Portillo's Beats Q3 Estimates and Raises 2026 Guidance

Portillo's, Inc. reported third-quarter fiscal 2026 results that surpassed analyst forecasts, posting revenue of $194.1 million and adjusted earnings of $0.06 per share, double the expected $0.03. The company experienced a return to growth in same-store sales and an unexpected increase in restaurant-level margins.

Following these results, the company raised its adjusted EBITDA guidance for fiscal 2026. To further improve margins for fiscal 2027, the restaurant chain plans to close underperforming units during the fourth quarter.

Financial services firms DA Davidson and Stephens responded to the earnings beat by raising their price targets for the stock to $7.00 from $5.00, although both maintained their respective Neutral and Equal Weight ratings. The stock has surged 44% over the past week, recently hitting a 52-week high of $7.02.