Portillo’s profit under pressure as CFO Michelle Hook departs

Portillo’s (NASDAQ:PTLO) posted a slight net loss for the first quarter as the beloved hot dog chain struggled to maintain profitability in the face of persistent inflationary headwinds and a major leadership transition.

The Oak Brook, Illinois-based company reported total revenue of $182.6 million for the quarter ended March 29, 2026, a 3.5% increase compared to the prior year.

Despite the top-line growth, operating income fell to $4.5 million, and the company recorded a net loss of $0.5 million.

Management attributed the results to higher labor and commodity expenses, which continue to squeeze the margins of its high-volume kitchen model.

The earnings release coincides with the departure of Chief Financial Officer Michelle Hook, whose resignation became effective today, May 5.

Hook, who has been a key figure in Portillo's journey since its 2021 IPO, is leaving as the company enters a critical phase of geographical expansion outside its Midwest stronghold.

During the quarter, Portillo's opened four new restaurants, bringing its total count to 107 across 10 states.

While the brand continues to see success in its core Chicago-area market, recent moves into Texas and Arizona have required significant investment in brand awareness and supply chain infrastructure.

Looking ahead, Portillo’s reaffirmed its full-year 2026 targets, which include the opening of at least eight new units and a restaurant-level adjusted EBITDA margin in the range of 20.5% to 21%.

The company expects to spend between $55 million and $60 million in capital expenditures this year to support its growth strategy.

Meanwhile, adjusted EBITDA for the quarter stood at $18.5 million.