Portillo's Will Close Up to 9 Restaurants Despite 7% Revenue Growth

Portillo's will close up to nine underperforming restaurants outside the Chicago metro area, even after reporting third-quarter revenue of $194.1 million, up 7 percent year over year from $181.4 million.

The Chicago-based fast food chain, known for its hot dogs, Italian beef and sandwiches, disclosed the closures alongside quarterly results that were positive on nearly every line. Adjusted EBITDA came in at $26.5 million, and same-restaurant sales rose 1.4 percent year over year.

The company attributed that same-store gain not to more traffic but to higher average checks, driven by menu price increases. In other words, customers are paying more per visit rather than visiting more often.

Portillo's stock (Nasdaq: PTLO) trades at around $7 a share, up close to 50 percent this year — a striking run for a chain now trimming its footprint.

Which restaurants are closing?

The company has not yet announced the specific locations or timing of the closures. It did say most of them would take place this year.

All the affected restaurants sit outside the Chicago metro area, where the chain's core following lives. Portillo's operates 20 locations in Illinois and 109 nationwide.

The closures come as parts of the fast food industry face strain. A large Wendy's franchisee recently filed for bankruptcy, a reminder that even established brands aren't immune to shifting consumer spending.

Is Portillo's still expanding?

Yes — and aggressively for a chain of its size. Portillo's opened seven new restaurants across Texas in the first half of the year, bringing its total in the Lone Star State to 20. Chicago will get a new location by the end of the year.

Looking further out, the company said it plans to open four to six new restaurants in 2027.

A company spokesperson told Inc. in an email that Portillo's remains committed to expansion. "The company remains focused on strengthening its existing restaurant portfolio and pursuing new development opportunities that support sustainable, profitable growth," the spokesperson said.

What does this mean for the business?

The move reads less like a retreat and more like portfolio hygiene. Portillo's is pruning its weakest locations while it still has momentum — rising revenue, climbing stock price and a Texas buildout that now matches its entire Illinois footprint.

The bet is that closing underperformers and concentrating new development in growth markets like Texas will protect margins. Investors will get a clearer picture when the company names the closing locations and shows whether menu price increases can keep carrying same-store sales without denting traffic.