Income Q4 Total Revenue Q4 Total revenue Growth SAME RESTAURANT SALES GROWTH (1) $9.6 million Q4 Net Income $45.7 million Q4 Restaurant-Level Adjusted EBITDA(2) $26.1 million Q4 Adjusted EBITDA(2) (1) Same rest
Slide 4: Fiscal 2023 Performance
FISCAL 2023 PERFORMANCE REVENUE PROFITABILITY 15.8% $55.4 million $679.9 million Fiscal 2023 Fiscal 2023 Total Fiscal 2023 Total Revenue Operating Income Revenue Growth $24.8 million (1) SAME RESTAURANT SALES GROWTH Fiscal 2023 Net Income $165.2 million Fiscal 2023 Restaurant- Level Adjusted EBITDA(
Slide 5: 53rd Week Impact
53RD WEEK IMPACT REVENUE $13.9 million Impact to Q4 and Fiscal 2023 Total Revenue PROFITABILITY $1.6 million $1.2 million $3.5 million $2.4 million Impact to Q4 and Fiscal 2023 Impact to Q4 and Fiscal 2023 Impact to Q4 and Fiscal 2023 Impact to Q4 and Fiscal 2023 Restaurant-Level Adjusted Adjusted E
Slide 6: Development Update - Class of 2023
DEVELOPMENT UPDATE - CLASS OF 2023 Kissimmee, FL Tucson, AZ Allen, TX Cicero, IL Arlington, TX Clermont, FL The Colony, TX Gilbert, AZ Queen Creek, AZ Algonquin, IL Rosemont, IL Ft. Worth, TX 4 in Completed Class of 2022 8 in Class of 2023 2023 Q1 Q2 Q3 Q4
Slide 7: Development Update - Expectations for 2024 Pipeline
DEVELOPMENT UPDATE - EXPECTATIONS FOR 2024 PIPELINE 2024 Development Outlook 9+ units, 10.7% unit growth • Dallas • Arizona Sunbelt= • Houston • Central Florida 80% of Pipeline • Midwest 1 2-3 2-3 2-3 2024 Q1 Q2 Q3 Q4
Slide 8: Financial Profile
FINANCIAL PROFILE TOTAL REVENUE OPERATING INCOME NET INCOME (LOSS) *Includes $38.7 million of additional transaction-related fees and expenses *Includes $38.7 million of additional transaction-related fees and expenses ($ in millions) ($ in millions) ($ in millions) $680 $587 $55 $535 $41 $25 $17 $3
Slide 9: Fiscal 2024 and Long-Term Outlook
FISCAL 2024 AND LONG-TERM OUTLOOK Fiscal 2024 FINANCIAL TARGETS Unit Growth 9+ new units Commodity Inflation 4% to 6% General & Administrative Expenses $85 to $87 million Pre-Opening Expenses $8.0 to $9.0 million Capital Expenditures $90 to $93 million LONG-TERM FINANCIAL TARGETS Unit Growth 12% - 1
Slide 10: Net Promoter Score (Portillo's Geographies)
NET PROMOTER SCORE (PORTILLO'S GEOGRAPHIES) Note: Net promoter score measures consumer enthusiasm and advocacy based on a single survey question. Source: Qualtrics Customer Experience Benchmarks (CXB) – Proprietary benchmark survey fielded monthly. Results represent Q4 2023 to Q1 2024
Slide 11: Appendix
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Slide 12: Statement of Operations
STATEMENT OF OPERATIONS Quarter Ended Fiscal Years Ended December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 REVENUES, NET $ 187,858 100.0 % $ 150,878 100.0 % $ 679,905 100.0 % $ 587,104 100.0 % COST AND EXPENSES: Restaurant operating expenses: Food, beverage and packaging costs
Slide 13: Selected Operating Data
SELECTED OPERATING DATA Quarter Ended Fiscal Years Ended December 31, 2023 December 25, 2022 December 31, 2023 December 25, 2022 Total Restaurants (a) 84 72 84 72 AUV (in millions) (a) N/A N/A $ 9.1 $ 8.5 Change in same-restaurant sales (b)(c) 4.4 % 6.0 % 5.7 % 5.4 % Adjusted EBITDA (in thousands) (
Slide 14: Adjusted EBITDA Definitions
ADJUSTED EBITDA DEFINITIONS Adjusted EBITDA and Adjusted EBITDA Margin How These Measures Are Useful Adjusted EBITDA represents net income (loss) before depreciation and We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important amortization, interest expense, interest income and incom
Slide 15: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Quarter Ended December 31, 2023 December 25, 2022 Net income $ 9,647 $ 2,653 Depreciation and amortization 6,525 5,104 Interest expense 6,931 8,358 Interest income (96) — Income tax benefit (357) (1,688) EBITDA 22,650 14,427 Deferred rent (1) 1,315 999 Equity-based com
Slide 16: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Fiscal Years Ended December 31, 2023 December 25, 2022 December 26, 2021 Net income (loss) $ 24,818 $ 17,157 $ (13,416) Depreciation and amortization 24,313 20,907 23,312 Interest expense 27,470 27,644 39,694 Interest income (212) — — Loss on debt extinguishment 3,465
Slide 17: Restaurant-Level Adjusted EBITDA Definitions
RESTAURANT-LEVEL ADJUSTED EBITDA DEFINITIONS Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted Limitations of the Usefulness of This Measure EBITDA Margin Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin Restaurant-Level Adjusted EBITDA is defined as revenue,
Slide 18: Restaurant-Level Adjusted EBITDA Reconciliation
RESTAURANT-LEVEL ADJUSTED EBITDA RECONCILIATION Quarter Ended December 31, 2023 December 25, 2022 Operating income $ 14,467 $ 6,440 General and administrative expenses 21,550 17,707 Pre-opening expenses 3,990 2,945 Depreciation and amortization 6,525 5,104 Net Income attributable to equity method in
Slide 19: Restaurant-Level Adjusted EBITDA Reconciliation
RESTAURANT-LEVEL ADJUSTED EBITDA RECONCILIATION Fiscal Years Ended December 31, 2023 December 25, 2022 December 26, 2021 Operating income $ 55,440 $ 41,279 $ 30,012 General and administrative expenses 78,835 66,892 87,089 Pre-opening expenses 9,019 4,715 3,565 Depreciation and amortization 24,313 20
Slide 20: Contact Information
CONTACT INFORMATION Investor Contact: Barbara Noverini, CFA investors@portillos.com Media Contact: ICR, Inc. portillosPR@icrinc.com