Casual restaurant chain Portillo’s (NASDAQ: PTLO) will be reporting earnings this Thursday before market open. Here’s what you need to know.
Portillo's met analysts’ revenue expectations last quarter, reporting revenues of $199 million, up 5.6% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS and EBITDA estimates.
Is Portillo's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Portillo’s revenue to grow 6.5% year on year, improving from the 1.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Portillo’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 9.6%, meeting analysts’ expectations, and Wingstop reported revenues up 5.3%, falling short of estimates by 4%. Chipotle traded up 8.9% following the results while Wingstop was also up 17.7%.
Read our full analysis of Chipotle’s results here and Wingstop’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 13.4% on average over the last month. Portillo's is up 45.4% during the same time and is heading into earnings with an average analyst price target of $5.94 (compared to the current share price of $5.16).
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