Why Portillo's Stock Dropped Today
Shares of restaurant company Portillo's (NASDAQ: PTLO), a Chicagoan favorite, dropped on Thursday after it released financial results for the first quarter of 2023. The company had an unexpected net loss, which didn't sit well with the market. And that's why the stock was down 14% as of 2:40 p.m. ET today.
Portillo's is still a small restaurant chain, with 76 locations. In the first quarter, the company generated revenue of $156 million, which was up 16% year over year. Some of the growth is attributable to opening three new restaurants during the quarter. The remainder of the top-line growth was driven by impressive same-store sales growth of 9.1%.
On the bottom line, Portillo's is customarily profitable. However, in the first quarter, the company turned in a net loss of $1.3 million. This seems to be why the market is reacting negatively to an otherwise good quarter.
Source Fool.com
