Portillo’s to Close Several Restaurants Outside Chicago

Portillo’s said it selected the restaurants after reviewing sales, restaurant-level margins and projected operating performance. The Oak Brook, Ill.-based company expects charges related to the closures but said it cannot reasonably estimate their total amount at this time.

Chief Executive Brett Patterson said the plan would “improve portfolio quality, strengthen returns on invested capital and reflect our commitment to disciplined growth.” The move follows an August announcement that the company had cut around 18% of the active workforce at its corporate headquarters.

The announcement came as Portillo’s reported third-quarter profit of $4.51 million, or 6 cents a share, up from $1.21 million, or 2 cents a share, a year earlier. Analysts polled by FactSet had expected earnings of 3 cents a share. Net revenues rose 7% to $194.1 million, above Wall Street’s $193.2 million estimate, while same-restaurant sales increased 1.4%; analysts had expected a 0.4% decline.

Portillo’s forecast full-year revenue of $768 million to $773 million, compared with analyst expectations of $771.2 million. Its shares rose 20% to $6.53 on Thursday after the company reported the quarterly results and announced the closure plan.