Portillo’s Inc. (NASDAQ:PTLO) saw its stock drop 4% in premarket trading after the fast-casual restaurant chain revised down its fiscal 2025 guidance, citing ongoing pressures in the industry.
The company now projects same-store sales will decline between 1% and 1.5% for the year, a significant reduction from its prior forecast of 1% to 3% growth. This new outlook falls short of analyst expectations, which had anticipated 1.2% growth.
Revenue guidance was also cut to a range of $730 million to $733 million, down from the previously expected 5% to 7% increase, missing the consensus estimate of $752 million.
Adjusted EBITDA is now expected to come in between $94 million and $98 million, compared with prior guidance of flat to low single-digit growth and below analysts’ $101 million estimate.
For the third quarter, Portillo’s forecasts same-store sales to drop 2% to 2.5%, well below the 1% growth predicted by analysts.
The company attributed the guidance reductions to “pricing and promotional dynamics within the industry” and warned that it expects current headwinds to persist through the rest of 2025. In response, Portillo’s unveiled a strategic reset of its development and growth plans, focusing on core markets to improve unit economics and support long-term growth.
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