Portillo’s Inc. (NASDAQ:PTLO) Q2 2024 Earnings Conference Call August 6, 2024 10:00 AM ET
Company Participants
Barbara Noverini – Director-Investor Relations
Michael Osanloo – President and Chief Executive Officer
Michelle Hook – Chief Financial Officer
Conference Call Participants
Sara Senatore – Bank of America
Chris O’Cull – Stifel
David Tarantino – Baird
Brian Mullan – Piper Sandler
Andy Barish – Jefferies
Matt Curtis – William Blair
Brian Harbour – Morgan Stanley
Jim Salera – Stephens Inc.
Dennis Geiger – UBS
Gregory Francfort – Guggenheim Securities
Operator
Hello, and thank you for standing by. Welcome to the Fiscal Second Quarter 2024 Conference Call and Webcast.
I would now like to turn the call over to Barbara Noverini, Director of Investor Relations at Portillo’s, to begin.
Barbara Noverini
Thank you, operator. Good morning everyone, and welcome to our fiscal second quarter 2024 earnings call. You can find our 10-Q, earnings press release and supplemental presentation on investors.portillos.com.
With me on the call today is Michael Osanloo, President and Chief Executive Officer; and Michelle Hook, Chief Financial Officer. Any commentary made here about our future results and business conditions are forward-looking statements, which are based on management’s current expectations and are not guarantees of future performance. We do not update these forward-looking statements unless required by law. Our 10-K identifies risk factors that may cause our actual results to vary materially from these forward-looking statements.
Today’s earnings call will make reference to non-GAAP financial measures, which are not an alternative to GAAP measures. Reconciliations of these non-GAAP measures to their most comparable GAAP counterparts are included in this morning’s posted materials. Finally, after we deliver our prepared remarks, we will open the lines for your questions.
Now let me turn the call over to Michael Osanloo, President and Chief Executive Officer of Portillo’s.
Michael Osanloo
Thank you, Barb, and good morning everyone. Thanks for joining us on our second quarter 2024 earnings call. Let me start by saying that second quarter results fell short of my expectations. Although we did see some top and bottom line improvement compared to Q1, we definitely have room for improvement. There’s still work to be done.
In the second quarter, we grew total sales 7.5% with a comp of negative 0.6%. We did manage restaurant level margins to a healthy 24.5%. It was encouraging to see sequential improvement in all three of these metrics in Q2, but in this macroeconomic environment, it’s an undeniable headwind on traffic and mix, and that is why we must maintain sharp focus on the factors within our control.