# EDGAR Filing Document

**Accession Number:** 0001871509
**File Stem:** 0001871509-25-000152
**Filing Date:** 2025-11
**Character Count:** 197435
**Document Hash:** fe438460daa3200421dc3c2e377f6dde
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001871509-25-000152.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001871509-25-000152

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 92

**CONFORMED PERIOD OF REPORT**: 20250928

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Portillo's Inc.
- **CENTRAL INDEX KEY:** 0001871509
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-EATING PLACES [5812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 871104304
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1228

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40951
- **FILM NUMBER:** 251446530

**BUSINESS ADDRESS:**
- **STREET 1:** C/O THE PORTILLO RESTAURANT GROUP
- **STREET 2:** 2001 SPRING ROAD, SUITE 400
- **CITY:** OAK BROOK
- **STATE:** IL
- **ZIP:** 60523-1903
- **BUSINESS PHONE:** (630) 954-3773

**MAIL ADDRESS:**
- **STREET 1:** C/O THE PORTILLO RESTAURANT GROUP
- **STREET 2:** 2001 SPRING ROAD, SUITE 400
- **CITY:** OAK BROOK
- **STATE:** IL
- **ZIP:** 60523-1903

?xml version='1.0' encoding='ASCII'? ptlo-20250928

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**<br>

☒ &nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

**FOR THE QUARTERLY PERIOD ENDED September 28, 2025**

☐ &nbsp;&nbsp;&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TO

COMMISSION FILE NUMBER: 001-40951

![logo.jpg](ptlo-20250928_g1.jpg)

**PORTILLO'S INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **87-1104304** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **2001 Spring Road, Suite 400, Oak Brook, Illinois 60523** | **2001 Spring Road, Suite 400, Oak Brook, Illinois 60523** |
| (Address of principal executive offices) | (Address of principal executive offices) |

---

**(630) 954-3773**

(Registrant's telephone number, including area code)

---

| |
|:---|
| **N/A** |
| (Former name, former address and former fiscal year, if changed since last report) |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Class A common stock, $0.01 par value per share | PTLO | Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ &nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp;☐&nbsp;&nbsp;&nbsp;&nbsp; No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ &nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. (See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act).

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ &nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;&nbsp;&nbsp; ☒ &nbsp;&nbsp;&nbsp;&nbsp;No

As of October 28, 2025, there were 71,932,314 shares of the registrant's Class A common stock, par value $0.01 per share, and 3,442,335 shares of the registrant's Class B common stock, par value $0.00001 per share, issued and outstanding.

------

**TABLE OF CONTENTS**

![banner.jpg](ptlo-20250928_g2.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **<u>[Cautionary Note Regarding Forward-Looking Information](#i0ad35552932744a18fed1a6b565f0dc1_10)</u>** | **<u>[Cautionary Note Regarding Forward-Looking Information](#i0ad35552932744a18fed1a6b565f0dc1_10)</u>** | **<u>[Cautionary Note Regarding Forward-Looking Information](#i0ad35552932744a18fed1a6b565f0dc1_10)</u>** | <u>[1](#i0ad35552932744a18fed1a6b565f0dc1_10)</u> |
| **<u>[Part I](#i0ad35552932744a18fed1a6b565f0dc1_13)</u>** | **<u>Financial Information</u>** | **<u>Financial Information</u>** | |
| | <u>[Item 1.](#i0ad35552932744a18fed1a6b565f0dc1_16)</u> | <u>[Financial Statements (Unaudited)](#i0ad35552932744a18fed1a6b565f0dc1_16)</u> | <u>[3](#i0ad35552932744a18fed1a6b565f0dc1_19)</u> |
| | | &nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets](#i0ad35552932744a18fed1a6b565f0dc1_19)</u> | <u>[3](#i0ad35552932744a18fed1a6b565f0dc1_19)</u> |
| | | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Operations](#i0ad35552932744a18fed1a6b565f0dc1_22)</u> | <u>[4](#i0ad35552932744a18fed1a6b565f0dc1_22)</u> |
| | | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Stockholders' Equity](#i0ad35552932744a18fed1a6b565f0dc1_28)</u> | <u>[5](#i0ad35552932744a18fed1a6b565f0dc1_25)</u> |
| | | &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows](#i0ad35552932744a18fed1a6b565f0dc1_31)</u> | <u>[7](#i0ad35552932744a18fed1a6b565f0dc1_31)</u> |
| | | &nbsp;&nbsp;<u>[Notes to Condensed Consolidated Financial Statements](#i0ad35552932744a18fed1a6b565f0dc1_13)</u> | <u>[9](#i0ad35552932744a18fed1a6b565f0dc1_34)</u> |
| | <u>[Item 2.](#i0ad35552932744a18fed1a6b565f0dc1_130)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i0ad35552932744a18fed1a6b565f0dc1_130)</u> | <u>[22](#i0ad35552932744a18fed1a6b565f0dc1_130)</u> |
| | <u>[Item 3.](#i0ad35552932744a18fed1a6b565f0dc1_178)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i0ad35552932744a18fed1a6b565f0dc1_178)</u> | <u>[37](#i0ad35552932744a18fed1a6b565f0dc1_178)</u> |
| | <u>[Item 4.](#i0ad35552932744a18fed1a6b565f0dc1_181)</u> | <u>[Controls and Procedures](#i0ad35552932744a18fed1a6b565f0dc1_181)</u> | <u>[37](#i0ad35552932744a18fed1a6b565f0dc1_181)</u> |
| **<u>[Part II](#i0ad35552932744a18fed1a6b565f0dc1_184)</u>** | **<u>Other Information</u>** | **<u>Other Information</u>** | |
| | <u>[Item 1.](#i0ad35552932744a18fed1a6b565f0dc1_187)</u> | <u>[Legal Proceedings](#i0ad35552932744a18fed1a6b565f0dc1_187)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_187)</u> |
| | <u>[Item 1A.](#i0ad35552932744a18fed1a6b565f0dc1_190)</u> | <u>[Risk Factors](#i0ad35552932744a18fed1a6b565f0dc1_190)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_190)</u> |
| | <u>[Item 2.](#i0ad35552932744a18fed1a6b565f0dc1_193)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i0ad35552932744a18fed1a6b565f0dc1_193)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_193)</u> |
| | <u>[Item 3.](#i0ad35552932744a18fed1a6b565f0dc1_196)</u> | <u>[Defaults](#i0ad35552932744a18fed1a6b565f0dc1_196)[U](#i0ad35552932744a18fed1a6b565f0dc1_196)[pon Senior Securities](#i0ad35552932744a18fed1a6b565f0dc1_196)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_196)</u> |
| | <u>[Item 4.](#i0ad35552932744a18fed1a6b565f0dc1_199)</u> | <u>[Mine Safety Disclosures](#i0ad35552932744a18fed1a6b565f0dc1_199)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_199)</u> |
| | <u>[Item 5.](#i0ad35552932744a18fed1a6b565f0dc1_202)</u> | <u>[Other Information](#i0ad35552932744a18fed1a6b565f0dc1_202)</u> | <u>[38](#i0ad35552932744a18fed1a6b565f0dc1_202)</u> |
| | <u>[Item 6.](#i0ad35552932744a18fed1a6b565f0dc1_208)</u> | <u>[Exhibits](#i0ad35552932744a18fed1a6b565f0dc1_208)</u> | <u>[39](#i0ad35552932744a18fed1a6b565f0dc1_208)</u> |
| | <u>[Signatures](#i0ad35552932744a18fed1a6b565f0dc1_211)</u> | | <u>[40](#i0ad35552932744a18fed1a6b565f0dc1_211)</u> |

---

------

<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

**Cautionary Note Regarding Forward-Looking Information**

![banner.jpg](ptlo-20250928_g2.jpg)

This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact are forward-looking statements. Many of the forward-looking statements are located in Part I, Item 2 of this Form 10-Q under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "outlook," "potential," "project," "projection," "plan," "intend," "seek," "may," "could," "would," "will," "should," "can," "can have," "likely," the negatives thereof and other similar expressions.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that we may not predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements, and you should not unduly rely on these statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to or arising from our organizational structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks of food-borne illness and food safety and other health concerns about our food;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks relating to the economy and financial markets, including in relation to trade and tax policy changes and other macroeconomic uncertainty, including inflation, fluctuating interest rates, stock market volatility, recession concerns, and other factors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our recently announced search for a new Chief Executive Officer and the related transition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of unionization activities of our team members on our reputation, operations and profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our reliance on certain information technology systems, including our new enterprise resource planning system, and potential failures or interruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with data, privacy, cyber security and the use and implementation of information technology systems, including our digital ordering and payment platforms for our delivery business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with increased adoption, implementation and use of artificial intelligence technologies across our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of competition, including from our competitors in the restaurant industry or our own restaurants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increasingly competitive labor market and our ability to attract and retain the best talent and qualified employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of federal, state or local government regulations relating to privacy, data protection, advertising and consumer protection, building and zoning requirements, labor and employment matters, costs of or ability to open new restaurants, or the sale of food and alcoholic beverages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to achieve our growth strategy, including as a result of, among other things, the availability of suitable new restaurant sites in existing and new markets and opening of new restaurants at the anticipated rate and on the anticipated timeline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of consumer sentiment and other economic factors on our sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in food and other operating costs, tariffs and import taxes, and supply shortages; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks identified in our filings with the Securities and Exchange Commission (the "SEC").

All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this Form 10-Q in the context of the risks and uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024 filed with the SEC on February 25, 2025, and subsequent filings with the SEC, which are available on the SEC's website at www.sec.gov.

The forward-looking statements included in this Form 10-Q are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 1

------

<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

**PART I – FINANCIAL INFORMATION**

![banner.jpg](ptlo-20250928_g2.jpg)

---

| | |
|:---|:---|
| **Item 1. Financial Statements (Unaudited)** | |
| | **Page** |
| &nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets](#i0ad35552932744a18fed1a6b565f0dc1_19)</u> | <u>[3](#i0ad35552932744a18fed1a6b565f0dc1_19)</u> |
| &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Operations](#i0ad35552932744a18fed1a6b565f0dc1_22)</u> | <u>[4](#i0ad35552932744a18fed1a6b565f0dc1_22)</u> |
| &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Stockholders' Equity](#i0ad35552932744a18fed1a6b565f0dc1_25)</u> | <u>[5](#i0ad35552932744a18fed1a6b565f0dc1_25)</u> |
| &nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows](#i0ad35552932744a18fed1a6b565f0dc1_31)</u> | <u>[7](#i0ad35552932744a18fed1a6b565f0dc1_31)</u> |
| &nbsp;&nbsp;<u>[Notes to Condensed Consolidated Financial Statements](#i0ad35552932744a18fed1a6b565f0dc1_34)</u> | <u>[9](#i0ad35552932744a18fed1a6b565f0dc1_37)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 1. Description Of Business](#i0ad35552932744a18fed1a6b565f0dc1_37)</u> | <u>[9](#i0ad35552932744a18fed1a6b565f0dc1_37)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 2. Summary Of Significant Accounting Policies](#i0ad35552932744a18fed1a6b565f0dc1_43)</u> | <u>[9](#i0ad35552932744a18fed1a6b565f0dc1_43)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 3. Revenue Recognition](#i0ad35552932744a18fed1a6b565f0dc1_49)</u> | <u>[11](#i0ad35552932744a18fed1a6b565f0dc1_49)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 4. Inventories](#i0ad35552932744a18fed1a6b565f0dc1_55)</u> | <u>[12](#i0ad35552932744a18fed1a6b565f0dc1_55)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 5. Property & Equipment, Net](#i0ad35552932744a18fed1a6b565f0dc1_58)</u> | <u>[12](#i0ad35552932744a18fed1a6b565f0dc1_58)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 6. Goodwill & Intangible Assets](#i0ad35552932744a18fed1a6b565f0dc1_64)</u> | <u>[13](#i0ad35552932744a18fed1a6b565f0dc1_64)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 7. Fair Value of Financial Instruments](#i0ad35552932744a18fed1a6b565f0dc1_73)</u> | <u>[14](#i0ad35552932744a18fed1a6b565f0dc1_73)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 8. Debt](#i0ad35552932744a18fed1a6b565f0dc1_79)</u> | <u>[15](#i0ad35552932744a18fed1a6b565f0dc1_79)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 9. Non-Controlling Interests](#i0ad35552932744a18fed1a6b565f0dc1_88)</u> | <u>[16](#i0ad35552932744a18fed1a6b565f0dc1_88)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 10. Equity-Based Compensation](#i0ad35552932744a18fed1a6b565f0dc1_94)</u> | <u>[17](#i0ad35552932744a18fed1a6b565f0dc1_94)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 11. Income Taxes](#i0ad35552932744a18fed1a6b565f0dc1_103)</u> | <u>[18](#i0ad35552932744a18fed1a6b565f0dc1_103)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 12. Earnings Per Share](#i0ad35552932744a18fed1a6b565f0dc1_109)</u> | <u>[19](#i0ad35552932744a18fed1a6b565f0dc1_109)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 13. Contingencies](#i0ad35552932744a18fed1a6b565f0dc1_115)</u> | <u>[20](#i0ad35552932744a18fed1a6b565f0dc1_115)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 14. Segment Information](#i0ad35552932744a18fed1a6b565f0dc1_118)</u> | <u>[20](#i0ad35552932744a18fed1a6b565f0dc1_118)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Note 15. Related Party Transactions](#i0ad35552932744a18fed1a6b565f0dc1_121)</u> | <u>[21](#i0ad35552932744a18fed1a6b565f0dc1_121)</u> |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 2

------

**PORTILLO'S INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

*(In thousands, except share and per share data)*

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| **ASSETS** | | |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents and restricted cash | $17234 | $22876 |
| &nbsp;&nbsp;Accounts and tenant improvement receivables | 18850 | 14794 |
| &nbsp;&nbsp;Inventories | 9225 | 7915 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 4786 | 7066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 50095 | 52651 |
| Property and equipment, net | 407252 | 358975 |
| Operating lease assets | 259468 | 222390 |
| &nbsp;&nbsp;&nbsp;Goodwill | 394298 | 394298 |
| &nbsp;&nbsp;&nbsp;Trade names | 221725 | 223925 |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | 24068 | 26098 |
| &nbsp;&nbsp;&nbsp;Equity method investment | 15701 | 16056 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 210298 | 197409 |
| &nbsp;&nbsp;&nbsp;Other assets | 7637 | 8284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other assets | 873727 | 866070 |
| **TOTAL ASSETS** | $1590542 | $1500086 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $48470 | $45516 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 6250 | 11250 |
| &nbsp;&nbsp;&nbsp;Current portion of Tax Receivable Agreement liability | 7766 | 7686 |
| &nbsp;&nbsp;&nbsp;Short-term debt | 77000 | 25000 |
| &nbsp;&nbsp;Deferred revenue | 4394 | 7032 |
| &nbsp;&nbsp;Short-term operating lease liabilities | 6301 | 6013 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 37123 | 33072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 187304 | 135569 |
| LONG-TERM LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 239368 | 275422 |
| &nbsp;&nbsp;&nbsp;Tax Receivable Agreement liability | 345480 | 316893 |
| &nbsp;&nbsp;Long-term operating lease liabilities | 326391 | 278540 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | 3599 | 3559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 914838 | 874414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1102142 | 1009983 |
| COMMITMENTS AND CONTINGENCIES (NOTE 13) |  |  |
| STOCKHOLDERS' EQUITY: |  |  |
| &nbsp;&nbsp;Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued or outstanding |  |  |
| &nbsp;&nbsp;Class A common stock, $0.01 par value per share, 380,000,000 shares authorized, and 71,924,160 and 63,674,579 shares issued and outstanding at September 28, 2025 and December 29, 2024 , respectively. | 719 | 637 |
| &nbsp;&nbsp;Class B common stock, $0.00001 par value per share, 50,000,000 shares authorized, and 3,442,335 and 10,732,800 shares issued and outstanding at September 28, 2025 and December 29, 2024, respectively. |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 402343 | 357295 |
| &nbsp;&nbsp;Retained earnings | 56360 | 43129 |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity attributable to Portillo's Inc. | 459422 | 401061 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | 28978 | 89042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 488400 | 490103 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $1590542 | $1500086 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 3

------

**PORTILLO'S INC**

**CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**(UNAUDITED)**

*(In thousands, except share and per share data)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| **REVENUES, NET** | $181428 | $178252 | $546321 | $525945 |
| **COST AND EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Restaurant operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Food, beverage and packaging costs | 62619 | 60136 | 187471 | 178809 |
| &nbsp;&nbsp;&nbsp;&nbsp;Labor | 48263 | 45945 | 143471 | 135659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 10524 | 9172 | 30511 | 27723 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 23331 | 21053 | 67040 | 60868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total restaurant operating expenses** | 144737 | 136306 | 428493 | 403059 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 20025 | 18305 | 57726 | 54786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-opening expenses | 3260 | 1747 | 5465 | 5270 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 7312 | 6679 | 21489 | 20729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to equity method investment | (452) | (383) | (998) | (923) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other loss (income), net | 1112 | (390) | 800 | (1176) |
| **OPERATING INCOME** | 5434 | 15988 | 33346 | 44200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 5664 | 6450 | 17139 | 19583 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (118) | (50) | (268) | (204) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax Receivable Agreement liability adjustment | 353 | (1724) | (2132) | (2724) |
| **(LOSS) INCOME BEFORE INCOME TAXES** | (465) | 11312 | 18607 | 27545 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (benefit) expense | (1247) | 2539 | 3792 | 4898 |
| **NET INCOME** | 782 | 8773 | 14815 | 22647 |
| Net (loss) income attributable to non-controlling interests | (432) | 1553 | 1584 | 4395 |
| **NET INCOME ATTRIBUTABLE TO PORTILLO'S INC.** | $1214 | $7220 | $13231 | $18252 |
| Net income per common share attributable to Portillo's Inc.: |  |  |  |  |
| Basic | $0.02 | $0.12 | $0.20 | $0.30 |
| Diluted | $0.02 | $0.11 | $0.19 | $0.29 |
| Weighted-average common shares outstanding: |  |  |  |  |
| Basic | 71908534 | 61921564 | 67780566 | 60336488 |
| Diluted | 73973710 | 64894558 | 70131466 | 63347715 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 4

------

**PORTILLO'S INC**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

*(In thousands, except share data)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** | **<u>Quarter Ended September 28, 2025 and September 29, 2024</u>** |
| | **<u>Class A Common Stock</u>** | **<u>Class A Common Stock</u>** | **<u>Class B Common Stock</u>** | **<u>Class B Common Stock</u>** | | | | |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Retained Earnings** | **Non-Controlling Interest** | **Total Stockholders' Equity** |
| **Balance at June 30, 2024** | 61739874 | $617 | 11640555 | $— | $344937 | $24644 | $93924 | $464122 |
| &nbsp;&nbsp;Net income |  |  |  |  |  | 7220 | 1553 | 8773 |
| &nbsp;&nbsp;Equity-based compensation |  |  |  |  | 2940 |  | 566 | 3506 |
| &nbsp;&nbsp;Activity under equity-based compensation plans | 416652 | 4 |  |  | 1522 |  |  | 1526 |
| &nbsp;&nbsp;Redemption of LLC Interests | 66763 | 1 | (66763) |  | (1) |  |  |  |
| &nbsp;&nbsp;Non-controlling interest adjustment |  |  |  |  | 892 |  | (892) |  |
| &nbsp;&nbsp;Establishment of liabilities under Tax Receivable Agreement and related changes to deferred tax assets associated with increases in tax basis |  |  |  |  | (335) |  |  | (335) |
| **Balance at September 29, 2024** | 62223289 | 622 | 11573792 |  | 349955 | 31864 | 95151 | 477592 |
| **Balance at June 29, 2025** | 71890168 | 719 | 3442335 |  | 403068 | 55146 | 28864 | 487797 |
| &nbsp;&nbsp;Net income (loss) |  |  |  |  |  | 1214 | (432) | 782 |
| &nbsp;&nbsp;Equity-based compensation |  |  |  |  | (173) |  | (147) | (320) |
| &nbsp;&nbsp;Activity under equity-based compensation plans | 33992 |  |  |  | 1 |  |  | 1 |
| &nbsp;&nbsp;Non-controlling interest adjustment |  |  |  |  | (553) |  | 553 |  |
| &nbsp;&nbsp;Contributions from non-controlling interest holders |  |  |  |  |  |  | 140 | 140 |
| **Balance at September 28, 2025** | 71924160 | $719 | 3442335 | $— | $402343 | $56360 | $28978 | $488400 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 5

------

**PORTILLO'S INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

*(In thousands, except share data)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** | **<u>Three Quarters Ended September 28, 2025 and September 29, 2024</u>** |
| | **<u>Class A Common Stock</u>** | **<u>Class A Common Stock</u>** | **<u>Class B Common Stock</u>** | **<u>Class B Common Stock</u>** | | | | |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in Capital** | **Retained Earnings** | **Non-Controlling Interest** | **Total Stockholders' Equity** |
| **Balance at December 31, 2023** | 55502375 | $555 | 17472926 | $— | $308212 | $13612 | $137731 | $460110 |
| &nbsp;&nbsp;Net income |  |  |  |  |  | 18252 | 4395 | 22647 |
| &nbsp;&nbsp;Equity-based compensation |  |  |  |  | 7590 |  | 1633 | 9223 |
| &nbsp;&nbsp;Activity under equity-based compensation plans | 821780 | 8 |  |  | 2690 |  |  | 2698 |
| &nbsp;&nbsp;Redemption of LLC Units  | 5899134 | 59 | (5899134) |  | (59) |  |  |  |
| &nbsp;&nbsp;Non-controlling interest adjustment |  |  |  |  | 47770 |  | (47770) |  |
| &nbsp;&nbsp;Distributions paid to non-controlling interest holders |  |  |  |  |  |  | (838) | (838) |
| &nbsp;&nbsp;Establishment of liabilities under Tax Receivable Agreement and related changes to deferred tax assets associated with increases in tax basis |  |  |  |  | (16248) |  |  | (16248) |
| **Balance at September 29, 2024** | 62223289 | 622 | 11573792 |  | 349955 | 31864 | 95151 | 477592 |
| **Balance at December 29, 2024** | 63674579 | 637 | 10732800 |  | 357295 | 43129 | 89042 | 490103 |
| &nbsp;&nbsp;Net income |  |  |  |  |  | 13231 | 1584 | 14815 |
| &nbsp;&nbsp;Equity-based compensation |  |  |  |  | 3875 |  | 413 | 4288 |
| &nbsp;&nbsp;Activity under equity-based compensation plans | 959116 | 9 |  |  | 2141 |  |  | 2150 |
| &nbsp;&nbsp;Redemption of LLC Units | 7290465 | 73 | (7290465) |  | (73) |  |  |  |
| &nbsp;&nbsp;Non-controlling interest adjustment |  |  |  |  | 60910 |  | (60910) |  |
| &nbsp;&nbsp;Distributions paid to non-controlling interest holders |  |  |  |  |  |  | (1291) | (1291) |
| &nbsp;&nbsp;Establishment of liabilities under Tax Receivable Agreement and related changes to deferred tax assets associated with increases in tax basis |  |  |  |  | (21805) |  |  | (21805) |
| &nbsp;&nbsp;Contributions from non-controlling interests |  |  |  |  |  |  | 140 | 140 |
| **Balance at September 28, 2025** | 71924160 | $719 | 3442335 | $— | $402343 | $56360 | $28978 | $488400 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 6

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**PORTILLO'S INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

*(In thousands)*

---

| | | |
|:---|:---|:---|
| | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** | | |
| Net income | $14815 | $22647 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 21489 | 20729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and discount | 521 | 568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sales of assets | 248 | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation | 4288 | 9223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | 3792 | 4898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax Receivable Agreement liability adjustment | (2132) | (2724) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gift card breakage | (656) | (666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairment | 2200 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (123) | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables from related parties | (102) | 152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1310) | 435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 2280 | 2222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease assets | 7079 | 6511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (6696) | 4538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 2004 | 1880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (2296) | (2591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred lease incentives | 2186 | 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets and liabilities | 1154 | 29 |
| &nbsp;&nbsp;&nbsp;**NET CASH PROVIDED BY OPERATING ACTIVITIES** | 48741 | 71954 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (58097) | (56514) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property and equipment | 18 | 77 |
| &nbsp;&nbsp;&nbsp;**NET CASH USED IN INVESTING ACTIVITIES** | (58079) | (56437) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short-term debt, net | 52000 | (1000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of long-term debt | (40312) | (3750) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from equity offering, net of underwriting discounts |  | 114960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of outstanding equity / Portillo's OpCo units |  | (114960) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions paid to non-controlling interest holders | (1291) | (838) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock option exercises | 2727 | 2576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee withholding taxes related to net settled equity awards | (984) | (395) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Employee Stock Purchase Plan purchases | 365 | 401 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of Tax Receivable Agreement liability | (7686) | (4429) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred financing costs | (1263) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contributions from non-controlling interests | 140 |  |
| &nbsp;&nbsp;**NET CASH PROVIDED BY (USED) IN FINANCING ACTIVITIES** | 3696 | (7435) |
| **NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH** | (5642) | 8082 |
| **CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE PERIOD** | 22876 | 10438 |
| **CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD** | $17234 | $18520 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 7

------

**PORTILLO'S INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

*(In thousands)*

---

| | | |
|:---|:---|:---|
| | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** |
| **SUPPLEMENTAL CASH FLOW INFORMATION** | | |
| &nbsp;&nbsp;&nbsp;Interest paid | $17326 | $13010 |
| &nbsp;&nbsp;&nbsp;Income tax paid |  |  |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Accrued capital expenditures | $23375 | $22352 |
| &nbsp;&nbsp;&nbsp;Establishment of liabilities under Tax Receivable Agreement | 38485 | 34025 |

---

See accompanying notes to unaudited condensed consolidated financial statements.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 8

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF BUSINESS** 

Portillo's Inc. ("Inc.") was formed and incorporated as a Delaware corporation on June 8, 2021. Inc. was formed for the purpose of completing an initial public offering ("IPO") and related reorganization transactions in order to carry on the business of PHD Group Holdings LLC and its subsidiaries ("Portillo's OpCo"). Portillo's Inc. is the sole managing member of Portillo's OpCo, and as sole managing member, Inc. operates and controls all of the business and affairs of Portillo's OpCo and reports a non-controlling interest representing the economic interest in Portillo's OpCo held by the other members of Portillo's OpCo (the "pre-IPO LLC Members"). Unless the context otherwise requires, references to "we," "us," "our," "Portillo's," and the "Company" refer to Portillo's Inc. and its subsidiaries, including Portillo's OpCo.

The Company operates restaurants in 10 states that serve Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut fries, homemade chocolate cake and more, along with two food production commissaries in Illinois. As of September 28, 2025, the Company had 97 restaurants in operation. The Company also had one non-traditional location in operation, a food truck. Portillo's additionally has a 50% interest in a single restaurant owned by C&O Chicago, L.L.C. ("C&O"), which is excluded from the Company's restaurant count noted above. The Company's principal corporate offices are located in Oak Brook, Illinois.

The Company entered into a joint venture agreement to develop and operate a restaurant at the Dallas-Fort Worth International Airport ("DFW") which is expected to commence operations in 2026. The Company holds a 65% ownership interest in AP Dogs, LLC ("AP Dogs") and has day-to-day operational and managerial control over its business and affairs. Accordingly, the Company consolidates the joint venture and reports a noncontrolling interest representing the economic interest in AP Dogs held by the other partner.

**NOTE 2.&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

**Basis of Presentation** 

The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP for annual reports. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024.

All intercompany balances and transactions have been eliminated in consolidation.

The Company does not have any components of other comprehensive income (loss) recorded within its condensed consolidated financial statements, and therefore, does not separately present a statement of comprehensive income (loss).

**Fiscal Year** 

The Company uses a 52- or 53-week fiscal year ending on the Sunday prior to or on December 31. In a 52-week fiscal year, each quarterly period is comprised of 13 weeks. An additional week in a 53-week fiscal year is added to the fourth quarter. Fiscal 2025 and 2024 consist of 52 weeks. The fiscal periods presented in this report are the quarter and three quarters ended September 28, 2025 and September 29, 2024, respectively.

**Use of Estimates**

The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and expenses during the period. Actual results could differ from those estimates.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 9

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Goodwill and Indefinite-Lived Intangible Assets**

Goodwill and indefinite-lived intangible assets are assessed for impairment annually in the fourth quarter or more frequently if events and circumstances indicate that it is more likely than not that the fair value of a reporting unit or an intangible asset is less than its carrying value.

In the quarter ended September 28, 2025, management identified impairment indicators that required a quantitative assessment of goodwill outside of the Company's annual impairment test. These indicators included the announcement of a strategic reset of the Company's development and growth plan, which resulted in revised financial targets for fiscal year 2025 and the announced departure of the Company's President and Chief Executive Officer, effective September 21, 2025. Based on these factors and information available, the Company determined that an interim quantitative test of goodwill and indefinite-lived intangible assets for impairment should be performed as of September 28, 2025.

The Company has one reporting unit and the fair value of the reporting unit was estimated using a weighted combination of the income and market approaches. Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, EBITDA margins, capital expenditures, perpetual growth rates, and long-term discount rates, among others. The market approach incorporated both the guideline public company method and the guideline transaction method. The guideline public company method involves analyzing valuation multiples of comparable publicly traded companies with similar operating and investment characteristics, while the guideline transaction method considers transaction multiples observed for comparable businesses. The Company also reconciles the fair value of its reporting unit to its current market capitalization to assess reasonableness. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded for the difference between the fair value of the reporting unit and the carrying value of the reporting unit. Upon completion of the quantitative impairment test and review of the related results in connection with the preparation of this Quarterly Report on Form 10-Q, the Company determined that the fair value of the reporting unit exceeded its carrying value by approximately 19%. Accordingly, the Company concluded that no impairment of goodwill existed as of the quarter and three quarters ended September 28, 2025.

The Company's indefinite-lived intangible assets consist of trade names and trademarks (collectively, the "trade names"). The Company estimates the fair value of its trade names using a relief-from-royalty income approach. If the fair value of the trade name is less than its carrying value, an impairment loss is recorded for the difference between the estimated fair value and carrying value of the intangible assets. In the quarter ended September 28, 2025, due to the impairment indicators mentioned above, the Company also tested its trade names for impairment in connection with the preparation of this Quarterly Report on Form 10-Q. As a result, the Company recorded a non-cash impairment charge of $2.2 million related to its legacy Barnelli's trade name, a pasta concept available at nine co-branded restaurants, during the quarter and three quarters ended September 28, 2025. This impairment charge is included within other loss (income), net in the condensed consolidated statements of operations.

**Recently Issued Accounting Standards**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures, which requires public entities to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold on an annual basis. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We will adopt ASU 2023-09 in our Annual Report on From 10-K for the year ending December 28, 2025. The adoption of ASU 2023-09 will not have an impact on our financial condition or results of operations but will change certain disclosures in our financial statements related to income taxes.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. In January 2025, the FASB issued ASU 2025-01 "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures-Clarifying the Effective Date", which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of adopting this ASU.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which updates the cost capitalization threshold for internal-use software development costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 10

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

early adoption permitted. The Company is currently evaluating the effect of adopting this ASU.

**Recently Adopted Accounting Standards** 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this standard for the year ended December 29, 2024. Refer to Note 14. Segment Information for further detail.

The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to its condensed consolidated financial statements.

**NOTE 3.&nbsp;&nbsp;&nbsp;&nbsp;REVENUE RECOGNITION**

Revenues from retail restaurants are presented net of discounts and recognized when food and beverage products are sold to the end customer. Sales taxes collected from customers are excluded from revenues and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities.

Delivery sales are generally fulfilled by third-party delivery partners whether ordered through the Portillo's app and website ("Dispatch Sales") or through third-party delivery partners ("Marketplace Sales"). Dispatch Sales include delivery and service fees as the Company controls the delivery. Revenue from Dispatch Sales is recognized when food is delivered to the customer. For these sales, the Company receives payment directly from the customer at the time of sale. Revenue for Marketplace Sales is recognized in the amount paid to the delivery partner by the customer for food and excludes delivery and service fees charged by the third-party delivery partner as the Company does not control the delivery. Revenue from Marketplace Sales is recognized when food is delivered to the customer. For these sales, the Company receives payment from the delivery partner subsequent to the transfer of order, which is generally paid one week in arrears. For all delivery sales of food, the Company is considered the principal and recognizes revenue on a gross basis.

**Gift Cards**

The Company sells gift cards which do not have expiration dates. The Company records the sale of the gift card as a contract liability and recognizes revenue from gift cards when: (i) the gift card is redeemed by the customer; or (ii) in the event a gift card is not expected to be redeemed, in proportion to the pattern of rights exercised by the customer (gift card breakage). The Company has determined that 11% of gift card sales will not be redeemed and will be retained by us based on a portfolio assessment of historical data on gift card redemption patterns. Gift card breakage is recorded within revenues, net in the condensed consolidated statements of operations. The Company recognized gift card breakage of $0.2 million and $0.7 million for the quarter and three quarters ended September 28, 2025 and September 29, 2024, respectively.

The Company's revenue related to performance obligations not yet satisfied is revenue from gift cards sold but not yet redeemed. The gift card liability included in deferred revenue on the condensed consolidated balance sheets is as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| Gift card liability | $3972 | $6875 |

---

Revenue recognized in the condensed consolidated statement of operations for the redemption of gift cards that were included in their respective gift card liability balances at the beginning of the year is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Revenue recognized from gift card liability balance at the beginning of the year | $568 | $568 | $3550 | $3550 |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 11

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Loyalty Program**

On March 3, 2025, the Company launched Portillo's Perks™, an app-less loyalty program that lives in guests' digital wallets. The loyalty program ("Perks") is a visit-based program, and guests earn rewards based on qualified visits.

The Company defers revenue based on the average selling price of food, beverages, or retail merchandise earned through qualifying visits, establishing a corresponding Perks liability within deferred revenue on the condensed consolidated balance sheets. Currently, the Company does not record breakage due to the short expiration period of 14 to 30 days after the reward is issued. Upon redemption of Perks, revenue is recognized for redeemed food, beverage, or retail merchandise, and the Perks liability is reduced accordingly. As of September 28, 2025, the Perks liability was $0.1 million.

**NOTE 4.&nbsp;&nbsp;&nbsp;&nbsp;INVENTORIES**

Inventories consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| Raw materials | $6438 | $5756 |
| Work in progress | 180 | 168 |
| Finished goods | 2216 | 1216 |
| Consigned inventory | 391 | 775 |
|  | $9225 | $7915 |

---

**NOTE 5.&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY & EQUIPMENT, NET** 

Property and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| Land and land improvements | $25911 | $24100 |
| Buildings and improvements | 5791 | 5084 |
| Furniture, fixtures, and equipment | 189436 | 177443 |
| Leasehold improvements | 307218 | 286003 |
| Transportation equipment | 2019 | 2042 |
| Construction-in-progress | 43691 | 12348 |
|  | 574066 | 507020 |
| Less accumulated depreciation | (166814) | (148045) |
|  | $407252 | $358975 |

---

Depreciation expense was $6.6 million and $19.5 million for the quarter and three quarters ended September 28, 2025, respectively, and $6.0 million and $18.6 million for the quarter and three quarters ended September 29, 2024, respectively, and is included in depreciation and amortization in the condensed consolidated statements of operations.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 12

------

**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 6.&nbsp;&nbsp;&nbsp;&nbsp;GOODWILL & INTANGIBLE ASSETS**

The Company has one reporting unit for goodwill which is evaluated for impairment annually in the fourth quarter of each fiscal year, along with indefinite-lived intangibles, or more frequently when impairment indicators are present. The Company completed an interim quantitative impairment test of both goodwill and trade names. After completing the evaluation, the Company concluded that no impairment of goodwill existed as of the quarter and three quarters ended September 28, 2025. During the quarter and three quarters ended September 28, 2025, the Company recognized trade name impairment charges of $2.2 million, included within other loss (income), net in the consolidated statement of operations. Refer to Note 2. Summary Of Significant Accounting Policies for further information.

Intangible assets, net consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of September 28, 2025** | **As of September 28, 2025** | **As of September 28, 2025** | **As of September 28, 2025** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Impairment** | **Net Carrying Amount** |
| Indefinite-lived intangible assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade names | $223925 | $— | $(2200) | $221725 |
| Intangible subject to amortization: |  |  |  |  |
| &nbsp;&nbsp;Recipes | 56117 | (32049) |  | 24068 |
|  | $280042 | $(32049) | $(2200) | $245793 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 29, 2024** | **As of December 29, 2024** | **As of December 29, 2024** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Net Carrying Amount** |
| Indefinite-lived intangible assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;Trade names | $223925 | $— | $223925 |
| Intangible subject to amortization: |  |  |  |
| &nbsp;&nbsp;Recipes | 56117 | (30019) | 26098 |
|  | $280042 | $(30019) | $250023 |

---

Amortization expense was $0.7 million for both the quarters ended September 28, 2025 and September 29, 2024, and $2.0 million and $2.2 million for the three quarters ended September 28, 2025 and September 29, 2024, respectively, and is included in depreciation and amortization in the condensed consolidated statements of operations.

The estimated aggregate amortization expense related to intangible assets held at September 28, 2025 for the remainder of this year and the succeeding five years and thereafter is as follows (in thousands):

---

| | |
|:---|:---|
| | **Estimated Amortization** |
| 2025 (excluding the three quarters ended September 28, 2025) | $677 |
| 2026 | 2707 |
| 2027 | 2707 |
| 2028 | 2707 |
| 2029 | 2150 |
| 2030 | 1369 |
| 2031 and thereafter | 11751 |
|  | $24068 |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 13

------

**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 7.&nbsp;&nbsp;&nbsp;&nbsp;FAIR VALUE OF FINANCIAL INSTRUMENTS**

**Assets and Liabilities Measured at Fair Value on a Recurring Basis**

The carrying value of the Company's cash and cash equivalents and restricted cash, accounts and tenant improvement receivables, accounts payable and all other current assets and liabilities, approximate fair values due to the short-term nature of these financial instruments.

Other assets consist of long-term prepaid expenses and a deferred compensation plan with related assets held in a rabbi trust. Other long-term liabilities consist of a deferred gain on a supplier arrangement. Long-term prepaid expenses and other long-term liabilities approximate fair values due to the nature of these financial instruments.

**Deferred Compensation Plan -** The Company maintains a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities carried at fair value. The fair value measurement of these trading securities is considered Level 1 of the fair value hierarchy as they are measured using quoted market prices.

As of September 28, 2025 and December 29, 2024, the fair value of the mutual fund investments and deferred compensation obligations were as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| | **Level 1** | **Level 1** |
| **Assets** - Investments designated for deferred compensation plan | | |
| &nbsp;&nbsp;Cash accounts | $875 | $988 |
| &nbsp;&nbsp;Mutual funds | 2128 | 2208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $3003 | $3196 |

---

As of September 28, 2025 and December 29, 2024, we had no Level 2 or Level 3 assets.

The deferred compensation investments and obligations are included in other assets, accrued expenses and other long-term liabilities in the consolidated balance sheets. Changes in the fair value of securities held in the rabbi trust are recognized as trading gains and losses and included in other income in the condensed consolidated statements of operations and offsetting increases or decreases in the deferred compensation obligation are recorded in accrued expenses and other long-term liabilities in the condensed consolidated balance sheets.

Refer to Note 8. Debt for additional information relating to the fair value of the Company's outstanding debt instruments.

**Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis**

Assets and liabilities that are measured at fair value on a non-recurring basis include property and equipment, net, operating lease assets, equity-method investment, goodwill and indefinite-lived intangible assets. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During the quarter and three quarters ended September 28, 2025, the Company recognized trade name impairment charges of $2.2 million, included within other loss (income), net in the consolidated statement of operations. Refer to Note 2. Summary Of Significant Accounting Policies for further information. There were no impairment charges recognized during the quarter and three quarters ended September 29, 2024.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 14

------

**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 8. &nbsp;&nbsp;&nbsp;&nbsp;DEBT** 

Debt consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **September 28, 2025** | **December 29, 2024** |
| Term Loan | $248438 | $288750 |
| Revolver Facility | 77000 | 25000 |
| Unamortized discount and debt issuance costs | (2820) | (2078) |
| Total debt, net | 322618 | 311672 |
| Less: Short-term debt | (77000) | (25000) |
| Less: Current portion of long-term debt | (6250) | (11250) |
| Long-term debt, net | $239368 | $275422 |

---

**2025 Credit Agreement**

On January 27, 2025 (the "2025 Credit Agreement Closing Date"), PHD Intermediate LLC ("Holdings"), Portillo's Holdings LLC (the "Borrower"), the other Guarantors party thereto, the Lenders from time to time party thereto and Fifth Third Bank, National Association, as Administrative Agent (in such capacities, the "Administrative Agent"), the L/C Issuer and the Swing Line Lender entered into an amendment (the "Amendment") to the credit agreement, dated as of February 2, 2023 (the "Existing Credit Agreement" and the Existing Credit Agreement as amended by the Amendment and as may be amended, restated, supplemented or otherwise modified from time to time thereafter, the "2025 Credit Agreement"), by and among Holdings, the Borrower, the other Guarantors from time to time party thereto, the Lenders from time to time party thereto and the Administrative Agent. The arrangement was accounted for as a debt modification.

The Existing Credit Agreement provided for a term A loan (the "2023 Term Loan") in an initial aggregate principal amount of $300.0 million and revolving credit commitments in an initial aggregate principal amount of $100.0 million (the "2023 Revolver Facility"). The Amendment provides for, among other things, (i) a $250 million term loan A facility (the "2025 Term Loan") and (ii) revolving credit commitments in an initial aggregate principal amount of $150 million (the "2025 Revolver Facility" and, together with the Term Loan Facility, the "2025 Facilities"). The loans under each of the 2025 Facilities mature on January 27, 2030.

The 2023 Term Loan and 2023 Revolver Facility accrued, and the 2025 Term Loan and 2025 Revolver Facility accrue interest at the forward-looking secured overnight financing rate ("SOFR") plus an applicable rate determined upon the consolidated total net rent adjusted leverage ratio, in each case subject to a 0.00% floor.

As of September 28, 2025, the interest rate on the 2025 Term Loan and 2025 Revolver Facility was 6.55% and 6.57%, respectively. Pursuant to the 2025 Credit Agreement, as of September 28, 2025, the commitment fees to maintain the 2025 Revolver Facility were 0.20%, and letter of credit fees were 2.25%. Commitment fees and letter of credit fees are recorded as interest expense in the condensed consolidated statements of operations. As of September 28, 2025, the effective interest rate was 6.90%.

As of September 29, 2024, the interest rates on the 2023 Term Loan and 2023 Revolver Facility were 7.98% and 7.85%, respectively. Pursuant to the Existing Credit Agreement as of September 29, 2024, the commitment fees to maintain the 2023 Revolver Facility were 0.20% and letter of credit fees were 2.50%. As of September 29, 2024, the effective interest rate was 8.32%.

The 2025 Term Loan Facility will amortize in quarterly installments, commencing on the last day of the first full fiscal quarter ended after the 2025 Credit Agreement Closing Date, equaling an aggregate amount of $6.3 million for the first 2 years following the 2025 Credit Agreement Closing Date, (ii) $12.5 million for the third and fourth years following the 2025 Credit Agreement Closing Date and (iii) $25.0 million for the fifth year following the 2025 Credit Agreement Closing Date, with the balance payable on the final maturity date.

As of September 28, 2025, outstanding borrowings under the 2025 Credit Agreement totaled $325.4 million, comprised of $248.4 million under the 2025 Term Loan, and $77.0 million under the 2025 Revolver Facility. Letters of credit issued under the 2025 Revolver Facility totaled $4.4 million. As a result, as of September 28, 2025, the Company had $68.6 million available under the 2025 Revolver Facility.

As of December 29, 2024, outstanding borrowings under the Existing Credit Agreement totaled $313.8 million, comprised of $288.8 million under the 2023 Term Loan, and $25.0 million under the 2023 Revolver Facility. Letters of credit issued under the 2023 Revolver Facility totaled $5.3 million. As a result, as of December 29, 2024, the Company had $69.7 million available under the 2023 Revolver Facility. All amounts

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 15

------

**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

outstanding under the 2023 Term Loan and 2023 Revolver Facility were refinanced in connection with the Amendment.

**Discount, Debt Issuance Costs and Interest Expense**

Pursuant to the 2025 Credit Agreement, the Company capitalized deferred financing costs and issuance discounts of $1.3 million. The remaining unamortized costs under the 2023 Credit Agreement were $2.0 million. The total deferred financing costs and issuance discounts of $3.3 million will be amortized over the term of the 2025 Credit Agreement.

The Company amortized an immaterial amount of deferred financing costs during both the quarters ended September 28, 2025 and September 29, 2024, and $0.1 million of deferred financing costs during both the three quarters ended September 28, 2025 and September 29, 2024, which is included in interest expense in the condensed consolidated statements of operations. In addition, the Company amortized $0.2 million and $0.4 million in original issue discount related to the long-term debt during the quarter and three quarters ended September 28, 2025, respectively, and $0.2 million and $0.5 million in the quarter and three quarters ended September 29, 2024, respectively, which is included in interest expense in the condensed consolidated statements of operations.

Total interest expense was $5.7 million and $17.1 million for the quarter and three quarters ended September 28, 2025, respectively, and $6.5 million and $19.6 million for the quarter and three quarters ended September 29, 2024, respectively.

**Fair Value of Debt**

As of September 28, 2025 and December 29, 2024, the fair value of long-term debt approximates the carrying value as it is variable rate debt. The fair value measurement of this debt is considered Level 2 of the fair value hierarchy as inputs to interest are observable, unadjusted quoted prices in active markets for similar assets or liabilities.

**Guarantees and Covenants**

The 2025 Credit Agreement contains customary representations and warranties, events of default, reporting and other affirmative covenants and negative covenants, including limitations on indebtedness, liens, investments, negative pledges, dividends, junior financings and other fundamental changes. The 2025 Facilities are guaranteed, subject to customary exceptions, by all of the Borrower's wholly-owned domestic restricted subsidiaries and Holdings, and are secured by a lien on substantially all of the Borrower's assets, including fixed assets and intangibles, and the assets of the Guarantors, in each case, subject to customary exceptions. Failure to comply with these covenants and restrictions could result in an event of default under the 2025 Credit Agreement. In such an event, all amounts outstanding under the 2025 Credit Agreement, together with any accrued interest, could then be declared immediately due and payable.

As of September 28, 2025, the Company was in compliance with the financial covenants in the 2025 Credit Agreement.

**NOTE 9. &nbsp;&nbsp;&nbsp;&nbsp;NON-CONTROLLING INTERESTS**

We are the sole managing member of Portillo's OpCo, and as a result, consolidate the financial results of Portillo's OpCo. We report a non-controlling interest to reflect the entitlement of the pre-IPO LLC Members who retained their equity ownership in Portillo's OpCo (the "pre-IPO LLC Members"). Changes in our ownership interest in Portillo's OpCo while we retain our controlling interest in Portillo's OpCo will be accounted for as equity transactions. As such, future redemptions or direct exchanges of LLC Units in Portillo's OpCo by the pre-IPO LLC members will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital.

The following table summarizes the LLC interest ownership by Portillo's Inc. and pre-IPO LLC members:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 28, 2025** | **September 28, 2025** | **December 29, 2024** | **December 29, 2024** |
| | **LLC Units** | **Ownership %** | **LLC Units** | **Ownership %** |
| Portillo's Inc. | 71924160 | 95.4% | 63674579 | 85.6% |
| pre-IPO LLC Members | 3442335 | 4.6% | 10732800 | 14.4% |
| Total | 75366495 | 100.0% | 74407379 | 100.0% |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 16

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to Portillo's Inc. and the pre-IPO LLC Members. The pre-IPO LLC Members' weighted average ownership percentage for the quarter and three quarters ended September 28, 2025 was 4.6% and 9.6%, respectively. The pre-IPO LLC Members' weighted average ownership percentage for the quarter and three quarters ended September 29, 2024 was 15.8% and 17.7%, respectively.

The following table summarizes the effects of changes in ownership in Portillo's OpCo on the Company's equity (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Net income attributable to Portillo's Inc.  | $1214 | $7220 | $13231 | $18252 |
| &nbsp;&nbsp;Activity under equity-based compensation plans | 1 | 1522 | 2141 | 2690 |
| &nbsp;&nbsp;Non-controlling interest adjustment | (553) | 892 | 60910 | 47770 |
| &nbsp;&nbsp;Redemption of LLC Units |  | (1) | (73) | (59) |
| &nbsp;&nbsp;Establishment of liabilities under Tax Receivable Agreement and related changes to deferred tax assets associated with increases in tax basis |  | (335) | (21805) | (16248) |
| Total effect of changes in ownership interest on equity attributable to Portillo's Inc. | $662 | $9298 | $54404 | $52405 |

---

The Company entered into a joint venture agreement to develop and operate a restaurant at DFW airport, which is expected to commence operations in 2026. The Company holds a 65% ownership interest in AP Dogs. In the quarter ended September 28, 2025, $0.1 million of contributions from non-controlling interests were received.

**NOTE 10.&nbsp;&nbsp;&nbsp;&nbsp;EQUITY-BASED COMPENSATION** 

Equity-based compensation expense is calculated based on equity awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment to equity-based compensation expense will be recognized at that time.

Equity-based compensation expense included in the Company's consolidated statements of operations is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Labor | $492 | $568 | $1350 | $1522 |
| General and administrative | (812) | 2938 | 2938 | 7701 |
| Total equity-based compensation (benefit) expense | $(320) | $3506 | $4288 | $9223 |

---

The Company's Chief Executive Officer departed from his role, effective September 21, 2025. In connection with his separation from the Company, Mr. Osanloo and the Company entered into a Separation Agreement and Release (the "Separation Agreement"). In accordance with the Separation Agreement, Mr. Osanloo's outstanding stock option awards granted to him on October 1, 2018 under the 2014 Equity Incentive Plan will remain exercisable through the 10th anniversary of the original grant date. The modification was to extend the permitted time for which the options could be exercised subsequent to termination, from 90 days to October 1, 2028. The Company recorded a $2.4 million charge to equity-based compensation expense during the quarter and three quarters ended September 28, 2025, to reflect the incremental value related to the modification described herein. All other equity grants were forfeited, resulting in a credit of previously-recognized equity-based compensation expense of $5.0 million.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 17

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Restricted Stock Units**

During the three quarters ended September 28, 2025, the Company granted 689,041 RSUs, under the Portillo's Inc. 2021 Equity Incentive Plan (the "2021 Plan") to certain employees. During the three quarters ended September 28, 2025, we also granted 93,725 RSUs to non-employee directors under the 2021 Plan. The weighted average fair value of these awards was determined using the Company's closing stock price on the applicable grant dates, which was $11.55. The RSUs granted to employees will generally vest one-third on each of the first three anniversaries of the date of grant subject to continued service on such date. The RSUs granted to non-employee directors will vest at the end of this year.

**Stock Options**

During the three quarters ended September 28, 2025, the Company granted 307,692 stock options under the 2021 Plan, to its former President and Chief Executive Officer. In accordance to the Separation Agreement, all of Mr. Osanloo's stock options granted under the 2021 Plan were forfeited effective September 21, 2025.

**Performance Stock Units**

During the three quarters ended September 28, 2025, the Company granted 301,118 performance stock units ("PSUs") to its executive officers under the 2021 Plan. These PSUs will vest after the fiscal year ending December 26, 2027 based on continued service and the achievement of performance metrics. The amount of awards that can be earned ranges from 0% to 200% of the number of performance stock units granted, based on the achievement of approved financial goals tied to the cumulative growth of revenue and Adjusted EBITDA from fiscal year 2025 to fiscal year 2027. The fair value of these awards was determined using the Company's closing stock price on the date of grant of $12.08. Equity-based compensation costs associated with these PSUs are reassessed each reporting period based on estimated performance achievement. The cumulative effect on current and prior periods of a change in attainment is recognized in general and administrative expenses in the consolidated statements of operations in the period of change.

**NOTE 11.&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES**

We are the sole managing member of Portillo's OpCo, and as a result, consolidate the financial results of Portillo's OpCo. Portillo's OpCo is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Portillo's OpCo is generally not subject to U.S. federal and state and local income taxes. Any taxable income or loss generated by Portillo's OpCo is passed through to and included in the taxable income or loss of its members, including us, based upon the respective member's ownership percentage in Portillo's OpCo. We are subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income or loss of Portillo's OpCo, as well as any stand-alone income or loss generated by Portillo's Inc.

**Income Tax Expense**

The effective income tax rate for the quarter and three quarters ended September 28, 2025 was 268.2% and 20.4%, respectively, and 22.4% and 17.8%, respectively, for the quarter and three quarters ended September 29, 2024. The increase in our effective income tax rate for the quarter ended September 28, 2025 compared to the quarter ended September 29, 2024 was primarily driven by the decrease in the valuation allowance related to the separation of Mr. Osanloo. This increases the effective income tax rate because the Company recorded a pre-tax loss for the quarter ended September 28, 2025. The increase in our effective income tax rate for the three quarters ended September 28, 2025 compared to the three quarters ended September 29, 2024 was primarily driven by an increase in the Company's ownership interest in Portillo's OpCo, which increases its share of taxable income (loss) of Portillo's OpCo. The Company's annual effective tax rate differs from the statutory rate of 21% primarily because of state and local taxes, deferred tax adjustments and impacts from equity-based award activity partially offset by the portion of Portillo's OpCo earnings that are attributable to non-controlling interest that the Company is not liable for federal or state income taxes.

We evaluate the realizability of our deferred tax assets on a quarterly basis and establish valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of September 28, 2025, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets relating to the basis difference in its investment in Portillo's OpCo that will never be realizable or only reverse upon the eventual sale of its interest in Portillo's OpCo, which we expect would result in a capital loss which we do not expect to be able to utilize) are more likely than not to be realized.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 18

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Tax Receivable Agreement**

As of September 28, 2025, we estimated that our obligation for future payments under the TRA liability totaled $353.2 million. During the three quarters ended September 28, 2025 and September 29, 2024, the Company made TRA payments of $7.7 million relating to tax year 2023 and $4.4 million relating to tax year 2022, respectively. We expect a payment of $7.8 million relating to tax year 2024 to be paid within the next 12 months.

**One Big Beautiful Bill Act**

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have evaluated the potential effects of the relevant provisions of the Act and do not expect a significant financial statement impact as a result of the Act.

**NOTE 12.&nbsp;&nbsp;&nbsp;&nbsp;EARNINGS PER SHARE** 

Basic net earnings per share of Class A common stock is computed by dividing net income attributable to Portillo's Inc. by the weighted-average number of Class A common stock outstanding.

Diluted net earnings per share is computed by dividing net income attributable to Portillo's Inc. by the weighted-average number of dilutive securities, using the treasury stock method.

The computations of basic and diluted earnings per share for the quarter and three quarters ended quarters ended September 28, 2025 and September 29, 2024 are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Net income | $782 | $8773 | $14815 | $22647 |
| Net (loss) income attributable to non-controlling interests | (432) | 1553 | 1584 | 4395 |
| Net income attributable to Portillo's Inc. | $1214 | $7220 | $13231 | $18252 |
| Shares: |  |  |  |  |
| Weighted-average number of common shares outstanding-basic | 71909 | 61922 | 67781 | 60336 |
| Dilutive share awards | 2065 | 2973 | 2351 | 3011 |
| Weighted-average number of common shares outstanding-diluted | 73974 | 64895 | 70131 | 63348 |
| Basic net income per share | $0.02 | $0.12 | $0.20 | $0.30 |
| Diluted net income per share | $0.02 | $0.11 | $0.19 | $0.29 |

---

Shares of the Company's Class B Common Stock do not participate in the earnings or losses of Portillo's Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B Common Stock under the two-class method has not been presented.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 19

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

The following shares were excluded from the calculation of diluted earnings per share because they would be antidilutive or subject to performance conditions which have not been satisfied by the end of the reporting period (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Performance Stock Options  | 734 | 2109 | 734 | 2109 |
| Performance Stock Units  | 259 | 296 | 259 | 296 |
| Restricted Stock Units | 942 | 133 | 52 | 141 |
| Stock Options |  | 318 |  | 318 |
| Total shares excluded from diluted net income per share | 1935 | 2856 | 1045 | 2864 |

---

**NOTE 13.&nbsp;&nbsp;&nbsp;&nbsp;CONTINGENCIES**

The Company is party to legal proceedings and potential claims arising in the normal conduct of business, including claims related to employment matters, contractual disputes, customer injuries, and property damage. Although the ultimate outcome of these claims and lawsuits cannot be predicted with certainty, management believes that the resulting liability, including as a result of the matter described below, if any, will not have a material effect on the Company's condensed consolidated financial statements.

On September 3, 2024, a former team member from one of the Company's two California restaurants filed a class action lawsuit alleging wage and hour violations and unfair competition, as well as claims under the California Private Attorneys General Act ("PAGA"). At this time a loss is reasonably possible but not estimable, and as a result, no litigation reserve has been recorded on our condensed consolidated balance sheet as of September 28, 2025.

**NOTE 14.&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT INFORMATION**

The Company's chief operating decision maker (the "CODM") is its Interim Chief Executive Officer. As the CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis, the Company has one operating segment and one reportable segment.

The CODM allocates resources and assesses performance of the Company based on net income (loss), as reported on the condensed consolidated statement of operations, which as the segment measure of profit and loss that is closest to GAAP, is the required segment measure. Net income was $0.8 million and $14.8 million for the quarter and three quarters ended September 28, 2025, respectively, and $8.8 million and $22.6 million for the quarter and three quarters ended September 29, 2024, respectively. In addition to net income (loss), the CODM also reviews revenue, operating income (loss), restaurant-level adjusted EBITDA, and adjusted EBITDA.

The CODM reviews these measures (i) to evaluate the Company's operating results and the effectiveness of business strategies, (ii) internally as benchmarks to compare the Company's performance to its competitors and (iii) as factors in evaluating management's performance when determining incentive compensation. Additionally, the Company believes these measures are important to evaluate the performance and profitability of our restaurants, individually and in the aggregate.

The CODM does not review segment assets and segment expenses at a level different than what is reported in the Company's condensed consolidated balance sheet and condensed consolidated statement of operations. Additionally, the CODM regularly receives information about the Company's capital expenditures which are reported in the Company's condensed consolidated statement of cash flows as purchase of property and equipment under investing activities.

No guest accounts for 10% or more of our revenues.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 20

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**PORTILLO'S INC.**

**NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 15.&nbsp;&nbsp;&nbsp;&nbsp;RELATED PARTY TRANSACTIONS**

As of September 28, 2025 and December 29, 2024 the related parties' receivables balance consisted of $0.4 million and $0.3 million, respectively, due from C&O, which is included in accounts and tenant improvement receivables in the condensed consolidated balance sheets.

**Olo, Inc.**

Noah Glass, a member of the Company's Board, is the founder and CEO of Olo, Inc. ("Olo"), a platform the Company uses in connection with our mobile ordering application and delivery.

The Company incurred the following Olo-related costs for the quarter and three quarters ended September 28, 2025 and September 29, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Food, beverage and packaging costs | $446 | $481 | $1430 | $1495 |
| Other operating expenses | 143 | 107 | 436 | 347 |
| Total Olo-related costs | $589 | $588 | $1866 | $1842 |

---

As of September 28, 2025 and December 29, 2024, $0.3 million and $0.4 million, respectively, were payable to Olo and were included in accounts payable in the condensed consolidated balance sheets.

**Tax Receivable Agreement**

We are party to a TRA with certain members of Portillo's OpCo that provides for the payment by us of 85% of the amount of tax benefits, if any, that Portillo's Inc. actually realizes or in some cases is deemed to realize as a result of certain transactions. During the three quarters ended September 28, 2025 and September 29, 2024, the Company made TRA payments of $7.7 million relating to tax year 2023 and $4.4 million relating to tax year 2022, respectively. We expect a payment of $7.8 million relating to tax year 2024 to be paid within the next 12 months.

---

| | | |
|:---|:---|:---|
| (in thousands) | **September 28, 2025** | **December 29, 2024** |
| Current portion of Tax Receivable Agreement liability | $7766 | $7686 |
| Tax receivable agreement liability | 345480 | 316893 |

---

**Redemption of LLC Units**

During the three quarters ended September 28, 2025, certain pre-IPO Members affiliated with Berkshire Partners LLC redeemed 7,290,465 LLC units in the aggregate for newly-issued shares of Class A common stock on a one-for-one basis, in accordance with the terms of the Second Amended and Restated LLC agreement of Portillo's OpCo, dated as of October 20, 2021. Berkshire Partners LLC and its affiliates beneficially own approximately 5.2% of the Company as of September 28, 2025.

**Transactions with Non-Controlling Interest Holders**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| (in thousands) | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Distributions paid to non-controlling interest holders | $— | $— | $1291 | $838 |
| Contributions from non-controlling interest holders | $140 | $— | $140 | $— |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 21

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<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

![banner.jpg](ptlo-20250928_g2.jpg)

The following discussion contains, in addition to historical information, forward-looking statements that include risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under the heading "Cautionary Statements Concerning Forward-Looking Statements" in this report and under the heading "Risk Factors" in Part I, Item IA of our Annual Report on Form 10-K for the fiscal year ended December 29, 2024 and Part II, Item 1A of this Form 10-Q. The following discussion should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 29, 2024 and the condensed consolidated financial statements and notes thereto included in Part I, Item 1 of this Form 10-Q. All information presented herein is based on our fiscal calendar. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years and the associated quarters, months and periods of those fiscal years.

Although we believe that the expectations reflected in the forward-looking statements are reasonable based on our current knowledge of our business and operations, we cannot guarantee future results, levels of activity, performance or achievements. We assume no obligation to provide revisions to any forward-looking statements should circumstances change.

The following discussion summarizes the significant factors affecting the condensed consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below.

We have prepared the unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC").

**Overview**

Portillo's serves iconic Chicago street food in high-energy, multichannel restaurants designed to ignite the senses and create memorable dining experiences. Since our founding in 1963 in a small trailer called "The Dog House," we have grown to become a treasured brand with a passionate (some might say obsessed) nationwide following. Our diverse menu features all-American favorites such as Chicago-style hot dogs and sausages, Italian beef sandwiches, char-broiled burgers, fresh chopped salads, crinkle-cut fries, homemade chocolate cake and our signature chocolate cake shake. We create a consumer experience like no other by combining the best attributes of fast-casual and quick-service concepts with an exciting energy-filled atmosphere in a restaurant model capable of generating tremendous volumes. Nearly all of our restaurants were built with double lane drive-thrus and have been thoughtfully designed with a layout that accommodates a variety of access modes including dine-in, carryout, delivery and catering to quickly and efficiently serve our guests. We believe the combination of our craveable food, multichannel sales model, dedication to operational excellence, and distinctive team member-driven culture gives us a competitive advantage.

As of September 28, 2025, we owned and operated 98 Portillo's restaurants across ten states, including a restaurant owned by C&O Chicago, L.L.C. ("C&O") of which Portillo's owns 50% of the equity.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 22

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**Financial Highlights for the Quarter Ended September 28, 2025 vs. Quarter Ended September 29, 2024:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $181.4 million, an increase of 1.8% or $3.2 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Same-restaurant sales decrease of -0.8%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income of $5.4 million, a decrease of $10.6 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $0.8 million, a decrease of $8.0 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Restaurant-Level Adjusted EBITDA\* of $36.7 million, a decrease of $5.3 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA\* of $21.4 million, a decrease of $6.5 million

**Financial Highlights for the Three Quarters Ended September 28, 2025 vs. Three Quarters Ended September 29, 2024:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $546.3 million, an increase of 3.9% or $20.4 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Same restaurant sales increase of +0.5%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income of $33.3 million, a decrease of $10.9 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $14.8 million, a decrease of $7.8 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Restaurant-Level Adjusted EBITDA\* of $117.8 million, a decrease of $5.1 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA\* of $72.7 million, a decrease of $6.9 million

\* Adjusted EBITDA and Restaurant-Level Adjusted EBITDA are non-GAAP measures. Definitions and reconciliations of Adjusted EBITDA to net income (loss) and Restaurant-Level Adjusted EBITDA to operating income the most directly comparable financial measures presented in accordance with GAAP, are set forth under the section "Key Performance Indicators and Non-GAAP Financial Measures".

**Recent Developments and Trends**

On September 10, 2025, we announced a strategic reset of our development and growth plans to sharpen focus on our core markets, enhance unit economics, and position the Company for sustained success. The initiatives we announced directly align with these priorities and are anchored by the four goals below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Drive transactions by reinforcing value and service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Simplify operations, including the discontinuation of our Chicago breakfast pilot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sharpen focus with a more measured pace of new restaurant growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Optimize capital deployment to position Portillo's for positive free cash flow in 2026.

Additionally, on September 22, 2025, the Company's Board of Directors (the "Board") announced the departure of Michael Osanloo from his role as President and Chief Executive Officer ("CEO") of the Company, effective September 21, 2025. In the interim, the Board appointed Mike Miles, as CEO of the Company, effective September 21, 2025. Mr. Miles serves as Chairman of the Board, where he has been a member since 2014. As previously disclosed, the Board has initiated a process to identify the Company's next CEO and has hired a global executive search firm to assist in the CEO search processes.

In the quarter and three quarters ended September 28, 2025, total revenue grew 1.8% or $3.2 million and 3.9% or $20.4 million, respectively, primarily due to new restaurant openings in 2024 and 2025. Same-restaurant sales declined 0.8% during the quarter ended September 28, 2025, compared to a 0.9% same-restaurant sales decline during the quarter ended September 29, 2024. Same-restaurant sales increased 0.5% during the three quarters ended September 28, 2025, compared to a 0.9% same-restaurant sales decline during the three quarters ended September 29, 2024. Refer to "Selected Operating Data" section below for definition of Same-Restaurant Sales.

In the quarter and three quarters ended September 28, 2025, commodity inflation was 6.3% and 3.9%, respectively, compared to 3.6% and 5.1% for the quarter and three quarters ended September 29, 2024, respectively. Labor, as a percentage of revenue, net, increased 0.8% and 0.5% during the quarter and three quarters ended September 28, 2025, respectively, compared to the quarter and three quarters ended September 29, 2024, primarily due to lower transactions, incremental wage rate increases, higher benefit costs, and deleverage from our newer restaurant openings, partially offset by a higher average check and labor efficiencies. We increased certain menu prices by approximately 1.5% in January 2025, 1.0% in April 2025, and 0.7% in June 2025.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 23

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**Development Highlights**

During the quarter ended September 28, 2025, we opened four restaurants. Subsequent to September 28, 2025, we opened one additional restaurant, bringing our total restaurant count to 99, as of the filing of this Quarterly Report on Form 10-Q, including a restaurant owned by C&O of which Portillo's owns 50% of the equity. We plan to open three more restaurants in the fourth quarter, including our first restaurant in Georgia, for a total of 8 new restaurants opened in the fiscal year 2025.

During the third quarter, we opened our first in-line restaurant format. With the exception of the one in-line restaurant, all new restaurant openings in 2025 will be our "Restaurant of the Future" (RoTF 1.0) design, which is a smaller square footage prototype featuring a shorter, more efficient production line designed to reduce cost and provide excellent service to our guests.

Below are the restaurants opened since the beginning of fiscal 2025:

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| | | |
|:---|:---|:---|
| **Location** | **Opening Month** | **Fiscal Quarter Opened** |
| Tomball, Texas | July 2025 | Q3 2025 |
| Stafford, Texas | August 2025 | Q3 2025 |
| Grand Prairie, Texas | August 2025 | Q3 2025 |
| Middleton, Florida (In-Line) | August 2025 | Q3 2025 |
| Chandler, Arizona | November 2025 | Q4 2025 |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 24

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<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

**Consolidated Results of Operations**

The following table summarizes our results of operations for the quarter and three quarters ended September 28, 2025 and September 29, 2024 (in thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 28, 2025** | **September 29, 2024** | **September 29, 2024** | **September 28, 2025** | **September 28, 2025** | **September 29, 2024** | **September 29, 2024** |
| **REVENUES, NET** | $181428 | 100.0% | $178252 | 100.0% | $546321 | 100.0% | $525945 | 100.0% |
| **COST AND EXPENSES:** |  |  |  |  |  |  |  |  |
| Restaurant operating expenses: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Food, beverage and packaging costs | 62619 | 34.5% | 60136 | 33.7% | 187471 | 34.3% | 178809 | 34.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Labor | 48263 | 26.6% | 45945 | 25.8% | 143471 | 26.3% | 135659 | 25.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy | 10524 | 5.8% | 9172 | 5.1% | 30511 | 5.6% | 27723 | 5.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 23331 | 12.9% | 21053 | 11.8% | 67040 | 12.3% | 60868 | 11.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total restaurant operating expenses** | 144737 | 79.8% | 136306 | 76.5% | 428493 | 78.4% | 403059 | 76.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 20025 | 11.0% | 18305 | 10.3% | 57726 | 10.6% | 54786 | 10.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-opening expenses | 3260 | 1.8% | 1747 | 1.0% | 5465 | 1.0% | 5270 | 1.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 7312 | 4.0% | 6679 | 3.7% | 21489 | 3.9% | 20729 | 3.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to equity method investment | (452) | (0.2)% | (383) | (0.2)% | (998) | (0.2)% | (923) | (0.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other loss (income), net | 1112 | 0.6% | (390) | (0.2)% | 800 | 0.1% | (1176) | (0.2)% |
| **OPERATING INCOME** | 5434 | 3.0% | 15988 | 9.0% | 33346 | 6.1% | 44200 | 8.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 5664 | 3.1% | 6450 | 3.6% | 17139 | 3.1% | 19583 | 3.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (118) | (0.1)% | (50) | —% | (268) | —% | (204) | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax Receivable Agreement liability adjustment | 353 | 0.2% | (1724) | (1.0)% | (2132) | (0.4)% | (2724) | (0.5)% |
| **(LOSS) INCOME BEFORE INCOME TAXES** | (465) | (0.3)% | 11312 | 6.3% | 18607 | 3.4% | 27545 | 5.2% |
| Income tax (benefit) expense | (1247) | (0.7)% | 2539 | 1.4% | 3792 | 0.7% | 4898 | 0.9% |
| **NET INCOME** | 782 | 0.4% | 8773 | 4.9% | 14815 | 2.7% | 22647 | 4.3% |
| Net (loss) income attributable to non-controlling interests | (432) | (0.2)% | 1553 | 0.9% | 1584 | 0.3% | 4395 | 0.8% |
| **NET INCOME ATTRIBUTABLE TO PORTILLO'S INC.** | $1214 | 0.7% | $7220 | 4.1% | $13231 | 2.4% | $18252 | 3.5% |

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**Revenues, Net**

Revenues primarily represent the aggregate sales of food and beverages, net of discounts. Sales taxes collected from customers are excluded from revenues. Revenues in any period are directly influenced by, among other factors, the number of operating weeks in the period, the number of open restaurants, restaurant traffic, our menu prices, third-party delivery platform prices and product mix.

Revenues for the quarter ended September 28, 2025 were $181.4 million compared to $178.3 million for the quarter ended September 29, 2024, an increase of $3.2 million or 1.8%. The increase in revenues was primarily attributed to the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025, partially offset by a decrease in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base (as defined in "Selected Operating Data" below) contributed $5.6 million of the total year-over-year increase. Same-restaurant sales decreased 0.8%, or $1.2 million in the quarter. The same-restaurant sales decline was attributable to a 2.2% decrease in transactions, partially offset by an increase in average check of 1.4%. The higher average check was driven by an approximate 3.2% increase in certain menu prices, partially offset by a 1.8% decrease in product mix. For the purpose of calculating same-restaurant sales for the quarter ended September 28, 2025, sales for 76 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 25

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<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

The following table summarizes the Company's revenue for the quarter ended September 28, 2025 and September 29, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | | |
| | **September 28, 2025** | **September 29, 2024** |<br>**$ Change** |<br>**% Change** |
| Same-restaurant sales (76 restaurants) <sup>(1)</sup> | $157444 | $158675 | $(1231) | (0.8)% |
| Restaurants not yet in comparable base opened in fiscal 2025 (4 restaurants) <sup>(1)</sup> | 2445 |  | 2445 | nm |
| Restaurants not yet in comparable base opened in fiscal 2024 (10 restaurants) <sup>(1)</sup> | 9413 | 5370 | 4043 | 75.3% |
| Restaurants not yet in comparable base opened in fiscal 2023 (7 restaurants) <sup>(1)</sup> | 10695 | 11539 | (844) | (7.3)% |
| Other <sup>(2)</sup> | 1431 | 2668 | (1237) | (46.4)% |
| Revenues, net | $181428 | $178252 | $3176 | 1.8% |

---

<sup>(1)</sup> Total restaurants indicated are as of September 28, 2025. Excludes a restaurant that is owned by C&O of which Portillo's owns 50% of the equity.

<sup>(2)</sup> Includes revenue from direct shipping sales and non-traditional locations.

Revenues for the three quarters ended September 28, 2025 were $546.3 million compared to $525.9 million for the three quarters ended September 29, 2024, an increase of $20.4 million or 3.9%. The increase in revenues was primarily attributed to the opening of ten restaurants in 2024 and four restaurants in 2025 and an increase in our same-restaurant sales. Restaurants not in our Comparable Restaurant Base contributed $19.6 million of the total year-over-year increase. Same-restaurant sales increased 0.5%, or $2.5 million. The same-restaurant sales increase was attributable to an increase in average check of 2.7%, partially offset by a 2.2% decrease in transactions. The higher average check was primarily driven by an approximate 3.5% increase in menu prices, partially offset by a 0.8% decrease in product mix. To address inflationary cost pressures, we increased select menu prices by approximately 1.5% in January 2025, 1.0% in April 2025, and 0.7% in June 2025. For the purpose of calculating same-restaurant sales for the three quarters ended September 28, 2025, sales for 76 restaurants that were open for at least 24 full fiscal periods were included in the Comparable Restaurant Base.

The following table summarizes the Company's revenue for the three quarters ended September 28, 2025 and September 29, 2024 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Quarters Ended** | **Three Quarters Ended** | | |
| | **September 28, 2025** | **September 29, 2024** |<br>**$ Change** |<br>**% Change** |
| Same-restaurant sales (76 restaurants) <sup>(1)</sup> | $468150 | $465675 | $2475 | 0.5% |
| Restaurants not yet in comparable base opened in fiscal 2025 (4 restaurants) <sup>(1)</sup> | 2445 |  | 2445 | nm |
| Restaurants not yet in comparable base opened in fiscal 2024 (10 restaurants) <sup>(1)</sup> | 31838 | 8782 | 23056 | 262.5% |
| Restaurants not yet in comparable base opened in fiscal 2023 (7 restaurants) <sup>(1)</sup> | 37242 | 43125 | (5883) | (13.6)% |
| Other <sup>(2)</sup> | 6646 | 8363 | (1717) | (20.5)% |
| Revenues, net | $546321 | $525945 | $20376 | 3.9% |

---

<sup>(1)</sup> Total restaurants indicated are as of September 28, 2025. Excludes a restaurant that is owned by C&O of which Portillo's owns 50% of the equity.

<sup>(2)</sup> Includes revenue from direct shipping sales and non-traditional locations.

**Food, Beverage and Packaging Costs**

Food, beverage and packaging costs include the direct costs associated with food and beverages, including packaging products and third-party delivery commissions. The components of food, beverage and packaging costs are variable by nature, change with sales volume, are impacted by product mix and are subject to increases or decreases in commodity costs, as well as geographic scale and proximity*.* 

Food, beverage and packaging costs for the quarter ended September 28, 2025 were $62.6 million compared to $60.1 million for the quarter ended September 29, 2024, an increase of $2.5 million or 4.1%. This increase was primarily driven by a 6.3% increase in commodity prices and the opening of eight restaurants during the third and fourth quarters of 2024 and four restaurants in 2025. As a percentage of revenues, net, food, beverage and packaging costs increased 0.8% during the quarter ended September 28, 2025. The increase was primarily due to an increase in certain commodity prices, partially offset by an increase in average check.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 26

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<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

Food, beverage and packaging costs for the three quarters ended September 28, 2025 was $187.5 million compared to $178.8 million for the three quarters ended September 29, 2024, an increase of $8.7 million or 4.8%. This increase was primarily driven by a 3.9% increase in commodity prices and the opening of ten restaurants in 2024 and four restaurants in 2025. As a percentage of revenues, net, food, beverage and packaging costs increased 0.3% during the three quarters ended September 28, 2025. The increase was primarily due to an increase in certain commodity prices, partially offset by an increase in average check.

**Labor Expenses**

Labor expenses include hourly and management wages, bonuses and equity-based compensation, payroll taxes, workers' compensation expense, and team member benefits. Factors that influence labor costs include wage inflation and payroll tax legislation, health care costs and the staffing needs of our restaurants*.* 

Labor expenses for the quarter ended September 28, 2025 were $48.3 million compared to $45.9 million for the quarter ended September 29, 2024, an increase of $2.3 million or 5.0%. This increase was primarily driven by the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025, and incremental investments to support our team members. As a percentage of revenues, net, labor increased 0.8% during the quarter ended September 28, 2025. The increase was primarily due to lower transactions, incremental wage increases, higher benefit costs, and deleverage from our newer restaurant openings, partially offset by an increase in our average check and labor efficiencies.

Labor expenses for the three quarters ended September 28, 2025 were $143.5 million compared to $135.7 million for the three quarters ended September 29, 2024, an increase of $7.8 million or 5.8%. This increase was primarily driven by the opening of ten restaurants in 2024 and four restaurants in 2025, an increase in benefit expenses, and incremental investments to support our team members. As a percentage of revenues, net, labor increased 0.5% primarily due to lower transactions, higher benefit costs, incremental wage increases, and deleverage from our newer restaurant openings, partially offset by labor efficiencies and an increase in our average check.

**Occupancy Expenses**

Occupancy expenses primarily consist of rent, property insurance and property taxes, and exclude occupancy expenses associated with unopened restaurants, which are recorded separately in pre-opening expenses.

Occupancy expenses for the quarter ended September 28, 2025 were $10.5 million compared to $9.2 million for the quarter ended September 29, 2024, an increase of $1.4 million or 14.7%, primarily driven by the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025. As a percentage of revenues, net, occupancy expenses increased 0.7%.

Occupancy expenses for the three quarters ended September 28, 2025 were $30.5 million compared to $27.7 million for the three quarters ended September 29, 2024, an increase of $2.8 million or 10.1%, primarily driven by the opening of ten restaurants in 2024 and four restaurants in 2025. As a percentage of revenues, net, occupancy expenses increased 0.3%.

**Other Operating Expenses**

Other operating expenses consist of direct marketing expenses, utilities and other operating expenses incidental to operating our restaurants, such as credit card fees and repairs and maintenance.

Other operating expenses for the quarter ended September 28, 2025 were $23.3 million compared to $21.1 million for the quarter ended September 29, 2024, an increase of $2.3 million or 10.8%, primarily due to the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025, and an increase in repairs and maintenance, utilities, and advertising expense, partially offset by lower cleaning expenses due to vendor renegotiation. As a percentage of revenues, net, operating expenses increased 1.1% primarily due to the aforementioned increases in expenses, partially offset by an increase in our average check.

Other operating expenses for the three quarters ended September 28, 2025 were $67.0 million compared to $60.9 million for the three quarters ended September 29, 2024, an increase of $6.2 million or 10.1%, primarily due to the opening of ten restaurants in 2024 and four restaurants in 2025, and an increase in repairs and maintenance, utilities, and advertising expenses, partially offset by lower cleaning expenses due to vendor renegotiation. As a percentage of revenues, net, operating expenses increased 0.7% primarily due to the aforementioned increases in expenses, partially offset by an increase in our average check.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 27

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<u>[**Table of Contents**](#i0ad35552932744a18fed1a6b565f0dc1_7)</u>

**General and Administrative Expenses**

General and administrative expenses primarily consist of costs associated with our corporate and administrative functions that support restaurant development and operations, including marketing and advertising costs incurred as well as legal and professional fees. General and administrative expenses also include equity-based compensation expense. General and administrative expenses are impacted by changes in our team member count and costs related to strategic and growth initiatives.

General and administrative expenses for the quarter ended September 28, 2025 were $20.0 million compared to $18.3 million for the quarter ended September 29, 2024, an increase of $1.7 million or 9.4%. This increase was primarily driven by $3.3 million in dead site costs. This increase was partially offset by a $1.1 million net benefit resulting from the CEO transition. This benefit was due to the forfeiture of equity awards, offset by other transition expenses.

General and administrative expenses for the three quarters ended September 28, 2025 were $57.7 million compared to $54.8 million for the three quarters ended September 29, 2024, an increase of $2.9 million or 5.4%. This increase was primarily driven by $3.3 million in dead site cost as well as increases in software license fees related to our enterprise resource planning ("ERP") and human capital management ("HCM") system implementations. This increase was partially offset by a $1.1 million net benefit resulting from the CEO transition. This benefit was due to the forfeiture of equity awards, offset by other transition expenses.

**Pre-Opening Expenses**

Pre-opening expenses consist primarily of wages, occupancy expenses, which represent rent expense recognized during the period between the date of possession and the restaurant opening date, travel for the opening team and other supporting team members, food, beverage, the initial stocking of operating supplies and legal fees. All such costs incurred prior to the opening are expensed in the period in which the expense was incurred. Pre-opening expenses can fluctuate significantly from period to period, based on the number and timing of openings and the specific pre-opening expenses incurred for each restaurant. Additionally, restaurant openings in new geographic market areas will experience higher pre-opening expenses than our established geographic market areas, such as the Chicagoland area, where we have greater economies of scale and incur lower travel and lodging costs for our training team.

Pre-opening expenses for the quarter ended September 28, 2025 were $3.3 million compared to $1.7 million for the quarter ended September 29, 2024, an increase of $1.5 million or 86.6%. The increase was due to the number and timing of activities related to our planned restaurant openings for the quarter ended September 28, 2025 as compared to the quarter ended September 29, 2024.

Pre-opening expenses for the three quarters ended September 28, 2025 were $5.5 million compared to $5.3 million for the three quarters ended September 29, 2024, an increase of $0.2 million or 3.7%. This increase was due to the number and timing of activities related to our planned restaurant openings for the three quarters ended September 28, 2025 as compared to the three quarters ended September 29, 2024.

**Depreciation and Amortization**

Depreciation and amortization expenses consist of the depreciation of fixed assets, including land improvements, buildings and improvements, fixtures and equipment, leasehold improvements, and the amortization of definite-lived intangible assets, which are primarily comprised of recipes.

Depreciation and amortization expense for the quarter ended September 28, 2025 was $7.3 million compared to $6.7 million for the quarter ended September 29, 2024, an increase of $0.6 million or 9.5%. This increase was primarily attributable to incremental depreciation from capital expenditures related to the opening of eight restaurants in the third and fourth quarters of 2024 and four restaurants in 2025, offset by a reduction in depreciation expense due to fully depreciated assets and disposals compared to the prior year period.

Depreciation and amortization expense for the three quarters ended September 28, 2025 was $21.5 million compared to $20.7 million for the three quarters ended September 29, 2024, an increase of $0.8 million or 3.7%. This increase was primarily attributable to incremental depreciation of capital expenditures related to the opening of ten restaurants in 2024 and four restaurants in 2025, partially offset by a reduction in depreciation expense due to fully depreciated assets and disposals compared to the prior year period.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 28

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**Net Income Attributable to Equity Method Investment**

Net income attributable to equity method investment consists of a 50% interest in C&O, which runs a single restaurant located within the Chicagoland market. We account for the investment and financial results in the condensed consolidated financial statements under the equity method of accounting as we have significant influence but do not have control.

Net income attributable to equity method investment for the quarter ended September 28, 2025 was $0.5 million compared to $0.4 million for the quarter ended September 29, 2024, an increase of $0.07 million or 18.0%. This increase was primarily driven by an increase in sales.

Net income attributable to equity method investment for the three quarters ended September 28, 2025 was $1.0 million compared to $0.9 million for the three quarters ended September 29, 2024, an increase of $0.08 million or 8.1%. This increase was primarily driven by an increase in sales.

**Other Loss (Income), Net**

Other loss (income), net, includes among other items, income resulting from discounts received for timely filing of sales tax returns, management fee income associated with our investment in C&O, trading gains or losses on our deferred compensation plan, gains or losses on asset disposals, and asset impairment charges.

Other loss (income), net, for the quarter ended September 28, 2025 was a loss of $1.1 million compared to income of $0.4 million for the quarter ended September 29, 2024, a decrease of $1.5 million or 385.1%. This decrease was primarily attributable to a legacy Barnelli's trade name impairment charge and reduced sales tax filing discounts due to the new statutory cap implemented in Illinois on January 1, 2025, partially offset by a settlement received from a service provider regarding their performance.

Other loss (income), net, for the three quarters ended September 28, 2025 was a loss of $0.8 million compared to income of $1.2 million for the three quarters ended September 29, 2024, a decrease of $2.0 million or 168.0%. This decrease was primarily attributable to a legacy Barnelli's trade name impairment charge and reduced sales tax filing discounts due to the new statutory cap implemented in Illinois on January 1, 2025, partially offset by a settlement received from a service provider regarding their performance.

**Interest Expense**

Interest expense primarily consists of interest and fees on our credit facilities and the amortization expense for debt discount and deferred issuance costs.

Interest expense for the quarter ended September 28, 2025 was $5.7 million compared to $6.5 million for the quarter ended September 29, 2024, a decrease of $0.8 million or 12.2%. This decrease was primarily driven by a lower effective interest rate attributable to the improved lending terms associated with our 2025 Credit Agreement amendment.

Interest expense for the three quarters ended September 28, 2025 was $17.1 million compared to $19.6 million for the three quarters ended September 29, 2024, a decrease of $2.4 million or 12.5%. This decrease was primarily driven by a lower effective interest rate attributable to the improved lending terms associated with our 2025 Credit Agreement amendment.

Our effective interest rate was 6.90% as of September 28, 2025 and 8.32% as of September 29, 2024.

**Interest Income**

Interest income primarily consists of interest earned on our cash and cash equivalents.

Interest income for both the quarters ended September 28, 2025 and September 29, 2024 was $0.1 million.

Interest income for the three quarters ended September 28, 2025 was $0.3 million compared to $0.2 million for the three quarters ended September 29, 2024, an increase of $0.1 million or 31.4%.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 29

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**Tax Receivable Agreement Liability Adjustment**

We are party to a Tax Receivable Agreement liability with certain members of PHD Group Holdings LLC and its subsidiaries ("Portillo's OpCo") that provides for the payment by us of 85% of the amount of tax benefits, if any, that Portillo's Inc. actually realizes or in some cases is deemed to realize as a result of certain transactions. On January 24, 2025, we entered into an Amendment to the Tax Receivable Agreement (the "Amendment") with Portillo's OpCo and the TRA Party Representative, as defined in the agreement. The Amendment replaces the LIBOR based interest rate with a Term Secured Overnight Financing Rate ("SOFR") based rate.

The tax receivable agreement liability adjustment for the quarter ended September 28, 2025 was an expense of $0.4 million compared to a benefit of $1.7 million for the quarter ended September 29, 2024. The change was related to a remeasurement primarily due to activity under equity-based compensation plans and impacts from the One Big Beautiful Bill Act (the "Act") which was signed into law on July 4, 2025.

The tax receivable agreement liability adjustment for the three quarters ended September 28, 2025 was a benefit of $2.1 million compared to a benefit of $2.7 million for the three quarters ended September 29, 2024. The change was related to a remeasurement primarily due to activity under equity-based compensation plans and impacts from the Act.

**Income Tax (Benefit) Expense**

Portillo's OpCo is treated as a partnership for U.S. federal, as well as state and local income tax purposes and is not subject to taxes. Rather, any taxable income or loss generated by Portillo's OpCo is allocated to its members in relation to their respective ownership percentage of Portillo's OpCo. We are subject to U.S. federal, as well as state and local, income taxes with respect to our allocable share of any taxable income or loss of Portillo's OpCo, as well as any stand-alone income or loss generated by Portillo's Inc.

Income tax benefit for the quarter ended September 28, 2025 was $1.2 million compared to income tax expense of $2.5 million for the quarter ended September 29, 2024, a decrease of $3.8 million or 149.1%. Our effective income tax rate for the quarter ended September 28, 2025 was 268.2%, compared to 22.4% for the quarter ended September 29, 2024. The increase in our effective income tax rate for the quarter ended September 28, 2025 compared to the quarter ended September 29, 2024 was primarily driven by a decrease in the valuation allowance related to the separation of Mr. Osanloo. This increases the effective income tax rate because the Company recorded a pre-tax loss for the quarter ended September 28, 2025.

Income tax expense for the three quarters ended September 28, 2025 was $3.8 million compared to $4.9 million for the three quarters ended September 29, 2024, a decrease of $1.1 million or 22.6%. Our effective income tax rate for the three quarters ended September 28, 2025 was 20.4%, compared to 17.8% for the three quarters ended September 29, 2024. The increase in our effective income tax rate for the three quarters ended September 28, 2025 compared to the three quarters ended September 29, 2024 was primarily driven by an increase in the Company's ownership interest in Portillo's OpCo, which increases its share of taxable income (loss) of Portillo's OpCo.

**Net (Loss) Income Attributable to Non-controlling Interests**

We are the sole managing member of Portillo's OpCo. We manage and operate the business and control the strategic decisions and day-to-day operations of Portillo's OpCo and we also have a substantial financial interest in Portillo's OpCo. Accordingly, we consolidate the financial results of Portillo's OpCo, and a portion of our net income is allocated to non-controlling interests to reflect the entitlement of the pre-IPO LLC Members who retained their equity ownership in Portillo's OpCo (the "pre-IPO LLC Members"). The weighted average ownership percentages for the applicable reporting periods are used to attribute net income (loss) to Portillo's Inc. and the non-controlling interest holders.

Net loss attributable to non-controlling interests for the quarter ended September 28, 2025 was $0.4 million, compared to net income attributable to non-controlling interests of $1.6 million for the quarter ended September 29, 2024, a decrease of $2.0 million or 127.8%. The decrease in net income attributable to non-controlling interests for the quarter ended September 28, 2025 was primarily due to a decrease in net income for the quarter ended September 28, 2025 and a decrease in the non-controlling interest holders' weighted average ownership to 4.6% for the quarter ended September 28, 2025 from 15.8% for the quarter ended September 29, 2024.

Net income attributable to non-controlling interests for the three quarters ended September 28, 2025 was $1.6 million, compared to net income attributable to non-controlling interest of $4.4 million for the three quarters ended September 29, 2024, a decrease of $2.8 million or 64.0%. The decrease in net income attributable to non-controlling interests for the three quarters ended September 28, 2025 was primarily due to a decrease in net income and a decrease in the non-controlling interest holders' weighted average ownership to 9.6% for the three quarters ended September 28, 2025 from 17.7% for the three quarters ended September 29, 2024.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 30

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**Selected Operating Data and Non-GAAP Financial Measures**

In addition to the GAAP measures presented in our financial statements, we use the following selected operating data and non-GAAP financial measures to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions. These key measures include restaurant openings, average unit volume ("AUV"), same-restaurant sales, Adjusted EBITDA, Adjusted EBITDA Margin, Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. The Company includes these measures because management believes that they are important to day-to-day operations and overall strategy and are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision-making.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Total Restaurants (a) | 98 | 88 | 98 | 88 |
| AUV (in millions) (a) | N/A | N/A | $8.6 | $8.9 |
| Change in same-restaurant sales (b) (c) | (0.8)% | (0.9)% | 0.5% | (0.9)% |
| Adjusted EBITDA (in thousands) (b) | $21387 | $27911 | $72662 | $79554 |
| Adjusted EBITDA Margin (b) | 11.8% | 15.7% | 13.3% | 15.1% |
| Restaurant-Level Adjusted EBITDA (in thousands) (b) | $36691 | $41946 | $117828 | $122886 |
| Restaurant-Level Adjusted EBITDA Margin (b) | 20.2% | 23.5% | 21.6% | 23.4% |

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(a) Includes a restaurant that is owned by C&O, of which Portillo's owns 50% of the equity. AUVs for the quarters ended September 28, 2025 and September 29, 2024 represent AUVs for the twelve months ended September 28, 2025 and September 29, 2024, respectively. Total restaurants indicated are as of September 28, 2025.

(b) Excludes C&O.

(c) For the quarter ended September 29, 2024, same-restaurant sales compares the 13 weeks from July 1, 2024 through September 29, 2024 to the 13 weeks from July 3, 2023 through October 1, 2023. For the three quarters ended September 29, 2024, same-restaurant sales compares the 39 weeks from January 1, 2024 through September 29, 2024 to the 39 weeks from January 2, 2023 through October 1, 2023

**Change in Same-Restaurant Sales** 

The change in same-restaurant sales is the percentage change in year-over-year revenue for the comparable restaurant base, which is defined as the number of restaurants open for at least 24 full fiscal periods (the "Comparable Restaurant Base"). For the three quarters ended September 28, 2025 and September 29, 2024, there were 76 and 70 restaurants in our Comparable Restaurant Base, respectively. The Comparable Restaurant Base excludes C&O.

A change in same-restaurant sales is the result of a change in restaurant transactions, average guest check, or a combination of the two. We gather daily sales data and regularly analyze the guest transaction counts and the mix of menu items sold to strategically evaluate menu pricing and demand. Measuring our change in same-restaurant sales allows management to evaluate the performance of our existing restaurant base. We believe this measure provides a consistent comparison of restaurant sales results and trends across periods within our core, established restaurant base, unaffected by results of restaurant openings and enables investors to better understand and evaluate the Company's historical and prospective operating performance.

**Average Unit Volume ("AUV")**

AUV is the total revenue recognized in the Comparable Restaurant Base, including C&O, divided by the number of restaurants in the Comparable Restaurant Base, including C&O, by period.

This key performance indicator allows management to assess changes in consumer spending patterns at our restaurants and the overall performance of our restaurant base.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 31

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**Non-GAAP Financial Measures**

To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted EBITDA and Adjusted EBITDA Margin, and Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin. Accordingly, these measures are not required by, nor presented in accordance with, GAAP, but rather are supplemental measures of operating performance of our restaurants. You should be aware that these measures are not indicative of overall results for the Company and that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin do not accrue directly to the benefit of stockholders because of corporate-level expenses excluded from such measures. These measures are supplemental measures of operating performance and our calculations thereof may not be comparable to similar measures reported by other companies. These measures are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate, but also have important limitations as analytical tools and should not be considered in isolation as substitutes for analysis of our results as reported under GAAP.

**Adjusted EBITDA and Adjusted EBITDA Margin** 

Adjusted EBITDA represents net income before depreciation and amortization, interest expense, interest income and income taxes, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing core operating performance as identified in the reconciliation of net income, the most directly comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenues, net.

We use Adjusted EBITDA and Adjusted EBITDA Margin (i) to evaluate our operating results and the effectiveness of our business strategies, (ii) internally as benchmarks to compare our performance to that of our competitors and (iii) as factors in evaluating management's performance when determining incentive compensation.

We believe that Adjusted EBITDA and Adjusted EBITDA Margin are important measures of operating performance because they eliminate the impact of expenses that do not relate to our core operating performance.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 32

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The following table reconciles net income to Adjusted EBITDA and Adjusted EBITDA margin (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Net income | $782 | $8773 | $14815 | $22647 |
| *Net income margin* | *0.4 %* | *4.9 %* | *2.7 %* | *4.3 %* |
| Depreciation and amortization | 7312 | 6679 | 21489 | 20729 |
| Interest expense | 5664 | 6450 | 17139 | 19583 |
| Interest income | (118) | (50) | (268) | (204) |
| Income tax (benefit) expense | (1247) | 2539 | 3792 | 4898 |
| EBITDA | 12393 | 24391 | 56967 | 67653 |
| Deferred rent (1) | 1952 | 1391 | 4870 | 3857 |
| Equity-based compensation | (320) | 3506 | 4288 | 9223 |
| Cloud-based software implementation costs (2) |  | 64 | 267 | 514 |
| Amortization of cloud-based software implementation costs (3) | 292 | 220 | 806 | 366 |
| Other loss (4) | 2305 | 63 | 2448 | 129 |
| Transaction-related fees and expenses (5) | 6 |  | 742 | 536 |
| Strategic realignment costs (6) | 4406 |  | 4406 |  |
| Tax Receivable Agreement liability adjustment (7) | 353 | (1724) | (2132) | (2724) |
| Adjusted EBITDA | $21387 | $27911 | $72662 | $79554 |
| *Adjusted EBITDA Margin (8)* | *11.8 %* | *15.7 %* | *13.3 %* | *15.1 %* |

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(1) Represents the difference between cash rent payments and the recognition of straight-line rent expense recognized over the lease term.

(2) Represents non-capitalized third party consulting and software licensing costs incurred in connection with the implementation of a new ERP and HCM systems which are included within general and administrative expenses.

(3) Represents amortization of capitalized cloud-based ERP and HCM system implementation costs that are included within general and administrative expenses.

(4) Represents loss on disposal of property and equipment and a legacy Barnelli's trade name impairment charge included within other loss (income), net.

(5) Represents certain expenses that management believes are not indicative of ongoing operations, consisting primarily of certain professional fees included within general and administrative expenses.

(6) Represents costs of $1.5 million in connection with the departure of our CEO and $2.9 million of costs related to the Company's strategic reset of its development and growth plans that are included within general and administrative expenses.

(7) Represents remeasurement of the Tax Receivable Agreement liability.

(8) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

**Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin** 

Restaurant-Level Adjusted EBITDA is defined as revenue, less restaurant operating expenses, which include food, beverage and packaging costs, labor expenses, occupancy expenses and other operating expenses. Restaurant-Level Adjusted EBITDA excludes corporate level expenses and depreciation and amortization on restaurant property and equipment. Restaurant-Level Adjusted EBITDA Margin represents Restaurant-Level Adjusted EBITDA as a percentage of revenues, net.

We believe that Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin are important measures to evaluate the performance and profitability of our restaurants, individually and in the aggregate.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 33

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The following table reconciles operating income to Restaurant-Level Adjusted EBITDA and Restaurant-Level Adjusted EBITDA Margin (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** | **September 28, 2025** | **September 29, 2024** |
| Operating income | $5434 | $15988 | $33346 | $44200 |
| *Operating income margin* | *3.0 %* | *9.0 %* | *6.1 %* | *8.4 %* |
| Plus: |  |  |  |  |
| &nbsp;&nbsp;General and administrative expenses | 20025 | 18305 | 57726 | 54786 |
| &nbsp;&nbsp;Pre-opening expenses | 3260 | 1747 | 5465 | 5270 |
| &nbsp;&nbsp;Depreciation and amortization | 7312 | 6679 | 21489 | 20729 |
| &nbsp;&nbsp;Net income attributable to equity method investment | (452) | (383) | (998) | (923) |
| &nbsp;&nbsp;Other loss (income), net | 1112 | (390) | 800 | (1176) |
| Restaurant-Level Adjusted EBITDA | $36691 | $41946 | $117828 | $122886 |
| *Restaurant-Level Adjusted EBITDA Margin (1)* | *20.2 %* | *23.5 %* | *21.6 %* | *23.4 %* |

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(1) Restaurant-Level Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenues, net.

**Liquidity and Capital Resources**

Our primary sources of liquidity are cash from operations, cash and cash equivalents on hand, and availability under our 2025 Revolver Facility. As of September 28, 2025, we maintained a cash and cash equivalents and restricted cash balance of $17.2 million and had $68.6 million of availability under our 2025 Revolver Facility, after giving effect to $4.4 million in outstanding letters of credit.

Our primary requirements for liquidity are to fund our working capital needs, operating lease obligations, capital expenditures, and general restaurant support center needs. Our requirements for working capital are not significant because our guests pay for their food and beverage purchases in cash or on debit or credit cards at the time of the sale and we are able to sell many of our inventory items before payment is due to the supplier of such items. Our ongoing capital expenditures are principally related to opening of new restaurants, existing capital investments (both for remodels and maintenance), as well as investments in our restaurant support center infrastructure.

Based upon current levels of operations and anticipated growth, we expect that cash flows from operations will be sufficient to meet our needs for at least the next twelve months, and the foreseeable future.

**Tax Receivable Agreement**

In connection with the IPO, we entered into a Tax Receivable Agreement ("TRA") with certain of our pre-IPO LLC Members, pursuant to which we will generally be required to pay 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize or are deemed to realize, as a result of (i) our allocable share of existing tax basis in depreciable or amortizable assets relating to LLC Units acquired in the IPO, (ii) certain favorable tax attributes acquired by the Company from entities treated as corporations for U.S. tax purposes that held LLC Units prior to the Transactions ("Blocker Companies") (including net operating losses and the Blocker Companies' allocable share of existing tax basis), (iii) increases in our allocable share of then existing tax basis in depreciable or amortizable assets, and adjustments to the tax basis of the tangible and intangible assets, of Portillo's OpCo and its subsidiaries, as a result of (x) sales or exchanges of interests in Portillo's OpCo (including the repayment of the redeemable preferred units) in connection with the IPO and (y) future redemptions or exchanges of LLC Units by pre-IPO LLC Members for Class A common stock and (iv) certain other tax benefits related to entering into the TRA, including payments made under the TRA.

As of September 28, 2025, we estimate that our obligation for future payments under the TRA totaled $353.2 million. Amounts payable under the TRA are contingent upon, among other things, (i) generation of future taxable income over the term of the TRA and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, then we would not be required to make the related TRA payments. The payments that we are required to make will generally reduce the amount of overall cash flow that might have otherwise been available to us, but we expect the cash tax savings we will realize to fund the required payments. Assuming no material changes in relevant tax law and that we earn sufficient taxable income to realize all tax benefits that are subject to the TRA, we estimate that the tax savings associated with all tax attributes described above would aggregate to approximately $415.6 million as of September 28, 2025. Under this scenario, we would be required to pay the TRA Parties approximately 85% of such amount, or $353.2 million,

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 34

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primarily over the next 15 years, substantially declining in year 16 through year 47. In the three quarters ended September 28, 2025 and September 29, 2024, we made TRA payments of $7.7 million relating to tax year 2023 and $4.4 million relating to tax year 2022, respectively. We expect a payment of $7.8 million relating to tax year 2024 to be paid within the next 12 months.

**Summary of Cash Flows**

The following table presents a summary of our cash flows from operating, investing and financing activities (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Quarters Ended** | **Three Quarters Ended** |
| | **September 28, 2025** | **September 29, 2024** |
| Net cash provided by operating activities | $48741 | $71954 |
| Net cash used in investing activities | (58079) | (56437) |
| Net cash provided by (used in) financing activities | 3696 | (7435) |
| Net (decrease) increase in cash and cash equivalents and restricted cash | (5642) | 8082 |
| Cash and cash equivalents and restricted cash at beginning of period | 22876 | 10438 |
| Cash and cash equivalents and restricted cash at end of period | $17234 | $18520 |

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**Operating Activities**

Net cash provided by operating activities for the three quarters ended September 28, 2025 was $48.7 million compared to net cash provided by operating activities of $72.0 million for the three quarters ended September 29, 2024, a decrease of $23.2 million or 32.3%. This decrease was primarily driven by the change in operating assets and liabilities of $13.0 million, a decrease in net income of $7.8 million, and change in non-cash items of $2.4 million.

The $13.0 million change in our operating assets and liabilities balances was primarily driven by operating assets and liabilities being a source of net cash of $4.2 million in the three quarters ended September 28, 2025, compared to a source of net cash of $17.1 million in three quarters ended September 29, 2024 driven by the change in accounts payable and inventory in the three quarters ended September 28, 2025. The decrease in net income for the three quarters ended September 28, 2025 was primarily due to the factors driving the aforementioned change in revenues and expenses as described in the condensed consolidated results of operations in the three quarters ended September 28, 2025 compared to the three quarters ended September 29, 2024. The $2.4 million change from the three quarters ended September 28, 2025 in non-cash charges is primarily driven by lower equity-based compensation expense, partially offset by the asset impairment charge recorded in the third quarter of 2025.

**Investing Activities**

Net cash used in investing activities was $58.1 million for the three quarters ended September 28, 2025 compared to $56.4 million for the three quarters ended September 29, 2024, an increase of $1.6 million or 2.9%. This increase was primarily due to the number and timing of builds in process.

**Financing Activities**

Net cash provided by financing activities was $3.7 million for the three quarters ended September 28, 2025 compared to net cash used in financing activities of $7.4 million for the three quarters ended September 29, 2024, an increase of $11.1 million or 149.7%. This increase is primarily due to an increase in proceeds from short-term debt, partially offset by payments of long-term debt in connection with our refinancing in the first quarter of 2025, as described in Note 8. Debt, and an increase of $3.3 million in payments related to the Tax Receivable Agreement liability for the three quarters ended September 28, 2025 as compared to the three quarters ended September 29, 2024.

**2025 Revolver Facility and Liens**

On January 27, 2025, PHD Intermediate LLC, Portillo's Holdings LLC, the other Guarantors party thereto, the Lenders from time to time party thereto and Fifth Third Bank, National Association, as Administrative Agent, the L/C Issuer and the Swing Line Lender entered into an amendment (the "Amendment") to the 2023 Credit Agreement (as amended by the Amendment and as may be amended, restated, supplemented or otherwise modified from time to time thereafter, the "2025 Credit Agreement").

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 35

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The Amendment provides for, among other things, (i) a $250 million term loan A facility (the "2025 Term Loan") and (ii) revolving credit commitments in an initial aggregate principal amount of $150 million (the "2025 Revolver Facility" and, together with the Term Loan Facility, the "2025 Facilities"), the proceeds of which will be used to refinance indebtedness under the 2023 Credit Agreement, for general corporate purposes and working capital needs and for other activities permitted under the 2025 Credit Agreement. The loans under each of the 2025 Facilities mature on January 27, 2030.

As of September 28, 2025, we had $77.0 million of borrowings under the 2025 Revolver Facility, and letters of credit issued under the 2025 Revolver Facility totaled $4.4 million. As a result, as of September 28, 2025, the Company had $68.6 million available under the 2025 Revolver Facility.

The 2025 Credit Agreement contains customary representations and warranties, events of default, reporting and other affirmative covenants and negative covenants, including limitations on indebtedness, liens, investments, negative pledges, dividends, junior financings and other fundamental changes. As of September 28, 2025, the Company was in compliance with financial covenants in the 2025 Credit Agreement.

**Material Cash Requirements**

There have been no material changes to the material cash requirements as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024, other than those payments made in the ordinary course of business.

Refer to Note 8. Debt for a description of a Credit Agreement and the repayment of borrowings.

**Critical Accounting Estimates**

This discussion and analysis of financial condition and results of operations is based upon the Company's condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires the Company to make estimates, judgments, and assumptions that can have a meaningful effect on the reporting of condensed consolidated financial statements. There have been no significant changes to our critical accounting estimates or significant accounting policies as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024, except as set forth below.

***Goodwill and Indefinite-Lived Intangible Assets***

Goodwill and indefinite-lived intangible assets are assessed for impairment annually or more frequently if events and circumstances indicate that it is more likely than not that the fair value of a reporting unit or an intangible asset is less than its carrying value.

In the quarter ended September 28, 2025, management identified impairment indicators that required a quantitative assessment of goodwill and trade names outside of the Company's annual impairment test. Refer to Note 2. Summary Of Significant Accounting Policies for a discussion of the impairment indicators identified during the period.

The Company has one reporting unit and during fiscal 2025, the Company refined its methodology for estimating the fair value of its reporting unit. In prior periods, the Company primarily utilized a market capitalization approach. Beginning in fiscal 2025, the Company incorporated a weighted combination of the income and market approaches to estimate fair value. Management believes this change provides a more comprehensive and representative valuation of the reporting unit by considering both the Company's projected future cash flows and observable market data for comparable companies.

Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, EBITDA margins, capital expenditures, perpetual growth rates, and long-term discount rates, among others. The market approach incorporated both the guideline public company method and the guideline transaction method. The guideline public company method involves analyzing valuation multiples of comparable publicly traded companies with similar operating and investment characteristics, while the guideline transaction method considers transaction multiples observed for comparable businesses. The Company also reconciles the fair value of its reporting unit to its current market capitalization to assess reasonableness. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded for the difference between the fair value of the reporting unit and the carrying value of the reporting unit. Upon completion of the quantitative impairment test and review of the related results in connection with the preparation of this Quarterly Report on Form 10-Q, the Company determined that the fair value of the reporting unit exceeded its carrying value by approximately 19%. Accordingly, the Company concluded that no impairment of goodwill existed as of the

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 36

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quarter and three quarters ended September 28, 2025.

The Company's indefinite-lived intangible assets consist of trade names and trademarks (collectively "trade names"). The Company estimates the fair value of its trade names using a relief-from-royalty income approach. If the fair value of the trade name is less than its carrying value, an impairment loss is recorded for the difference between the estimated fair value and carrying value of the intangible assets. After completing the quantitative impairment test in connection with the preparation of this Quarterly Report on Form 10-Q, the Company recorded a non-cash impairment charge of $2.2 million to its legacy Barnelli's trade name, a pasta concept available at nine co-branded restaurants, during the quarter and three quarters ended September 28, 2025. This impairment charge is included within other loss (income), net in the condensed consolidated statements of operations.

Significant changes in economic and market conditions could result in changes to expectations of future financial results and key valuation assumptions. Such changes could result in revisions of our estimates of the fair value of our reporting unit and could result in an impairment of goodwill or intangibles in a future interim period or as of September 29, 2025, our next annual measurement date. As of September 28, 2025, we had approximately $394.3 million of goodwill and $221.7 million of indefinite-lived intangible assets.

Refer to Note 2. Summary Of Significant Accounting Policies for the Company's assessment of all other recently issued accounting pronouncements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

There have been no material changes to our exposure to market risks as described in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 29, 2024.

**Item 4. Controls and Procedures.**

**EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES**

Under the supervision and with the participation of our management, including the Interim Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, our Interim Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of such date. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including the Interim Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

**CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

There were no changes in our internal control over financial reporting during the quarter ended September 28, 2025 identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 37

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**PART II – OTHER INFORMATION**

![banner.jpg](ptlo-20250928_g2.jpg)

**Item 1. Legal Proceedings.**

Information regarding certain legal proceedings to which the Company is a party are discussed in Note 13. Contingencies in the notes to the unaudited condensed consolidated financial statements and is incorporated herein by reference.

**Item 1A. Risk Factors.**

There have been no material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2024.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

Under the Second Amended and Restated LLC Agreement of Portillo's OpCo dated as of October 20, 2021 (the "OpCo LLCA"), the holders of LLC Units (other than the Company) may from time to time require Portillo's OpCo to redeem all or a portion of their LLC Units for newly-issued shares of Class A common stock on a one-for-one basis in accordance with the terms of the OpCo LLCA.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

During the quarter ended September 28, 2025, no director or officer of the Company adopted, amended or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 38

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**Item 6. Exhibits.**

---

| | | | |
|:---|:---|:---|:---|
| **Exhibit Number** | | **Description** | **Filed Herewith** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1871509/000187150921000009/exhibit31amendedandrestate.htm)</u> |  | <u>[Amended and Restated Certificate of Incorporation of Portillo's Inc. (incorporated by reference to Exhibit 3.1 of the Company's Quarterly Report on Form 10-Q filed on November 18, 2021)](https://www.sec.gov/Archives/edgar/data/1871509/000187150921000009/exhibit31amendedandrestate.htm)</u> |  |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1871509/000187150921000009/exhibit32amendedandrestate.htm)</u> |  | <u>[Amended and Restated Bylaws of Portillo's Inc. (incorporated by reference to Exhibit 3.2 of the Company's Quarterly Report on Form 10-Q filed on November 18, 2021)](https://www.sec.gov/Archives/edgar/data/1871509/000187150921000009/exhibit32amendedandrestate.htm)</u> |  |
| <u>[10.1](exhibit101offerletter-mich.htm)</u> | † | <u>[O](exhibit101offerletter-mich.htm)[ffer Letter from](exhibit101offerletter-mich.htm)[Portillo's Hot Dogs, LLC to Michael](exhibit101offerletter-mich.htm)[A.](exhibit101offerletter-mich.htm)[Miles](exhibit101offerletter-mich.htm)[, Jr.](exhibit101offerletter-mich.htm)[, as of October 6, 2025](exhibit101offerletter-mich.htm)</u> | \* |
| <u>[10.2](exhibit102michaelosanloose.htm)</u> | † | <u>[M](exhibit102michaelosanloose.htm)[ichael Osanloo Separation Agreement and](exhibit102michaelosanloose.htm)[Release](exhibit102michaelosanloose.htm)</u> | \* |
| <u>[31.1](exhibit31110-q92825.htm)</u> |  | <u>[Certification of the Principal Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31110-q92825.htm)</u> | \* |
| <u>[31.2](exhibit31210-q92825.htm)</u> |  | <u>[Certification of the Principal Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](exhibit31210-q92825.htm)</u> | \* |
| <u>[32.1](exhibit32110-q92825.htm)</u> |  | <u>[Certifications of the](exhibit32110-q92825.htm)[Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](exhibit32110-q92825.htm)</u> | # |
| 101.INS |  | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | \* |
| 101.SCH |  | XBRL Taxonomy Extension Schema Document | \* |
| 101.CAL |  | XBRL Taxonomy Extension Calculation Linkbase Document | \* |
| 101.DEF |  | XBRL Taxonomy Extension Definition Linkbase Document | \* |
| 101.LAB |  | XBRL Taxonomy Extension Label Linkbase Document | \* |
| 101.PRE |  | XBRL Taxonomy Extension Presentation Linkbase Document | \* |
| 104 |  | Cover page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | \* |

---

*\*&nbsp;&nbsp;&nbsp;&nbsp;Filed Herewith*

*# &nbsp;&nbsp;&nbsp;&nbsp;Furnished Herewith*

*†&nbsp;&nbsp;&nbsp;&nbsp;Indicates a management contract or compensatory plan or agreement*

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 39

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | **Portillo's Inc.** |
| | | (Registrant) |
| Date: November 4, 2025 | By: | /s/ Michael A. Miles, Jr. |
|  |  | Michael A. Miles, Jr. |
|  |  | Interim President and Chief Executive Officer<br>Chairman of the Board<br>(Principal Executive Officer) |
| Date: November 4, 2025 | By: | /s/ Michelle Hook |
|  |  | Michelle Hook |
|  |  | Chief Financial Officer and Treasurer<br>(Principal Financial Officer and Principal Accounting Officer) |

---

Portillo's Inc. ![circle.jpg](ptlo-20250928_g3.jpg) Form 10-Q \| 40

## Exhibit 10.1

![image_1.jpg](image_1.jpg)

2001 Spring Road, Suite 400, Oak Brook, I L 60523-3930 • (630) 954-3773 • www.portillos.com

***<u>VIA EMAIL</u>*** 

October 3, 2025

Michael A. Miles, Jr.

mmiles@portillos.com

Dear Mike,

This offer letter memorializes the compensation that you receive for your service as our

interim **President and Chief Executive Officer.** 

**COMPENSATION** 

**Base and Bonus:** Your base salary is **$60,000.00 per year** and is paid on a bi-weekly pay cycle with 26 pay periods per year. Paydays occur every Friday after the end of each pay period. You are not currently eligible to participate in our discretionary annual bonus program. The above base salary will not be eligible for an annual increase during the March 2026 evaluation cycle unless required by law to increase.

**Equity:** In your new position, you are also eligible to participate in the 2021 Equity Incentive Plan, with the details set out below, subject to final approval by the Board of Directors. Subject to approval by the Board of Directors and to compensate you for your service through December 31, 2025 (the "Initial Term"), you will be granted a restricted stock unit award with a grant date fair value of **$1,200,000** (the "Initial Term RSUs")**,** with the number of shares determined based on our stock price as of October 15, 2025 and which will vest on the one-year anniversary of the date of grant.

Subsequent to your Initial Term and subject to approval by the Board of Directors, you'll receive a restricted stock unit award with a grant date fair value of **$400,000** per month ("Monthly RSUs"), awarded as of the first day of each month while serving as President and Chief Executive Officer. Each of these grants will also vest on the one-year anniversary of the date of grant.

In the event that your service as President and Chief Executive Officer is terminated by the Company before the Initial Term ends other than for cause, and you cease serving as a Director of the Company, your Initial Term RSUs will vest on a prorated basis based on the amount of time served as President and Chief Executive Officer during the Initial Term.

------

![image_1.jpg](image_1.jpg)

In the event that your service as President and Chief Executive Officer terminates after the Initial Term ends, and you continue serving as a Director of the Company, your Initial Term RSUs and Monthly RSUs will continue to vest according to the normal 12-month schedule, subject to your continued service as a Director of the Company.

In the event that your service as President and Chief Executive Officer terminates after the Initial Term, and you cease serving as a Director of the Company before all Initial Term RSUs and Monthly RSU tranches have vested, your Initial Term RSUs and Monthly RSUs will be treated in accordance with the Company's normal Board practices.

You will not be eligible to participate in the Company's Executive Severance or Change In Control Plan or any similar severance pro gram. Any severance benefits, if applicable, will be determined in the Company's sole discretion or as otherwise set forth in a separate written agreement.

**PERKS & BENEFITS TO HELP YOU THRIVE** 

**Technology Allowance:** A monthly allowance of **$40** is provided to help cover mobile and other work-related technological expenses.

**Health & Wellbeing**: We offer medical, prescription drug, dental, vision, flexible spending accounts, voluntary benefits, life/AD&D and disability insurance benefits for you and your eligible dependents. Your coverage begins on the **first day of the month following 60 days** of employment.

**Retirement:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **401(k) Savings Plan:** You will be eligible to participate 90 days after your date of hire. Set a percentage of your pay contribute up to 50% of your salary (subject to federal limits).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Non-Qualified Deferred Plan (NQDC):** highly compensated team members may be eligible to participate in the NQDC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Financial Planning:** we offer financial and tax planning programs for our Executive Team Member.

**Time Off:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Unlimited Paid Time Off:** Portillo's offers unlimited time off for Directors, Vice Presidents and Executive Level Team Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Paid Holidays:** The Restaurant Support Center observes **nine paid holidays** each year when the office is closed.

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![image_1.jpg](image_1.jpg)

**Code Section 409A:** It is intended that any amounts payable under this letter shall be exempt from or shall comply with Section 409A of the Internal Revenue Code of 1986, as amended (including the Treasury regulations and other published guidance relating thereto) ("Section 409A"), and the Company's and your exercise of authority or discretion hereunder shall comply therewith so as not to subject you to the payment of any interest or additional tax imposed under Section 409A. For purposes of Section 409A, your right to receive installment payments pursuant to this letter shall be treated as a right to receive a series of separate and distinct payments.

All offer details, including compensation, bonus plans, and allowances, are subject to change based on business needs, company policies, and any future changes to your position. This is an offer of employment only and should not be construed as an employment contract. Your continued employment with the Company is contingent upon your execution and return of the Company's standard Confidentiality, Work for Hire and Non-Solicitation Agreement.

Please feel free to contact me via email at <u>jwaite@portillos.com</u> with any questions.

<u>/s/ Jill Waite</u> 

Jill Waite, CPO

Portillo's Hot Dogs LLC

I hereby accept the offer as interim President and Chief Executive Officer of Portillo's Hot Dogs, LLC.

<u>/s/ Michael A. Miles, Jr.</u> 

Signature

<u>October 6, 2025</u> 

Date

## Exhibit 10.2

![image_0a.jpg](image_0a.jpg)

Portillo's Hot Dogs, LLC • 2001 spring Road, Suite 400, Oak Brook, IL 60523-3930 • 630-954-3773 • fax 630-954-5851 • www.portillos.com

September 29, 2025

**<u>VIA EMAIL</u>**

Michael Osanloo

Re: &nbsp;&nbsp;&nbsp;&nbsp;<u>Separation Agreement and Release</u>

Dear Michael:

The purpose of this Separation Agreement and Release (this "Agreement") is to confirm the ![image_2a.jpg](image_2a.jpg)understanding and agreement by and between Portillo's Inc. and all of its affiliates (collectively referred to as "Portillo's" or the "Company") and You, in Your individual capacity (referred to as "You" or "Your"), concerning Your Qualifying Termination from Portillo's. Capitalized terms used herein without definition have the meanings ascribed to such terms in the Portillo's Inc. Senior Executive Severance Plan (the "Plan").

<u>Termination Date</u>

Your employment relationship with Portillo's terminated on September 21, 2025 (the

"Termination Date") and You will receive final payment of Your salary in the Company's next regular payroll date. You acknowledge that, pursuant to the terms of Your Employment Agreement, dated as of August 3, 2018, with PHD Group Holdings LLC (the "Employment Agreement"), You are deemed to have resigned from the Company's Board of Directors and as a member of the board of directors or similar governing body of any of the Company's Affiliates and as a fiduciary of any Company benefit plan, upon Your termination of employment, and, by Your signature below, You acknowledge and affirm such resignation.

<u>Severance Benefits</u>

In consideration of Your promises and covenants herein, and subject to the terms and conditions of the Plan and this Agreement, as well as Your continued compliance with the restrictive covenants set forth or incorporated herein, Portillo's will provide You with the following severance payments and benefits (collectively, the "Severance Payments and Benefits"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Salary: eighteen (18) months' base salary continued pay, subject to and payable in accordance with the terms of Section 5.1 (b) of the Plan;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 2025 Bonus: a prorated bonus, based on the Termination Date and based on actual performance; to be paid at the time 2025 annual bonuses are paid to similarly situated employees of the Company, subject to and payable in accordance with the terrns of Section 5.1 (c) of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Benefits: Medical, Dental, Vision — subject to you timely electing and enrolling in COBRA coverage, Portillo's will reimburse You for the difference between what You pay for the cost of COBRA coverage in excess of what active employees pay for medical, dental and/or vision coverage until the earlier of (a) the date You are no longer eligible for COBRA continuation coverage, and (b) the date You obtain comparable alternative insurance coverage, subject to and payable in accordance with the terms of Section 5.1 (e) of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Outplacement services: if requested, the Company will provide and pay for outplacement services through a nationally recognized firm selected by the Company, which specializes ![image_5a.jpg](image_5a.jpg)in outplacement services for up to twelve months following the Termination Date and a maximum value of $25,000, subject to and payable in accordance with the terms of Section 5.1 (f) of the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Option exercise period: Notwithstanding the terms of any award agreement to the contrary, the Company shall cause Your non-qualified stock options with respect to 2,027,910 shares, which were originally granted on October l, 2018 (and later exchanged in connection with the Company's initial public offering) ("Vested Options"), to remain exercisable until the 10th anniversary of the original grant date (i.e., October 1, 2028), subject to the terms and conditions of the applicable equity plan and award agreement that permit earlier termination (e.g., in connection with certain corporate transactions).

The salary continuation and COBRA reimbursements will commence on the 60th day following the Termination Date, and the first such payment will include any payments that would have otherwise been paid between the Termination Date, and the date of such first payment.

For the avoidance of doubt, and in accordance with Section 5.4 of the Plan, You acknowledge and agree that the foregoing payments and benefits being offered to You exceed those specified in the Employment Agreement and that, Your acceptance of this Agreement extinguishes any claim to the severance payments and benefits set forth in the Employment Agreement.

You further acknowledge and agree that Your receipt of the Severance Payments and Benefits under this Agreement and the Plan is subject to Your execution, delivery, and non-revocation of this Agreement and Your continued compliance with: (a) the restrictive covenants set forth in Article VI of the Plan; (b) any other pre-existing restrictive covenants already in effect as of the date of this Agreement, including, without limitation, the covenants set forth in the Employment Agreement), and (c) the non-competition covenant set forth herein. Please carefully read the terms and conditions of this Agreement and the Plan, including the restrictive covenants set forth in Article VI of the Plan. By signing this Agreement, You are agreeing to be bound by the terms and conditions of this Agreement and the Plan.

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<u>Non-Competition</u>

In exchange for the Company's promises and covenants herein, You agree that, through the period ending on the two-year anniversary of the Termination Date, You shall not, without the prior written consent of Portillo's, directly or indirectly, whether as principal or investor or as an officer, director, manager, partner, consultant, agent, employee or otherwise, alone or in association with any other person, firm, company or other business organization, carry on a Competing Business; <u>provided: however</u>, that nothing in this paragraph shall prohibit the holding of an investment by way of shares or other securities of not more than two percent (2%) of the total issued share capital of any company which securities are publicly-traded on a national stock exchange or in the over-the-counter market. For purposes of this Agreement, a "Competing Business" means: (i) any business that sells Chicago-style hot dogs if the same constitute at least 15% of the revenue of such business, and (ii) any of the following other specific competitors (or their successors): Dog Haus, Wienerschnitzel, Nathan's Famous, Buona Beef, Al's Italian Beef, and Mr. Beef.![image_12a.jpg](image_12a.jpg)

You acknowledge that this non-competition covenant is necessary and reasonable to protect the confidential and proprietary information of the Company, and does not unduly restrict Your ability to work. You further acknowledge that a breach or threatened breach by You of this non![image_8a.jpg](image_8a.jpg)competition covenant will cause serious and irreparable harm to Portillo's for which it shall have no adequate remedy at law, and, therefore, in addition to any other rights and remedies that Portillo's may have, You agree that Portillo's, without posting any bond, shall be entitled to seek to obtain a temporary restraining order or a preliminary or permanent injunction and other equitable relief to prevent such a threatened, actual, or continuing breach. While this non-competition covenant is considered reasonable by the parties and necessary for the protection of the legitimate business interests of the Company, it is agreed that if such restriction is be found to be void or voidable but would be valid and enforceable if some part or some parts thereof was deleted or modified, such restriction shall apply with such modification as may be necessary to make it valid and enforceable.

<u>Non-Assistance</u>

In addition to any obligations You may have pursuant to the Plan or the Employment Agreement, You expressly acknowledge and agree that You: (i) shall not provide any confidential information, including any advice or assistance derived from Your experience with the

Company, to any competitor of the Company, shareholder of the Company, litigant or potential litigant against the Company, or any other third party (each, a "Potential Adverse Party"); and (ii) shall not aid, encourage, advise, or otherwise assist any Potential Adverse Party in asserting, prosecuting, or defending any claim, action, or proceeding, undertaking any proxy contest, withhold campaign, or other shareholder campaign or proxy solicitation, or making any other demands against the Company. Additionally, You further agree to promptly notify the Company if You are approached by any private (non-governmental) third party concerning any of the foregoing matters. For the avoidance of doubt, the definition of "Potential Adverse Party" excludes any government agency. Notwithstanding the foregoing, nothing in this paragraph shall prevent you from disclosing confidential information in response to a subpoena or other legal

------

process, provided that (unless prohibited by law) you first promptly notify the Company of the same in order to provide the Company, at its sole expense, with an adequate opportunity to seek to challenge the subpoena, obtain a protective order preventing or limiting such disclosures, or another appropriate remedy.

<u>Engagement as Special Advisor</u>

You and the Company agree that You shall be engaged as a consultant by the Company for a period from the Termination Date through December 20, 2025 (the "Consulting Period"). You ![image_9a.jpg](image_9a.jpg)acknowledge and agree that the Severance Payments and Benefits are sufficient consideration for ![image_8a.jpg](image_8a.jpg)your consulting service and that no additional monies shall be payable to you for your service during the Consulting Period.

During the Consulting Period, You shall perform such knowledge transfer and strategic consulting services as the Company may reasonably request from time to time, it being understood that Your commitment of time during the Consulting Period shall generally require fewer than forty (40) hours per month. Further, You agree that, during the Consulting Period, ![image_11a.jpg](image_11a.jpg)except as expressly requested or approved by the Company, You (A) shall refrain from directly or indirectly contacting any employee, consultant, existing or prospective customer, existing or prospective vendor, counterparty, or other third-party in relation to the business or affairs of the Company, (B) shall not have any authority to bind the Company, and (C) shall not attend the Company's offices or access its systems except as may be requested by the Company.

![image_12a.jpg](image_12a.jpg)If You engage in conduct during the Consulting Period, or if the Company discovers conduct occurring prior to the Consulting Period, that, in either case, would have amounted to Cause (as defined in the Employment Agreement) for termination of Your employment had You still been employed, then the Company will be entitled to terminate the Consulting Period without further obligation to You. If You refuse to provide consulting services as requested or otherwise terminate the Consulting Period, the Company will have no further obligation to You with respect to your service as a consultant during the Consulting Period.![image_19.jpg](image_19.jpg)

Your relationship with the Company during the Consulting Period will be that of an independent contractor, and, during Your consulting service, You will not be entitled to any of the benefits that the Company may make available to its employees, including, but not limited to, group health insurance, life insurance, profit sharing, retirement benefits, paid vacation, holidays or sick leave, or workers' compensation insurance.

<u>Release</u>

You hereby release Portillo's and all of its affiliates and related entities, predecessors, successors, and assigns (whether to all or any part of such entities' businesses), and all of such entities' officers, directors, agents, representatives, attorneys, and employees (current and former) and their employee benefit plans and programs and their administrators and fiduciaries, from any and all claims and causes of action that may exist, whether known or unknown, as of the date of Your execution of this Agreement, with the exception of any unemployment compensation or workers' compensation benefits claim You may have and any other claims that cannot be waived by law.

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The scope of claims being released includes all causes of action to the extent permitted by law, including, but not limited to, claims under Portillo's policies or practices; claims for breach of any term or condition of an agreement, employee handbook or policy manual, including any claims for breach of any promise of specific treatment in specific situations; federal, state, local and common law fair employment practices or discrimination laws; claims alleging breach of contract or wrongful termination or any other tort or violation of public policy, including invasion of privacy, intentional interference, negligence, or fraud, including any claim for damages, including compensatory damages, punitive damages, attorney's fees, costs, expenses, and any other type of damage or relief; claims arising under any whistleblowing, harassment, or retaliation laws; age discrimination claims under the Age ![image_14a.jpg](image_14a.jpg)Discrimination in Employment Act, as amended, and/or the Older Workers Benefit Protection Act; any claim under the Uniformed Services Employment and Reemployment Rights Act, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Equal Pay Act, the Genetic Information Nondiscrimination Act of 2008, the Americans with Disabilities Act, as amended, the Employee Retirement Income Security Act of 1974, as amended (excluding claims for accrued, vested benefits), the Family and Medical Leave Act, as amended, Section 806 of the Sarbanes Oxley Act of 2002, as amended, the Worker Adjustment and Retraining Notification Act, as amended, or the Illinois Human Rights Act, as amended; and any other state, federal, and/or local law, statute, regulation, rule, ordinance, order or decision relating to employment or termination of employment.

This release does not apply to any claims arising after Your execution of this Agreement.

<u>Claims Not Released and Other Protected Conduct</u>

You are not waiving any rights You may have to: (a) Your own vested accrued employee benefits under the Company's health, welfare, or retirement benefit plans as of the Termination Date; (b) benefits and/or the right to seek benefits under applicable workers' compensation and/or unemployment compensation statutes; (c) pursue claims that by law cannot be waived by signing this Agreement; (d) enforce this Agreement (including rights under Section 5.1 of the Plan, as applicable); (e) any rights to indemnification in respect of service as an employee or director; (f) the Vested Options and/or (g) challenge the validity of this Agreement.

Further, nothing in this Agreement or the Plan shall restrict You from: (a) filing a charge with the U.S. Equal Employment Opportunity Commission or similar state or local administrative agency; provided, however, You release Your right to obtain damages or other relief in connection with such charge; (b) reporting any allegations of unlawful conduct to, participating in any proceeding conducted by, or cooperating with any federal, state or local government agency or official, including, but not limited to, the U.S. Securities and Exchange Commission, ![image_15a.jpg](image_15a.jpg)the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice; (c) truthfully testifying in any administrative, legislative, or judicial proceeding if You have been required or requested to attend pursuant to a court order, subpoena, or written request from an administrative agency or the legislature; (d) requesting or receiving confidential legal advice; or (e) receiving an award or bounty for providing information to any governmental agency concerning a violation of law.

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<u>Written Affirmation of No Present Violation</u>

You certify and warrant that: (a) You are not presently aware of any unreported violation of

Portillo's Code of Business Conduct; (b) You are not presently aware of any work-related injury not properly disclosed to Portillo's; (c) upon receiving the payments and other entitlements outlined in this Agreement, You will have received all medical and other leave time and pay to which You are entitled; (d) You will have been paid for all hours worked; and (e) You have not exercised any actual or apparent authority by or on behalf of Portillo's that You have not specifically disclosed to Portillo's.

<u>Review of Agreement</u>![image_16a.jpg](image_16a.jpg)

You agree and represent that You have the right to and have been advised to consult with an attorney or representative of Your choice prior to executing this Agreement and You fully ![image_17a.jpg](image_17a.jpg)understand Your right to discuss all aspects of this Agreement with such attorney or representative. Your execution of this Agreement establishes that, if You wish the advice of an attorney, You have done so by the date You signed the Agreement, and that You were given at least twenty-one (21) days to consider whether to sign this Agreement and You agree that if You ![image_18a.jpg](image_18a.jpg)decide to shorten this time period for signing, Your decision was knowing and voluntary. You may sign this Agreement and then revoke Your signature before the end of the seven-day period following signature. The parties agree that a change, whether material or immaterial, does not restart the running of said period. Provided You timely sign this Agreement and do not revoke this Agreement as provided herein, this Agreement shall be effective, enforceable and irrevocable on the eighth (8th) day after You sign this Agreement.

<u>Full Compliance</u>

You acknowledge and agree that Portillo's agreement to provide benefits under this Agreement (other than the Accrued Obligations) is expressly contingent upon, and is consideration for, Your full compliance with the provisions of this Agreement and the Plan.

<u>Successors</u>

You and anyone who succeeds to Your rights and responsibilities are bound by this Agreement and this Agreement will accrue to the benefit of and may be enforced by either party and their successors and assigns. In the event of Your death after the Termination Date and while any ![image_19.jpg](image_19.jpg)payment or entitlement remains due to You hereunder, such payment or entitlement shall be paid or provided to Your designated beneficiary or beneficiaries (or if You have not designated a beneficiary, to Your estate).

<u>Severability</u>

You agree that the validity or unenforceability of any provision of this Agreement shall not affect the validity or unenforceability of any remaining provisions.

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<u>Non-Mitigation; No Offset</u>

Consistent with Section 5.3 of the Plan, upon termination of Your employment, You shall have no obligation to mitigate damages or to seek other employment and, except as set forth in Section 5.1 (e) of the Plan, there shall be no offset by the Company against any amounts or entitlements due under this Agreement on account of any compensation or entitlements that You may receive from subsequent employment or on account of any claim that Company may have against You.

<u>Governing Law</u>

This Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed by the parties to this Agreement. It is not, and shall not, be interpreted or construed as an admission or indication that the Company has engaged in any wrongful or unlawful conduct of any kind.

You agree that all questions concerning the intention, validity, or meaning of this Severance

Agreement and Release shall be construed and resolved according to the laws of the State of Delaware. You also designate the federal and state courts of Delaware County, Delaware as the courts of competent jurisdiction and venue for any actions or proceedings related to this Severance Agreement and Release, and hereby irrevocably consent to such designation, jurisdiction and venue.

\*&nbsp;&nbsp;&nbsp;&nbsp;\*&nbsp;&nbsp;&nbsp;&nbsp;\*

I believe the foregoing accurately reflects the terms of Your severance from Portillo's and ask that You sign an extra copy of this Agreement to confirm Your agreement. You must return the signed Agreement to me by the expiration of the twenty-first (21st) day following Your receipt of this Agreement; otherwise, I will assume that You reject this offer and it will no longer be available to You.

Sincerely,

PORTILLO'S INC.

<u>By: /s/ Kelly M. Kaiser</u> 

Name: Kelly M. Kaiser

Title: General Counsel & Secretary

------

Agreed to:

<u>/s/ Michael Osanloo</u> 

Michael Osanloo

<u>September 29, 2025</u> 

Date

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michael A. Miles, Jr., certify that:

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| | | |
|:---|:---|:---|
| 1. |  | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2025 of Portillo's Inc.; |
| 2. |  | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. |  | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. |  | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|  | a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|  | b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|  | c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|  | d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
| 5. |  | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|  | a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
|  | b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |

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| | | |
|:---|:---|:---|
| Date: November 4, 2025 | By: | /s/ Michael A. Miles, Jr. |
|  |  | Michael A. Miles, Jr. |
|  |  | Interim President and Chief Executive Officer<br>Chairman of the Board<br>(Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Michelle Hook, certify that:

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| | | |
|:---|:---|:---|
| 1. |  | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2025 of Portillo's Inc.; |
| 2. |  | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. |  | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| 4. |  | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|  | a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|  | b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|  | c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|  | d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
| 5. |  | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
|  | a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
|  | b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |

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| | | |
|:---|:---|:---|
| Date: November 4, 2025 | By: | /s/ Michelle Hook |
|  |  | Michelle Hook |
|  |  | Chief Financial Officer and Treasurer<br>(Principal Financial Officer and Principal Accounting Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Portillo's Inc. (the "Company"), for the quarterly period ended September 28, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned officers of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of such officer's knowledge:

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| | |
|:---|:---|
| 1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |

---

---

| | | |
|:---|:---|:---|
| Date: November 4, 2025 | By: | /s/ Michael A. Miles, Jr. |
|  |  | Michael A. Miles, Jr. |
|  |  | Interim President and Chief Executive Officer<br>Chairman of the Board<br>(Principal Executive Officer) |

---

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| | | |
|:---|:---|:---|
| Date: November 4, 2025 | By: | /s/ Michelle Hook |
|  |  | Michelle Hook |
|  |  | Chief Financial Officer and Treasurer<br>(Principal Financial Officer and Principal Accounting Officer) |

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