Why Portillo's Stock Popped Today
Shares of restaurant chain Portillo's (NASDAQ: PTLO) popped on Tuesday after closing out 2023 with financial results that beat expectations. As of noon ET today, Portillo's stock was up about 17%.
Portillo's is a small restaurant chain with 84 locations as of the end of 2023. Like many of its peers, the company raised menu prices in 2023 to offset inflation, but this didn't deter diners. In the fourth quarter, menu prices were up 6% year over year but transactions were also up by 1.3% -- an encouraging sign of consumer demand.
That demand is driving Portillo's expansion plans. The company opened 12 new locations in 2023, a meaningful amount for a chain this small. And it expects to open at least nine new locations in 2024, which would be about 11% growth.
Source Fool.com
