Portillo’s files for its initial public offering
Portillo’s files will be made public./Photo courtesy of Portillo
Iconic Chicago-based fast casual Portillo’s officially filed to become a publicly traded company on Monday, noting that it intends to use the proceeds of the IPO to repay $ 470 million of total debt.
The 58-year-old chain, known for its hot dogs and Italian beef sandwiches, submitted confidential documents made public in July. With its filing on Monday, Portillo’s becomes the fourth restaurant chain to go public this year, adding its name to the list that includes Krispy Kreme, Dutch Bros and First Watch. Sweetgreen has also announced its intention to go public.
In its filing, Portillo’s did not set a price per share or disclose the number of shares it intends to sell. But he provided significant insight into his recent performances.
Portillo’s, which will be listed on Nasdaq under the symbol PTLO, said it was generating average unit volumes of $ 7.9 million and adjusted EBITDA margins of 28.6%. It reported revenue of $ 258 million for the two quarters ended June 27, up from $ 217 million for the same period the previous year.
All 68 units in the chain are equipped with drive-thru. During the pandemic, Portillo’s saw significant growth in its drive-through services, from $ 3.4 million in drive-thru sales per store in 2019 to $ 4.9 million through this channel for the 12 months ended June 27 .
Portillo’s started near Chicago in 1963 in a trailer without running water, thanks to a $ 1,100 investment from Dick Portillo. It was first called “The Dog House” and was replaced by that of Portillo a few years later.
In 2014, the then 38-unit brand was bought by private equity firm Berkshire Partners for nearly $ 1 billion. Six months after this transaction, Portillo bought part of the chain’s real estate, acquiring 18 of its namesake restaurants and two food commissions under 20-year leases.
Today, Portillo’s has restaurants in seven states.
Despite its drive-thru, the pandemic hit Portillo hard, slashing same-store sales by 8.3% in 2020 due to a 17.1% drop in traffic that was partially offset by an increase of 8, 8% of checks averages, according to its IPO filing.