But yes, I think that, for me, is a good metric that kind of removes some of that noise, and to me, looks at what we want to deliver on a long-term comp basis and us being able to do that and deliver that. When you have a good experience, you'll be back. Favorite Portillo's Menu Items: Italian beef sandwich, cheese fries, and chocolate cake. Michael branched out on his own in 1999, opening four restaurants over a five-year period. So we will strategically be taking pricing in the next few weeks. Michelle, just kind of revisiting the commentary on the 3-year comps. We see commodity market volatility as a transient pressure brought on by external market shocks. in history from the University of Michigan and an MBA from The University of Chicago's Booth School of Business. Now, we're very proud to say that we're back to pre-COVID staffing levels. To combat these headwinds, during the first quarter, we increased menu prices approximately 1.5%, and we expect additional menu price increases during the second quarter of '22. So like Michael said, we're on track. So I'm just curious, as we think about the strength, early days that you're seeing in Joliet and St. Petersburg, is it sort of stronger sales? Portillo's Restaurant Group is a chain of restaurants that specialize in serving Chicago-style food. What we say is traffic, to be more accurate, is transaction. We're scaling operations in Arizona with another restaurant in the Phoenix suburb of Gilbert and our first entry into Tucson, both slated to open later this year.

Because, as you know, when you look at forward projections, we do expect some easing. Raised in an Army military family, Derrick grew up and went to school on the Fort George Meade Military Base in Maryland. And so -- and I will tell you that our biggest concentration, which I mentioned being the beef, we're locked in at a rate that was below our own internal budgeted projections. Any non-GAAP financial measures should not be considered as an alternative to GAAP measures such as net income or operating income or any other GAAP measure of our liquidity or financial performance.

As previously mentioned on our last call, we did see a negative impact on our sales during the first several weeks of January as a result of Omicron. This website uses cookies to ensure the best user experience. On the short side, we had what we call our salad bowl, where we assemble salads -- scratch salads, and they're amazing. And so like I said, when opportunities arise, we're going to lock in. And then maybe just on the labor side. And when we do, we expect to beat our numbers. we are a Sole Proprietorship company and manufacture these products as per the set industry standards. What might happen? The bottom line is that it has been a effective tool in my work, as a non-profit reaching out to leadership. Absolutely, Nicole. And so it's early going. While we may be new to the public markets, we're a 59-year-old brand with a long history of success and a solid foundation upon which we'll continue to build. We're confident in the performance of our business. During his time in service, Rick served in Korea, Iraq, and Afghanistan. Susan lives in Chicagoland with her husband and enjoys gardening, hiking, reading and spending time with their amazing (soon to be married) daughters. These cookies do not store any personal information.

And so we're still having those conversations and it's still fluid. Its a business that defies belief, Osanloo said. It reflects the local environment. Garrett was drawn to Portillo's for its fantastic leadership team. You were kind of well below that run rate in the first quarter. Prior to joining Portillo's in 2015, he worked in digital advertising leadership roles at Google. When you have turnover that's just higher than average, you're spending a lot of money to recruit, train, bring in new people. Prior to that, he held a Regional VP of Operations role for Starbucks Southeast market, leading 800 locations and $1.4 billion in annual revenue, among other roles. As you may recall, we had taken 2.5% of price last April. But I want to be clear about something. Please disable your ad-blocker and refresh. The reason why I wanted to make sure to call out a 3-year stack was because if you go back and even look sequentially, when you look at what the 3-year stack was in '21, I think you truly do see the consistency of our performance on a 3-year stack basis. Great. And of course, we can't wait to open in Texas at Grandscape in The Colony. So we're confident about 7 for the year. That's despite opening in the dead of winter in Chicago. Favorite Portillo's Menu Item: Italian Beef n' Cheddar Croissant with sweet peppers. And you may have noticed recently that we've announced openings in the Orlando suburb of Kissimmee and Schererville, Indiana.

And with that, we will conclude today's conference call. When I tried RocketReach and to find business information about key people in seconds in an easy and seamless process, I was hooked! Our workflow has solid direction now - we have a process in place the begins with RocketReach and ends with huge contact lists for our sales team..it probably saves Feedtrail about 3 months of work in terms of lead gathering. And then just one other as it relates to the new units and the returns. And so it does take out some of that noise when you look at the comparability on a 2-year stack and then rolling over the COVID period in '20. So April was a challenging one. And we know guest satisfaction scores act as a leading indicator of same restaurant sales. Barb joins us after spending over 10 years in equity research and Investor Relations at Morningstar. The son of founder Dick Portillo, Michael's first job in the restaurants included washing dishes, taking out garbage and placing coupons on car windows. The key to our success, our algorithm when it comes to labor is take wage off the table as they come in and then provide fantastic culture, training and development so that our turnover is lower than everybody else's in the industry. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. And so, when he takes over for the retiring Keith Kinsey in October, Osanloo will essentially be going home. So if we are -- if we continue to trend at those levels, and we're definitely carefully managing that line like I mentioned, I'll update you all next quarter. It's the best, most effective email search engine I've used yet, and I've tried a few. I was hoping you could dig in a bit more in the wage investments you plan to make later this year. Yes. Same restaurant sales grew 8.2%, which reflects strong demand for Portillo's, demand that comes from our continued focus on delivering a great experience and amazing food at an unbelievable value.

Similar to Joliet, it's also performing above our underwriting expectations. When you look at our first quarter cap on a 3-year stack basis, we grew 6.8%, which is in line with our long-term target and speaks to the consistency and durability of our brand. Before Starbucks, Derrick worked his way up to various VP-level positions within the McDonald's organization and was also a franchise owner/operator for a fast-casual deli concept in Dallas. One of the more recent developments comes from streamlining our digital ordering experience. And with that, I'll turn it back to Michael. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Stock quotes provided by InterActive Data. Sherri lives in Chicagoland and has two wonderful children and five amazing grandchildren. And with that, let's turn it over to the operator for questions.

I know, Michael, you mentioned no pushback on the pricing at all. We are one of the esteemed manufacturer of two way, four way, jungle wood and pine wood pallets. So your intuition is 100% right, and we will certainly look that number up. We provide a wide range of wooden planks for different purposes. This week, the P.F. GuruFocus.com is not operated by a broker or a dealer. 2001 Spring RoadSuite 400Oak Brook, IL 60523United States630 954 3773https://www.portillos.com. We generated $8.3 million in AUV in the 12 months ended Q1 '22. Our remarks also include non-GAAP financial measures such as adjusted EBITDA and restaurant level adjusted EBITDA. The next question is from David Tarantino with Baird. Nick has a Bachelor's degree in Marketing from the University of Notre Dame and a Master's degree in Integrated Marketing Communications from Northwestern University. They share four children and 10 grandchildren. And then last question, can you talk about Chicago and kind of what you saw when the vaccine mandate lifted on, on-premises? With that, I'll hand it off to Michelle to share more details of the quarter. We have locked in pricing on almost 80% of our beef flats, and we continue to actively look to fix pricing in other areas when opportunities arise. And before we begin our formal remarks, let me remind everyone that part of today's discussion will include forward-looking statements. And we did obviously signal this in the filing this morning that we do expect additional rate increases later this year. We train the management on the Portillo's way. In Q1, what we saw is that our inside sales came up to 40% of our mix. Take wage off the table. Changs. Appreciate the color there. With St. Pete, having their grand opening on April 5, early indications are very good there as well. We had a little bit of that in there, Andy, that did impact us in terms of some labor pressures in Q1. Let's discuss the details of our first quarter results. We opened that restaurant in the fourth quarter and will continue to grow in Dallas-Fort Worth in 2023. I was nervous to try to do a drive thru, so we parked and went in.. The chain was sold to the private equity firm Berkshire Partners in 2014 for about $1 billion, an eye-popping valuation at the time.

Bottom line, this translates into more digital sales and this improvement is holding. Occasionally, we do see a stair step change in cost that signals a more permanent change. 2004-2022 GuruFocus.com, LLC. New restaurant openings in '21 and the first quarter of '22 and continued expansion of our dine-in capacity also drove higher investments in labor. And anything, Michelle, on sort of more kind of onetime costs hitting the labor line in the 1Q with Omicron still there on overtime or even COVID exclusion, pay or stuff like that, that was noticeable?

So we're really happy with that trend. This $3.9 million increase was due primarily to a $3.3 million increase in equity-based stock compensation expense and approximately $0.7 million of transaction-related expenses. This increase was largely driven by a 15.7% average increase across all commodity prices with higher impacts in pork, chicken and beef prices. So this is a huge guest win. Rick Cook joined the Portillo's family in January 2020 as Senior Vice President of Technology.

Then with your lookups you and your team can easily start engaging with customized outreach campaigns and more. There's now places where people are afraid of a new variant of Omicron -- of COVID. Garrett received a B.A. And, as a Chicagoland native, he was excited to be part of a brand that he adored and grew up with. There are some pockets where we have to make some small investments and then train the heck out of people, make sure that they are loved and appreciated and are enjoying their experiences at Portillos. In this role, Michael enables Portillo's growth by cultivating culture and operations through new restaurant openings, innovation and team member experience, supporting training, culinary and more. His decision to take the Portillos job was motivated in part by upcoming changes at the company he is currently running, the P.F. This is the first business that Im stepping into that is already growing., When you look at the economic performance, theres nothing wrong with the operations of Portillos, he added. We're still in the low 100%, which in this industry and at this time, represents a 20 to 30 percentage point benefit versus others. He served in the Army for ten years as an enlisted Soldier, Armor officer, Cavalry officer, and Network Engineer. [Operator Instructions] Our first question is from John Glass with Morgan Stanley. In addition, she is responsible for oversight of the Risk Department and serves as the legal advisor to senior management and as corporate secretary. Is that going to be the pattern this year? Managed under the headship of our mentor "Mr Kuldeep Suthar", we have achieved a significant position in this sector. We're now covered for over half our spend throughout the rest of the year. And then do you want us to look at the rest of the year on a 3-year basis? With me on the call today is Michael Osanloo, President and Chief Executive Officer; and Michelle Hook, the company's Chief Financial Officer. Do not sell my personal infoPrivacy PolicyContact UsRSS. Good morning, everyone, and welcome to our fiscal first quarter 2022 earnings call, which is also my first call as Portillo's new Director of Investor Relations. That's a continued trend. This is a true, factual story, he said. And then just on labor, Michelle, can you just help me think through, like going forward, if I look at the change in your labor as a percentage of sales, it kind of looks like exactly what I would expect in terms of high single-digit pricing and low double-digit labor inflation. That said, when we have taken price, there's been little to no resistance or elasticity effect. So how many burgers, chicken sandwiches, beef sandwiches, things that we sell?

As Michael stated earlier, we ultimately view commodity market volatility as transient, but we are taking measures to limit the magnitude, duration and timing of cost increases in key input categories. Near RSMML Mines,RICCO Kaladwas Link Road,Udaipur,Rajasthan.

She resides in Michigan with her husband and their two daughters. Yes. And finally, as I mentioned in the past, the commitment to our Portillo's family is why our turnover continues to trend better than the industry average. This has everything to do with the attention our managers and team members have been giving the overall guest experience. It is mandatory to procure user consent prior to running these cookies on your website. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. This is not an accident. This category only includes cookies that ensures basic functionalities and security features of the website. Find prospects, develop your lists, and track your marketing campaigns without even having to leave the RocketReach suite. Favorite Portillo's Menu Items: Combo Beef and Char-Grilled Italian Sausage Sandwich with hot peppers and the Strawberry Shortcake they always bring back great memories of sharing a special meal with my Dad! Michelle holds an MBA from the University of Michigan, a B.A. We know it's crucial to deliver our delicious menu, our value-driven price point and our unrivaled experience. But opting out of some of these cookies may have an effect on your browsing experience. First, we have very attractive profitability predicated on great revenue. Most recently, Michelle served as Vice President of Finance for global FP&A and investor relations, where she led the teams responsible for supporting global FP&A, strategic finance analytics, U.S. franchise operations and marketing, Domino's technology, and investor relations. I can't talk about our exciting development pipeline without sending my thanks to Sherri Abruscato, our inspiring Chief Development and Supply Chain Officer who's retiring this summer after 44 years of service. We see better order accuracy, speed of service and overall satisfaction. Search and discover companies that match the right target criteria. We will remain that fun, welcoming place that our guests can take their family for a convenient, delicious, high-quality meal at a great price point. But I think when you look -- to your question on forward projections, right, that's where I'm not going to lock ourselves into something now knowing that there could be opportunities in the future. I'm looking forward to working with our analysts and shareholders both current and future and learning more about what resonates with you. And so I know that you said you don't -- the value proposition is still very strong. Our solid development pipeline is on track to deliver 10% unit growth this year, check. Sorry.

But he couldn't stay away for long.

Thank you for participating, and have a pleasant day.

And Andy, I mentioned lapping the 25% in Q2. By clicking Subscribe you agree to our Privacy Policy. Rick lives in Chicagoland with his wife and their four children. Yes. And I was wondering if you could maybe give some context even directionally on how much that might be. And I can tell you that we are 20 to 30 percentage points lower than the rest of our industry, right? Omicron seems to have had an impact on mobility. Javascript is disabled in your web browser. So we think that we're a little bit more sticky than others in the restaurant industry. If you have an ad-blocker enabled you may be blocked from proceeding. And Greg, just to be clear, so for the full year, we're locked in at that almost 55% market basket. How many restaurants we should be adding and how quickly.. Susan joined the company in 1998, after having served as one of the company's outside attorneys for 10 years. Preopening expenses decreased $0.7 million to 0.4% in the first quarter of '22 from 1.1% in the first quarter of '21. His high school sweetheart, he and Gina married in 1981, the same year he became a Portillo's manager. It's early, but we're thrilled about how this restaurant is performing and how guests in St. Pete have responded to us. We can divert our attention to actually going after the customer now! After graduating high school, she pursued other opportunities and in 1983 Portillo's offered her an office position to assist with the needs of the company's growth plans. Is this happening to you frequently? No credit card required.

Osanloo had spent most of his life in the Chicago area, having worked with the Kraft Heinz Company before he moved to Scottsdale, Ariz., in 2015 to take the top job at P.F. I'm not going off of that yet, Sharon, because we do have investments. I was assigned a project recently that regarded public relations, partnership, and outreach responsibilities and RocketReach not only connected me to prospective individuals but allowed me to streamline my search approach on the basis of location, skill set, and keyword. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Got it. Michelle Hook joined Portillo's as Chief Financial Officer in December 2020 after more than 17 years at Domino's. The first is on the traffic. We direct you to our earnings release issued this morning which is available on our website for the reconciliations of these non-GAAP measures to the most comparable GAAP measures. We paid at the very top of the market. I would say overall, there is very little change in mix and sales patterns, et cetera. So when should we see productivity? Barb is also a lifelong Chicagoan, so she's going to be a great resource to help our analysts and our shareholders better understand Portillo's and our growth journey.

Thanks, Michelle. Following these positions in hospitality, Garrett honed his skills in management consulting with Bain & Company in both Boston and Chicago, working across a broad spectrum of industries and functions with a focus on retail brand strategy and commercial due diligence. Select a Column Field to add to the results. Is that just -- given what's going on with supply chain and equipment and things like that? Would that produce like a higher comp on the demand you're seeing? And then what was your third question, Sharon? And then St. Pete is just -- I feel like it's one of those where we did everything really well. Joliet, as I think everyone knows, is a drive-through-only concept for us.