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Portillo's Inc. (PTLO) Stock Fundamental Analysis & AI Rating 2026

PTLO Nasdaq Retail-Eating Places DE CIK: 0001871509
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-28
SELL
85% Conf
Pending
Analysis scheduled

📊 PTLO Key Takeaways

Revenue: $732.1M
Net Margin: 2.6%
Free Cash Flow: $-18.5M
Current Ratio: 0.27x
Debt/Equity: 0.71x
EPS: $0.27
AI Rating: SELL with 85% confidence
Portillo's Inc. (PTLO) receives a SELL rating with 85% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $732.1M, net profit margin of 2.6%, and return on equity (ROE) of 4.1%, Portillo's Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete PTLO stock analysis for 2026.

Is Portillo's Inc. (PTLO) a Good Investment?

Claude

Portillo's faces a fundamental profitability crisis with net income declining 8.3% YoY despite 3.0% revenue growth, indicating severe margin compression and operational challenges. Critical liquidity constraints (current ratio of 0.27x) combined with negative free cash flow of -$18.5M and elevated debt burden (334.2M with 1.9x interest coverage) create unsustainable financial stress.

Why Buy Portillo's Inc. Stock? PTLO Key Strengths

Claude
  • + Positive operating cash flow of $71.9M demonstrates core business generates cash
  • + Moderate leverage ratio of 0.71x debt-to-equity is not excessive
  • + Established market presence in quick-service restaurant sector with $732.1M revenue base

PTLO Stock Risks: Portillo's Inc. Investment Risks

Claude
  • ! Critical liquidity crisis with current ratio of 0.27x indicates severe working capital deficit and near-term solvency concerns
  • ! Negative free cash flow of -$18.5M is unsustainable; capex of $90.4M exceeds operating cash generation
  • ! Profitability collapse with EPS down 41.3% YoY far exceeding revenue decline suggests operational deterioration and margin compression
  • ! Thin 2.6% net margin with very low ROE of 4.1% and ROA of 1.2% indicates poor capital efficiency
  • ! Weak interest coverage of 1.9x with $334.2M debt limits financial flexibility for distressed company

Key Metrics to Watch

Claude
  • * Free cash flow trajectory and ability to achieve positive FCF within 2-3 quarters
  • * Operating margin trend and unit economics by restaurant location
  • * Liquidity position and working capital management; refinancing requirements for debt maturity schedule
  • * Same-store sales growth and competitive positioning against QSR peers

Portillo's Inc. (PTLO) Financial Metrics & Key Ratios

Revenue
$732.1M
Net Income
$19.3M
EPS (Diluted)
$0.27
Free Cash Flow
$-18.5M
Total Assets
$1.6B
Cash Position
$20.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

PTLO Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 6.0%
Net Margin 2.6%
ROE 4.1%
ROA 1.2%
FCF Margin -2.5%

PTLO vs Consumer Sector: How Portillo's Inc. Compares

How Portillo's Inc. compares to Consumer sector averages

Net Margin
PTLO 2.6%
vs
Sector Avg 8.0%
PTLO Sector
ROE
PTLO 4.1%
vs
Sector Avg 18.0%
PTLO Sector
Current Ratio
PTLO 0.3x
vs
Sector Avg 1.5x
PTLO Sector
Debt/Equity
PTLO 0.7x
vs
Sector Avg 0.8x
PTLO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Portillo's Inc. Stock Overvalued? PTLO Valuation Analysis 2026

Based on fundamental analysis, Portillo's Inc. shows some fundamental concerns relative to the Consumer sector in 2026.

Return on Equity
4.1%
Sector avg: 18%
Net Profit Margin
2.6%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.71x
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Portillo's Inc. Balance Sheet: PTLO Debt, Cash & Liquidity

Current Ratio
0.27x
Quick Ratio
0.22x
Debt/Equity
0.71x
Debt/Assets
69.0%
Interest Coverage
1.91x
Long-term Debt
$334.2M

PTLO Revenue & Earnings Growth: 5-Year Financial Trend

PTLO 5-year financial data: Year 2021: Revenue $535.0M, Net Income -$12.9M, EPS $-0.25. Year 2022: Revenue $587.1M, Net Income -$8.3M, EPS $-0.16. Year 2023: Revenue $679.9M, Net Income -$15.2M, EPS $-0.42. Year 2024: Revenue $710.6M, Net Income $10.9M, EPS $0.25. Year 2025: Revenue $732.1M, Net Income $18.4M, EPS $0.32.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Portillo's Inc.'s revenue has grown significantly by 37% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.32 reflects profitable operations.

PTLO Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-2.5%
Free cash flow / Revenue

PTLO Quarterly Earnings & Performance

Quarterly financial performance data for Portillo's Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $178.3M $1.2M $0.02
Q2 2025 $181.9M $6.5M $0.10
Q1 2025 $165.8M $3.3M $0.05
Q3 2024 $166.8M $4.4M $0.07
Q2 2024 $169.2M $6.3M $0.10
Q1 2024 $156.1M -$514.0K $-0.01
Q3 2023 $151.1M $1.6M $0.04
Q2 2023 $150.6M $5.1M $0.11

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Portillo's Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$71.9M
Cash generated from operations
Stock Buybacks
$57.0M
Shares repurchased (TTM)
Capital Expenditures
$90.4M
Investment in assets
Dividends
None
No dividend program

PTLO SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Portillo's Inc. (CIK: 0001871509)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 4 xslF345X05/wk-form4_1773783252.xml View →
Mar 16, 2026 4 xslF345X05/wk-form4_1773707507.xml View →
Mar 13, 2026 4 xslF345X05/wk-form4_1773440101.xml View →
Mar 11, 2026 8-K ptlo-20260310.htm View →
Mar 4, 2026 4 xslF345X05/wk-form4_1772662687.xml View →

Frequently Asked Questions about PTLO

What is the AI rating for PTLO?

Portillo's Inc. (PTLO) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PTLO's key strengths?

Claude: Positive operating cash flow of $71.9M demonstrates core business generates cash. Moderate leverage ratio of 0.71x debt-to-equity is not excessive.

What are the risks of investing in PTLO?

Claude: Critical liquidity crisis with current ratio of 0.27x indicates severe working capital deficit and near-term solvency concerns. Negative free cash flow of -$18.5M is unsustainable; capex of $90.4M exceeds operating cash generation.

What is PTLO's revenue and growth?

Portillo's Inc. reported revenue of $732.1M.

Does PTLO pay dividends?

Portillo's Inc. does not currently pay dividends.

Where can I find PTLO SEC filings?

Official SEC filings for Portillo's Inc. (CIK: 0001871509) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PTLO's EPS?

Portillo's Inc. has a diluted EPS of $0.27.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is PTLO a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Portillo's Inc. has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PTLO stock overvalued or undervalued?

Valuation metrics for PTLO: ROE of 4.1% (sector avg: 18%), net margin of 2.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

Should I buy PTLO stock in 2026?

Our dual AI analysis gives Portillo's Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PTLO's free cash flow?

Portillo's Inc.'s operating cash flow is $71.9M, with capital expenditures of $90.4M. FCF margin is -2.5%.

How does PTLO compare to other Consumer stocks?

Vs Consumer sector averages: Net margin 2.6% (avg: 8%), ROE 4.1% (avg: 18%), current ratio 0.27 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 14, 2026 | Data as of: 2025-12-28 | Powered by Claude AI