CHICAGO - Portillo's (NASDAQ: PTLO), a fast-casual restaurant chain specializing in Chicago-style favorites and generating over $713 million in annual revenue, announced today the appointment of Tony Darden (NYSE:DRI) as Chief Operating Officer. According to InvestingPro data, the company has maintained strong growth with an 11% year-over-year revenue increase, though its stock has experienced significant volatility in recent months. Darden, a restaurant industry veteran with over 30 years of experience, is set to join the company on December 9, 2024. He is expected to play a crucial role in streamlining operations amid the brand's strategic growth across the nation.
Darden's extensive background includes a recent stint as COO of Jack in the Box (NASDAQ:JACK), where he managed operations for over 2,200 locations and implemented AI-driven initiatives to improve efficiency and customer service. His career highlights also feature leadership roles at MOOYAH Burgers, Taco Bueno, and Sun Holdings, as well as a position as Vice President of Operations at Panera Bread (NASDAQ:PNRA).
Portillo's CEO and President Michael Osanloo expressed enthusiasm about Darden's appointment, citing his proven track record in enhancing operations and leading teams. Osanloo emphasized Darden's alignment with Portillo's commitment to quality and exceptional service.
As the new COO, Darden will be responsible for overseeing the operational strategy and ensuring a seamless experience for guests and employees. His appointment comes as Portillo's aims to expand its footprint to as many as 920 locations, including traditional restaurants and alternative formats like Portillo's Pick-Up spots. InvestingPro analysis suggests the company is currently undervalued, with additional ProTips available for subscribers looking to deep-dive into the company's expansion potential and financial health metrics.
The company is also preparing to open its "Restaurant of the Future" in Grapevine, Texas, in December, featuring a smaller, more efficient design, and customer-friendly elements such as kiosks and a Grab and Go area.
Darden expressed his honor in joining Portillo's and his eagerness to contribute to the brand's growth and maintain its strong customer loyalty.
Since its inception in 1963 with a single hot dog stand, Portillo's has expanded to over 80 locations across ten states, known for its signature Chicago-style hot dogs, Italian beef sandwiches, and chocolate cake. The chain also offers nationwide shipping of its products through its website. With a market capitalization of $857 million and a favorable PEG ratio of 0.49, InvestingPro subscribers can access comprehensive analysis including the company's detailed Pro Research Report, which is part of the platform's coverage of over 1,400 US stocks.
The information in this article is based on a press release statement from Portillo's Hot Dogs, Inc.
In other recent news, Portillo's reported a 7% increase in Q3 revenue, reaching $178.3 million, despite a slight decrease in same-restaurant sales and transaction volume. The company's strategic expansion and effective cost management, including the opening of a new restaurant in Houston, have contributed to these positive financial results. Portillo's is also focusing on enhancing customer experience through kiosks and drive-thru efficiency, alongside a disciplined approach to inflationary pressures.
The company's Q3 report also shared that same-restaurant sales declined by 0.9%, and transactions were down by 3.5%. However, the average check increased by 2.6%, aided by a 4.4% price increase on select items. In addition, Portillo's is planning to open five more restaurants by the end of the year.
Looking ahead, full-year comparable sales are expected to be around negative 1%, but the company anticipates a 12% to 15% increase in restaurant count next year. Portillo's is also planning to introduce a loyalty program early next year and future restaurant designs will focus on takeout and drive-thru services.
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