Portillo's Inc. (PTLO), the popular Chicago-style restaurant chain, saw its stock soar by 5.05% on November 5, 2024, following the release of its third-quarter 2024 financial results. Despite missing revenue expectations, the company's strong earnings performance and positive outlook fueled investor enthusiasm.

The restaurant group reported revenue of $178.3 million for the third quarter, up 6.9% year-over-year but slightly below analysts' consensus estimate of $182.2 million. However, Portillo's posted earnings of $0.11 per share, surpassing the consensus forecast of $0.06 per share.

While same-restaurant sales declined by 0.9% due to a 3.5% drop in transactions, the company saw an increase in average check of 2.6%, driven by menu price hikes implemented earlier in the year to combat inflationary pressures. Portillo's CEO, Michael Osanloo, acknowledged the top-line miss but highlighted the company's ability to protect margins and drive cash flow.

Despite the challenges, Portillo's remained optimistic about its long-term growth prospects. The company opened four new restaurants during the first three quarters of 2024 and plans to open five more by the end of the fiscal year, expanding its footprint in key markets like Texas. Additionally, Portillo's reaffirmed its long-term targets, including 12% to 15% unit growth, low single-digit same-restaurant sales growth, and mid-teens revenue growth.

While the company revised its fiscal 2024 same-restaurant sales guidance to approximately -1%, down from its previous forecast of flat to slightly positive, analysts remain optimistic about Portillo's growth potential, driven by its expansion plans and continued focus on operational efficiency.