Portillos Inc (PTLO) 2024 Q3 法說會逐字稿

Greetings, and welcome to the Portillo’s third-quarter earnings conference call. (Operator Instructions)

您好，歡迎參加波蒂略第三季財報電話會議。（操作員說明）

As a reminder this conference is being recorded. It is now my pleasure to introduce Kyle Nelsen, Vice President of Investor Relations. Please go ahead.

作為提醒，本次會議正在錄製中。現在我很高興向大家介紹投資者關係副總裁凱爾‧尼爾森 (Kyle Nelsen)。請繼續。

Thank you, operator. Good morning everyone, and welcome to our fiscal third quarter 2024 earnings call. You can find our 10-Q, earnings press release, and supplemental presentation on investors.portillos.com. With me on the call today is Michael Osanloo, President and Chief Executive Officer; and Michelle Hook, Chief Financial Officer.

謝謝你，接線生。大家早安，歡迎參加我們的 2024 年第三季財報電話會議。您可以在 Investors.portillos.com 上找到我們的 10-Q、收益新聞稿和補充簡報。今天與我一起參加電話會議的是總裁兼執行長 Michael Osanloo；和首席財務長米歇爾胡克。

Any commentary made here about our future results and business conditions are forward-looking statements, which are based on management’s current expectations and are not guarantees of future performance. We do not update these forward-looking statements unless required by law. Our 10-K identifies risk factors that may cause our actual results to vary materially from these forward-looking statements.

此處有關我們未來業績和業務狀況的任何評論均為前瞻性陳述，這些陳述基於管理層當前的預期，並非對未來業績的保證。除非法律要求，我們不會更新這些前瞻性聲明。我們的 10-K 確定了可能導致我們的實際結果與這些前瞻性陳述有重大差異的風險因素。

Today’s earnings call will make reference to non-GAAP financial measures, which are not an alternative to GAAP measures. Reconciliations of these non-GAAP measures to their most comparable GAAP counterparts are included in this morning’s posted materials. Finally, after we deliver our prepared remarks, we will open the lines for your questions.

今天的財報電話會議將參考非 GAAP 財務指標，這些指標不能取代 GAAP 指標。今天早上發布的資料中包含了這些非公認會計準則衡量指標與其最具可比性的公認會計準則衡量指標的調節表。最後，在我們發表準備好的發言後，我們將開放您的提問專線。

Now let me turn the call over to Michael Osanloo, President and Chief Executive Officer at Portillo’s.

現在讓我把電話轉給 Portillo’s 總裁兼執行長 Michael Osanloo。

Thank you, Kyle, and good morning everyone, and thanks for joining today’s call. We grew the top line by 7% as we continued expanding in Texas and Sun Belt. We sustained margins and our earnings engine remained strong, but like others in the industry we are up against macroeconomic headwinds and the price wars in quick service, fast casual and even casual dining are very real.

謝謝凱爾，大家早安，謝謝您參加今天的電話會議。隨著我們繼續在德克薩斯州和陽光地帶擴張，我們的收入增加了 7%。我們維持了利潤率，獲利引擎依然強勁，但與業內其他公司一樣，我們面臨著宏觀經濟的逆風，快速服務、快速休閒甚至休閒餐飲領域的價格戰是非常真實的。

Q3 comp sales growth was challenged by this rampant discounting and Portillo’s does not play the discount game. We compete on great everyday pricing for our craveable food and abundant portions, and we know this approach will benefit us in the medium and long term.

第三季的同品銷售成長受到了這種猖獗折扣的挑戰，而 Portillo's 並不玩折扣遊戲。我們在日常定價上為我們渴望的食物和豐富的分量進行競爭，我們知道這種方法將在中長期使我們受益。

We also know every time we've invested in advertising, we've seen a benefit to traffic. This was again evident in our recent Chicagoland advertising campaign, but the noise created by the restaurant price wars and the election season reduced the overall positive impact. As a result, this campaign didn't achieve the same incrementality we saw in Q4 of last year. Based on everything we've observed, we now expect full year comp sales to be approximately negative 1%.

我們也知道，每次我們投資廣告時，我們都會看到流量的好處。這在我們最近的芝加哥廣告活動中再次體現，但餐廳價格戰和選舉季節產生的噪音降低了整體的正面影響。因此，這次活動沒有達到我們去年第四季看到的相同的增量。根據我們觀察到的一切，我們現在預計全年銷售額將約為負 1%。

While challenged on the top line, I'm very proud of how our team is protecting margins and driving cash flow. They did a great job of controlling labor and food costs to achieve 23.5% restaurant level margins and I'm especially proud of how we've managed G&A to achieve adjusted EBITDA growth.

儘管在收入方面面臨挑戰，但我對我們的團隊如何保護利潤和推動現金流感到非常自豪。他們在控制勞動力和食品成本方面做得很好，實現了 23.5% 的餐廳水平利潤率，我對我們如何管理一般行政費用以實現調整後 EBITDA 增長感到特別自豪。

Our adjusted EBITDA of $27.9 million reaffirms that we know how to pull the right levers to protect the bottom line. But we also know we need to reverse the negative comp sales trend and drive momentum in our business and the path forward always comes back to our strategic pillars.

我們調整後的 EBITDA 為 2790 萬美元，這再次證明我們知道如何利用正確的槓桿來保護利潤。但我們也知道，我們需要扭轉負面的銷售趨勢並推動我們業務的發展勢頭，而前進的道路總是回到我們的策略支柱。

First, let's talk about how we're innovating and amplifying the Portillo's experience through technology. Last quarter, we announced a pilot program for kiosks. We deployed and tested them in two restaurants in August. Now this test was a resounding success with minimal upfront costs and immediate guest adoption.

首先，我們來談談我們如何透過技術創新和擴大 Portillo 的體驗。上季度，我們宣布了自助服務終端試點計畫。八月份，我們在兩家餐廳部署並測試了它們。現在，該測試取得了巨大成功，前期成本極低，客戶立即採用。

We were so pleased with the results that we quickly expanded the program and as of today, we now have kiosks deployed in all of our restaurants and we'll get that benefit going forward. I love making Portillo's more frictionless. It's undeniable that our guests love using the kiosks.

我們對結果非常滿意，因此我們迅速擴大了該計劃，從今天開始，我們現在在所有餐廳都部署了資訊亭，我們將繼續獲得這種好處。我喜歡讓波蒂略的更加無摩擦。不可否認，我們的客人喜歡使用自助服務終端。

At the same time, it's undeniable we have guests who love ordering with our front cashiers. No matter how guests want to interact with Portillo's, we're meeting them where they want. It's early, but we're already seeing similar benefits from kiosks as other brands have experienced. As we continue to learn and grow with them, we aim to enhance these benefits even further. We expect to be able to quantify the kiosk impact early next year.

同時，不可否認的是，我們有些客人喜歡透過我們的前台收銀員點餐。無論客人希望如何與 Portillo’s 互動，我們都會在他們想要的地方與他們會面。現在還為時過早，但我們已經看到了與其他品牌所經歷過的自助服務終端類似的好處。隨著我們繼續與他們一起學習和成長，我們的目標是進一步增強這些優勢。我們預計明年初將能夠量化自助服務終端的影響。

Also next year, we'll pulse advertising in Dallas Fort Worth as we scale up. The ad campaigns will educate and reintroduce even more guests to Portillo's. Previous ad campaigns in new markets have all driven meaningful traffic lifts and we're confident Dallas will respond similarly.

同樣，明年，隨著規模的擴大，我們將在達拉斯沃斯堡投放廣告。這些廣告活動將教育並重新介紹更多客人光臨波蒂略餐廳。先前在新市場的廣告活動都帶來了有意義的流量提升，我們相信達拉斯也會做出類似的反應。

Our second strategic pillar focuses on building restaurants with industry-leading returns. I'm excited to share that last month we opened our first Houston area restaurant in Richmond, Texas. This marks a significant milestone as we expand further into Texas in the Sun Belt.

我們的第二個策略支柱專注於打造具有業界領先回報的餐廳。我很高興與大家分享，上個月我們在德州里士滿開設了第一家休士頓地區餐廳。這標誌著我們進一步擴展到德州陽光地帶的一個重要里程碑。

The reception in Houston has been incredible. Richmond sales are in line with what we observed two years ago in The Colony, our first Dallas area restaurant. It's clear guests are just as excited to see us in Houston as they were in Dallas and we remain on track to open 10 restaurants this year. We have an exciting pipeline next year that will grow our restaurant count by 12% to 15%.

休士頓的接待令人難以置信。里士滿的銷售額與我們兩年前在達拉斯地區第一家餐廳 The Colony 觀察到的情況一致。很明顯，客人們在休士頓見到我們就像在達拉斯一樣興奮，而且我們今年仍有望開設 10 家餐廳。明年我們將有一個令人興奮的管道，將使我們的餐廳數量增加 12% 至 15%。

Equally exciting is how we're refining our development model. We've already made strides to reduce the size of our restaurants. Later this quarter, our first two restaurant of the future builds at 6,200 square feet will open in Texas. These smaller, more efficient restaurants will still look beautiful and maintain their local flair, but they will be 1500 square feet smaller. We expect them to come in at the low end of our net construction cost range of $5.2 million to $5.5 million and we will be using this prototype for all of our 2025 bills.

同樣令人興奮的是我們如何完善我們的開發模式。我們已經在縮小餐廳規模方面取得了長足進步。本季度晚些時候，我們未來建造的前兩家餐廳將在德克薩斯州開業，面積為 6,200 平方英尺。這些更小、更有效率的餐廳仍然會看起來很漂亮並保持其當地風格，但它們的面積將小 1500 平方英尺。我們預計它們將處於我們淨建設成本範圍 520 萬至 550 萬美元的低端，我們將在 2025 年的所有帳單中使用這個原型。

As we continue to expand, our priority remains finding great locations where new restaurants can thrive. To further optimize our cash-on-cash returns, we'll explore different building and real estate structures. We'll continue to take square footage out of our restaurants. We'll seek increased tenant allowances on our leases and we'll explore build-to-suit and reverse build-to-suit opportunities.

隨著我們不斷擴張，我們的首要任務仍然是尋找新餐廳能夠蓬勃發展的絕佳地點。為了進一步優化我們的現金回報，我們將探索不同的建築和房地產結構。我們將繼續減少餐廳的面積。我們將尋求增加租約中的租戶津貼，並將探索量身定制和反向定制的機會。

Ultimately, we build great restaurants in the best locations for Portillo's while bolstering our returns. Our other strategic pillars remain just as crucial running world class restaurants with great people and continuing to refine operations to support long-term success. We're committed to developing our teams, strengthening operations and creating memorable guest experiences that differentiate us in the crowded restaurant landscape. That's how we win.

最終，我們在 Portillo's 的最佳地點建造了一流的餐廳，同時提高了我們的回報。我們的其他策略支柱仍然同樣重要，即與優秀人才一起經營世界一流的餐廳，並繼續完善營運以支持長期成功。我們致力於發展我們的團隊、加強營運並創造令人難忘的賓客體驗，使我們在擁擠的餐廳環境中脫穎而出。這就是我們獲勝的方式。

Despite the top line challenges we encountered this quarter, I want to reiterate that we control the levers that matter most. We know how to weather difficult periods while staying focused on profitability. We will not compromise our long-term health for short-term benefit and we're confident in the actions we're taking to address current trends. We're excited about the future whether it's the benefit of kiosks, our real estate momentum or the improvements we're making to our restaurant operations.

儘管我們本季遇到了頂線挑戰，但我想重申，我們控制著最重要的槓桿。我們知道如何度過困難時期，同時專注於獲利能力。我們不會為了短期利益而犧牲長期健康，我們對為應對當前趨勢所採取的行動充滿信心。我們對未來感到興奮，無論是自助終端的好處、我們的房地產勢頭還是我們對餐廳營運所做的改進。

There's still work to do, no question, but I remain confident we're on the right path. In this tumultuous environment, we're still generating cash flow, we're still funding all of our own growth and we're still in a strong financial position. Our team is focused, energized and ready to drive the business forward.

毫無疑問，還有很多工作要做，但我仍然相信我們走在正確的道路上。在這個動盪的環境中，我們仍然在產生現金流，我們仍然為我們自己的成長提供資金，我們仍然處於強勁的財務狀況。我們的團隊專注、充滿活力，隨時準備好推動業務向前發展。

Thank you. And with that, I'll turn it over to Michelle to walk through the financials in more detail.

謝謝。接下來，我將把它交給米歇爾，讓她更詳細地了解財務狀況。

Great. Thank you, Michael, and good morning, everyone. In Q3, revenue growth was driven by the opening of new restaurants. During the Q3, revenues were $178.3 million reflecting an increase of $11.4 million or 6.9% compared to last year. Restaurants not in our comparable restaurant base contributed $13.6 million of the total year over year increase. These increases in revenues were partially offset by a same-restaurant sales decrease of 0.9%, which drove revenues down $1.4 million in the quarter.

偉大的。謝謝你，邁克爾，大家早安。第三季度，新餐廳的開幕推動了收入成長。第三季度，營收為 1.783 億美元，比去年增加 1,140 萬美元，增幅為 6.9%。不屬於我們可比餐廳基礎的餐廳貢獻了 1,360 萬美元的年成長總額。這些收入的成長被同店銷售額下降 0.9% 部分抵消，導致本季營收減少 140 萬美元。

The same-restaurant sales decrease was driven by a decrease in transactions of 3.5%, partially offset by an increase in average check of 2.6%. The higher average check was driven by an approximate 4.4% increase in certain menu prices, partially offset by product mix. Revenue was also negatively impacted by $1 million in the third quarter due to the shifting of comparable weeks.

同餐廳銷售額下降的原因是交易量下降 3.5%，但部分被平均支票量增加 2.6% 所抵銷。平均支票較高是由於某些菜單價格上漲約 4.4%，但部分被產品組合所抵消。由於可比周數的變化，第三季的收入也受到了 100 萬美元的負面影響。

Comp on a two-year stack basis was 2.9%. Despite softer comp sales during the quarter, the kiosk rollout has been a win. We see a positive impact on our ticket driven by higher attach rates, especially on add-ons such as cheese sauce, peppers, fries and drinks. We did not take any pricing actions this past quarter and were at an effective price increase of just over 4%. We have no plans to take pricing during the fourth quarter, which will keep our pricing levels consistent with the third quarter.

兩年堆疊基礎上的比較為 2.9%。儘管本季銷售疲軟，但自助服務終端的推出還是取得了勝利。我們看到更高的附加率對我們的門票產生了積極的影響，尤其是起司醬、辣椒、薯條和飲料等附加產品。上個季度我們沒有採取任何定價行動，有效價格漲幅略高於 4%。我們沒有計劃在第四季度定價，這將使我們的定價水準與第三季保持一致。

As we look to the fourth quarter, we expect our revenue growth to continue to be driven by the opening of new restaurants. We opened our first restaurant in Houston in October and plan to open five additional restaurants this year, all in December. Given the softer comp trends and the discounting environment, we are now targeting negative comparable sales of approximately 1% for full year 2024.

展望第四季度，我們預計新餐廳的開設將繼續推動我們的營收成長。我們於 10 月在休士頓開設了第一家餐廳，並計劃今年再開設 5 家餐廳，兩者皆在 12 月。鑑於比較疲軟的競爭趨勢和折扣環境，我們目前的目標是 2024 年全年可比銷售額負數下降約 1%。

Moving on to our costs. Food, beverage and packaging costs as a percentage of revenues increased to 33.7% in the third quarter of 2024 from 33.3% in the third quarter of 2023. This increase was primarily due to a 3.6% increase in commodity prices, partially offset by increases in our average check.

繼續我們的成本。食品、飲料和包裝成本佔收入的百分比從 2023 年第三季的 33.3% 增加到 2024 年第三季的 33.7%。這一增長主要是由於商品價格上漲 3.6%，但部分被我們的平均支票增長所抵消。

In the third quarter, we experienced increases in produce, chicken and dairy products. We are still estimating commodity inflation in the mid-single digits in 2024. Labor as a percentage of revenues increased to 25.8% in the third quarter of 2024 from 25.5% in the third quarter of 2023.

第三季度，我們經歷了農產品、雞肉和乳製品的成長。我們預期 2024 年大宗商品通膨率仍處於中個位數。勞動力佔收入的百分比從 2023 年第三季的 25.5% 增至 2024 年第三季的 25.8%。

The increase was due to lower transactions and incremental wage and benefits to support our team members, partially offset by an increase in our average check. Hourly labor rates were up 2.8% in the third quarter of 2024 and 3% year-to-date versus the prior year periods. We now project labor inflation to be approximately 3% for full year 2024.

增加的原因是交易量減少以及支持我們團隊成員的薪資和福利增加，但部分被我們平均支票的增加所抵消。2024 年第三季每小時勞動費率較去年同期上漲 2.8%，年初至今上漲 3%。我們現在預計 2024 年全年勞動力通膨率約為 3%。

Other operating expenses increased $2.5 million or 13.4% in the third quarter of 2024 compared to the third quarter of 2023, which was primarily driven by the opening of new restaurants and an increase in repairs and maintenance, partially offset by a decrease in insurance expense.

與2023 年第三季相比，2024 年第三季其他營運支出增加了250 萬美元，即13.4%，這主要是由於新餐廳的開業以及維修和保養的增加造成的，但部分被保險費用的減少所抵消。

As a percentage of revenues, other operating expenses increased to 11.8% from 11.1% in the prior year. Occupancy expenses increased $1 million or 11.7% in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the opening of new restaurants. As a percentage of revenues, occupancy expenses increased 0.2% compared to the prior year.

其他營運費用佔收入的比例從去年的 11.1% 上升至 11.8%。與 2023 年第三季相比，2024 年第三季的入住費用增加了 100 萬美元，即 11.7%，這主要是由於新餐廳的開業。入住費用佔收入的百分比比前一年增加了 0.2%。

Restaurant level adjusted EBITDA increased 0.1% to $41.9 million in the third quarter of 2024. Restaurant level adjusted EBITDA margins were 23.5% in the third quarter of 2024 versus 25.1% in the third quarter of 2023. This reflects a decline of 160 basis points year over year.

2024 年第三季度，餐廳調整後 EBITDA 成長 0.1%，達到 4,190 萬美元。2024 年第三季餐廳調整後 EBITDA 利潤率為 23.5%，而 2023 年第三季為 25.1%。這反映出年減 160 個基點。

Year-to-date, restaurant level adjusted EBITDA margins were 23.4%, which is 90 basis points lower than prior year. Despite softer sales, these margins reflect how disciplined we've been with managing our costs. We are still estimating our restaurant level adjusted EBITDA margins to be in the range of 23% to 24% in 2024.

年初至今，餐廳層級調整後 EBITDA 利潤率為 23.4%，比前一年低 90 個基點。儘管銷售疲軟，這些利潤率反映了我們在管理成本方面的嚴格程度。我們仍預期 2024 年餐廳水準調整後 EBITDA 利潤率將在 23% 至 24% 之間。

Our general and administrative expenses decreased by $0.6 million dollars to $18.3 million or 10.3% of revenue in the third quarter of 2024 from $18.9 million or 11.3% of revenue in the third quarter of 2023. The decrease was primarily driven by lower variable and equity-based compensation, partially offset by an increase in advertising expense of $1.1 million. We will continue to invest in advertising in the fourth quarter this year as well as other strategic initiatives, but we'll remain disciplined in our investment approach.

我們的一般和管理費用從 2023 年第三季的 1890 萬美元（佔收入的 11.3%）減少 60 萬美元至 1830 萬美元（佔收入的 10.3%）。這一下降主要是由於可變薪酬和股權薪酬下降所致，但廣告費用增加 110 萬美元部分抵消了下降。我們將在今年第四季繼續投資廣告以及其他策略性舉措，但我們將在投資方法上保持嚴格。

We are now estimating G&A expenses to be between $78 million to $80 million in 2024. Preopening expenses decreased $0.7 million to 1% in the third quarter of 2024 from 1.4% in the third quarter of 2023. The decrease was due to the number and timing of executed and planned new restaurant openings. All this led to adjusted EBITDA of $27.9 million in the third quarter of 2024 versus $27.3 million in the third quarter of 2023, an increase of 2.3%.

我們目前預計 2024 年的一般管理費用將在 7,800 萬美元至 8,000 萬美元之間。開業前費用從 2023 年第三季的 1.4% 減少 70 萬美元至 2024 年第三季的 1%。減少的原因是已執行和計劃開設新餐廳的數量和時間。所有這些導致 2024 年第三季調整後 EBITDA 為 2,790 萬美元，而 2023 年第三季為 2,730 萬美元，成長 2.3%。

Below the EBITDA line, interest expense was $6.5 million in the third quarter of 2024, a decrease of $0.1 million from the third quarter of 2023. This decrease was driven by a lower effective interest rate, partially offset by additional borrowings on the revolver facility. As of today, our outstanding borrowings under the revolver are $22 million. Our effective interest rate on the 2023 term loan and revolver facility is 8.3% versus 8.5% for 2023.

在 EBITDA 線以下，2024 年第三季的利息支出為 650 萬美元，比 2023 年第三季減少 10 萬美元。這一下降是由於實際利率較低所致，但部分被循環貸款便利的額外借款所抵消。截至今天，我們的左輪手槍未償還借款為 2,200 萬美元。我們 2023 年定期貸款和循環貸款便利的實際利率為 8.3%，而 2023 年為 8.5%。

Income tax expense was $2.5 million in the third quarter of 2024. Our effective tax rate for the third quarter was 22.4%. We continue to expect the full year tax rate to be approximately 21% to 23%. Cash from operations increased by 34.3% year over year to $72 million year-to-date. We ended the quarter with $18.5 million in cash.

2024 年第三季所得稅費用為 250 萬美元。我們第三季的有效稅率為 22.4%。我們繼續預計全年稅率約為 21% 至 23%。年初至今，營運現金年增 34.3% 至 7,200 萬美元。本季結束時，我們擁有 1850 萬美元現金。

Despite the sales softness we experienced during the quarter, we continue to deliver healthy margins and generated more adjusted EBITDA than the prior year, highlighting the durability and cash generation of our brand. We continue to believe that we are well positioned with our balance sheet to support our growth in new restaurant openings this year and beyond.

儘管我們在本季度經歷了銷售疲軟，但我們繼續提供健康的利潤率，並產生比前一年更多的調整後 EBITDA，凸顯了我們品牌的耐用性和現金生成能力。我們仍然相信，我們的資產負債表處於有利地位，可以支持今年及以後新餐廳開幕的成長。

Thank you for your time, and with that, I'll turn it back to Michael.

感謝您抽出寶貴的時間，我會將其轉回給邁克爾。

Thanks, Michelle. We're operating in a tough market. Brands are discounting heavily and engaging in price wars to chase short term sales. That's not the path we will take. We're focused on protecting our margins and preserving cash by staying disciplined and pulling the right levers. We know who we are and we won't compromise our brand by going on sale or compromising on quality.

謝謝，米歇爾。我們正在一個艱難的市場中運作。品牌紛紛大幅打折，展開價格戰以追逐短期銷售。這不是我們要走的路。我們致力於透過保持紀律和拉動正確的槓桿來保護我們的利潤並保留現金。我們知道我們是誰，我們不會透過銷售或品質妥協來損害我們的品牌。

Our strategy is rooted in long-term success not quick fixes. We'll continue to invest in our amazing people, strengthen operations and fuel smart growth. We're profitable, we're controlling what we can and we're positioned to emerge from this economic cycle even stronger. We're very confident in our ability to turn momentum in our favor and deliver lasting long-term results. Thank you.

我們的策略植根於長期成功，而不是權宜之計。我們將繼續投資於我們優秀的員工，加強營運並推動明智的成長。我們正在獲利，我們正在盡我們所能進行控制，我們準備好在這個經濟週期中變得更加強大。我們對扭轉勢頭並取得持久的長期成果的能力充滿信心。謝謝。

(Operator Instructions) Sharon Zackfia, William Blair.

（操作員說明）Sharon Zackfia、William Blair。

Hi, good morning. I guess, as you were talking, Michael, clearly one way to communicate value would be through a loyalty program, and I think last call, you were talking about some initial forays into exploring that. So if you can maybe update your thoughts on loyalty. And also, I don't think you updated any comments around kind of speed of service at the drive-thru, which I know is also a focus. So if you can give us an update on that. Thanks.

嗨，早安。我想，正如你所說，邁克爾，顯然，傳達價值的一種方式是透過忠誠度計劃，我想最後一次通話，你正在談論探索這一點的一些初步嘗試。因此，您是否可以更新您對忠誠度的看法。而且，我認為您沒有更新任何關於得來速服務速度的評論，我知道這也是一個焦點。那麼您能否向我們提供最新情況。謝謝。

You bet. Thanks, Sharon. So on loyalty, great question. We are continuing to work on this behind the scenes. I'm very pleased with the progress the team is making, and I look forward to making an announcement early next year on loyalty.

你打賭。謝謝，莎倫。關於忠誠度，這是一個很好的問題。我們正在幕後繼續努力。我對團隊的進展感到非常滿意，我期待明年初就忠誠度問題發佈公告。

Our philosophy is we'd rather announce something when it's done and we're rolling it out as opposed to sort of pre-announce that we're doing something, but early next year, we're looking forward to making an announcement.

我們的理念是，我們寧願在事情完成後宣布，我們正在推出它，而不是預先宣布我們正在做某事，但明年初，我們期待發佈公告。

And then with regard to ops, and then with regard to ops, I feel great about the progress. I think we've captured most of the low hanging fruit, and we're seeing that benefit, but I think it's undeniable that the pressure for us is -- there's a lot of pressure in the drive-thru. That's where we primarily compete against QSR and so I want more out of our drive thru.

然後就操作而言，然後就操作而言，我對進展感到非常高興。我認為我們已經抓住了大部分容易實現的目標，我們看到了這種好處，但我認為不可否認的是，我們面臨的壓力是——得來速有很大的壓力。這就是我們主要與 QSR 競爭的地方，所以我希望我們的得來速能得到更多。

So I do want to see continued progress and continued momentum on the little things that we can do to be better, right? So in this environment, it's all the little things that we have to get better at. Over the last three or four months, the low hanging fruit, good. Now it's a little bit more of the complicated stuff that we've got to fix.

因此，我確實希望看到我們在可以做得更好的小事上不斷取得進展和持續動力，對吧？因此，在這種環境下，我們必須在所有小事上做得更好。在過去的三、四個月裡，唾手可得的成果很好。現在我們需要解決的問題有點複雜。

David Tarantino, Baird.

大衛·塔倫蒂諾，貝爾德。

Hi, good morning. Just a clarification question on how you're thinking about the fourth quarter. So I know the full-year guidance implies not much improvement in the comps and you mentioned having kiosk now fully rolled out.

嗨，早安。只是一個關於您如何看待第四季度的澄清問題。因此，我知道全年指導意味著比較方面沒有太大改進，並且您提到現在已經全面推出了資訊亭。

So just wondering if you could reconcile those two things since it sounds like the kiosks is adding some positive benefits to the comp. So could you help us kind of understand the puts and takes around the implied fourth quarter outlook?

所以只是想知道你是否可以協調這兩件事，因為聽起來資訊亭正在為競爭增加一些積極的好處。那麼您能否幫助我們了解隱含的第四季前景的看跌期權和看跌期權？

Yes, David, it's a good question, and you're absolutely right. We aren't anticipating in that guide significant improvement in fourth quarter, particularly as we have a month under our belt and so we are seeing improvement in the mix.

是的，大衛，這是一個很好的問題，你是完全正確的。我們預計第四季度的指南不會有顯著改善，特別是因為我們已經有一個月的時間了，所以我們看到了組合的改善。

You saw a little bit of that in Q3 with the improvement in mix from prior quarters, but we're still seeing the impacts of the macro and the discounting on the traffic, and so as we sit here today, we don't see that significantly improving.

您在第三季度看到了一些情況，與前幾季相比，混合情況有所改善，但我們仍然看到宏觀經濟和流量折扣的影響，所以當我們今天坐在這裡時，我們沒有看到這一點顯著改善。

And so I think it's largely what you're seeing and what you saw in Q3, maybe a little bit improvement on mix in Q4 as we have that kiosk, the kiosk rolled out now, but as Michael and I sit here, there's still a lot of unknowns, David, as we roll into November December.

所以我認為這很大程度上是你所看到的以及你在第三季度看到的，也許第四季度的混合有所改善，因為我們有那個資訊亭，資訊亭現在已經推出，但當邁克爾和我坐在這裡時，仍然有一個大衛，當我們進入十一月十二月時，還有很多未知數。

As you know, we have a heavily dependent catering business. Our comp still, we still have 70 restaurants in the comp base. Most of those are in the Midwest and so we had really good weather last year. We were rolling over our advertising campaign in Q4.

如您所知，我們有一個嚴重依賴的餐飲業務。我們的補償基地仍然有 70 家餐廳。其中大部分位於中西部，所以去年我們的天氣非常好。我們在第四季度滾動了我們的廣告活動。

So we just want to be a little bit cautious as we go into November December knowing that we have those unknowns out there as well in Q4, but that's some of the context around why the guide to negative one for the year.

因此，當我們進入 11 月 12 月時，我們只是想保持一點謹慎，因為我們知道第四季度也存在這些未知因素，但這就是為什麼今年的指南為負值的一些背景。

Got it. Thank you for that. And then, Michael, you mentioned advertising in Dallas, which sounds awfully early in the brand's lifecycle to be adding advertising to that market. So can you just maybe talk about why you think that's necessary and what your vision for the impact of that looks like and whether you're reacting to anything or whether this is more proactive brand building?

知道了。謝謝你。然後，邁克爾，您提到了在達拉斯的廣告，這聽起來在該品牌生命週期的早期階段就向該市場添加廣告。那麼，您能否談談為什麼您認為這是必要的，您對其影響的願景是什麼，以及您是否對任何事情做出反應，或者這是否是更積極主動的品牌建設？

Yes. I would characterize it as opportunistic in brand building. So the reality is that when we turn on the spigot and do some marketing in Dallas, we're going to be looking at eight restaurants. We're going to have at the back half of the year, it's going to be closer to 10 restaurants and that is definitely a viable scale to justify advertising and get attractive returns on it.

是的。我將其描述為品牌建立中的機會主義。所以現實是，當我們打開水龍頭並在達拉斯進行一些行銷時，我們將考慮八家餐廳。我們將在今年下半年開設接近 10 家餐廳，這絕對是一個可行的規模，可以證明廣告的合理性並獲得可觀的回報。

And as thrilled as I am with the performance of our Dallas business -- of our Dallas Fort Worth business, it's undeniable that we're still a relative unknown and so one of the things that's important is as we're growing these markets is to generate trial and awareness and so I'm thrilled with the direction of Dallas.

儘管我對達拉斯沃思堡業務的表現感到興奮，但不可否認的是，我們仍然相對不知名，因此重要的事情之一是，隨著我們不斷發展這些市場，產生嘗試和意識，所以我對達拉斯的方向感到興奮。

I love the fact that we're getting to a scale where we can throw some gasoline on that fire and watch it take off. So that is purely the strategy.

我喜歡這樣一個事實：我們已經達到了可以向火上扔一些汽油並看著它起飛的規模。所以這純粹是策略。

Great. Thank you very much.

偉大的。非常感謝。

You bet, David.

你敢打賭，大衛。

Jim Salera, Stephens Inc.

吉姆·薩萊拉，史蒂芬斯公司

Yes. Good morning. Thanks for taking our questions. First, I wanted to ask about Michael, you mentioned some flexibility on the sizes for some of the big store builds. Can you just talk about what you think would change? Is that shrinking the dining area? Is there reductions in the back of the house that you can make? And just kind of what that would look like?

是的。早安.感謝您回答我們的問題。首先，我想問邁克爾，你提到了一些大型商店建築尺寸的靈活性。你能談談你認為會改變什麼嗎？用餐面積會縮小嗎？您可以減少房屋後方的面積嗎？那會是什麼樣子呢？

Yes. It's a great question, Jim. I'm excited like -- we're opening the first of what we have been calling restaurant of the future. We're opening those in the next month, and there's three of them coming online and here's the difference. We went from, call it, a standard prototype of 7,800 square feet to now 6,250.

是的。這是一個很好的問題，吉姆。我很興奮——我們即將開設第一家我們稱之為未來的餐廳。我們將在下個月開放這些項目，其中三個將上線，區別如下。我們從 7,800 平方英尺的標準原型發展到現在的 6,250 平方英尺。

We've shaved a bunch of money out of this, and I would say that this restaurant is pivoting towards what consumers want today and tomorrow, and in the years to come. It's less reliant on dine in. We go look at our restaurants. We've done time motion studies, looked at how many cars are in the parking lot at lunchtime and dinnertime and the truth is that people are pivoting to more and more off premises dining.

我們已經從中賺了一大筆錢，我想說這家餐廳正在轉向消費者今天、明天以及未來幾年想要的東西。它對堂食的依賴較小。我們去看看我們的餐廳。我們進行了時間運動研究，觀察了午餐時間和晚餐時間停車場裡有多少輛車，事實是人們正在轉向越來越多的場外用餐。

So I want these restaurants to still do Portillo's AUVs, but I don't need it all to be in the dining room. More and more people want to take the food off-site. So you need -- for Portillo's to be successful, we need a great drive-thru. You need a great momentum for third party and order pickup and digital. And so we have doors on the side of the building with pickup shelves just inside and parking spots dedicated to that.

所以我希望這些餐廳仍然做 Portillo 的 AUV，但我不需要全部都放在餐廳裡。越來越多的人希望將食物帶到場外。所以，為了讓 Portillo's 成功，我們需要一個很棒的得來速服務。您需要第三方、訂單取貨和數位化的強勁動力。因此，我們在建築物的一側設有門，內部設有皮卡車架和專用於此的停車位。

We're pivoting the restaurant to be a slightly different mix than it has been historically. That opens up we don't need quite as much dining room space. We're being way smarter and more thoughtful about the kitchen.

我們正在將餐廳轉變為與歷史上略有不同的組合。這表明我們不需要那麼多的餐廳空間。我們對廚房變得更加聰明、更加周到。

We think that we can continue to consolidate the kitchen, but I don't want it to be a stainless-steel box where you're taking hot food out of cabinets. You still want all the excitement of a Portillo's kitchen. You want that food theater. You want to see flames shooting out of the broiler. You want to see people assembling the hot dogs. You want to see the beef coming out of the steam well.

我們認為我們可以繼續整合廚房，但我不希望它成為一個不銹鋼盒子，你可以從櫃子裡取出熱食。您仍然想要波蒂略廚房的所有刺激。你想要那個美食劇院。您想看到火焰從肉雞中噴出。你想看到人們組裝熱狗。你想看到牛肉從蒸氣中出來。

And so the balancing act is take away dead space while still providing a Portillo's experience, Portillo's vibe, overall, all of those things that note fresh, delicious food made to order. And that's really the 1,600 square feet.

因此，平衡的做法是消除死角，同時仍然提供波蒂略的體驗、波蒂略的氛圍，總的來說，所有這些都表明新鮮、美味的食物是客製化的。這確實是 1,600 平方英尺。

We grew up founder led, some dead space in the kitchen, dead space in the dining room, and I think we've gotten way more efficient. And the important thing is, Jim, we're not done with that. I think one of the things that is clear to me is the amount of dollars that we put into our buildings is still relatively high, and I want to bring that down.

我們是在創辦人的帶領下長大的，廚房裡有一些死角，餐廳裡有一些死角，我認為我們的效率已經提高了很多。重要的是，吉姆，我們的工作還沒結束。我認為我清楚的一件事是，我們投入到建築物中的美元數量仍然相對較高，我想降低這一點。

And so we're looking at a version 2.0 of restaurant of the future that we think can be smaller. And I think we're looking at doing some smart things with landlord financing and other forms of financing so that Portillo's is not necessarily putting all of the capital into the building, but it's more of a shared mindset with our landlords.

因此，我們正在尋找未來餐廳的 2.0 版本，我們認為它可以更小。我認為我們正在考慮透過房東融資和其他形式的融資來做一些明智的事情，這樣波蒂略不一定會將所有資本投入到大樓中，但更多的是與我們的房東達成共識。

That's great. I appreciate all the detail there. Maybe one follow-up question. As we're thinking about flexibility on the restaurant side, maybe also on some of the communications to consumers, typically your marketing has really been centered on the high quality and really the unique flavor experience of Portillo's.

那太棒了。我很欣賞那裡的所有細節。也許還有一個後續問題。當我們考慮餐廳方面的靈活性時，也許還考慮與消費者的一些溝通時，通常您的行銷實際上集中在 Portillo's 的高品質和獨特的風味體驗上。

Do you feel that you need maybe more price point marketing or maybe like a value menu or something that can still capitalize on the high-quality consumption experience, but maybe have some everyday value offerings that can also appeal to the lower end consumer without having to discount the whole menu?

您是否覺得您需要更多的價位行銷，或者可能需要一個超值菜單或仍然可以利用高品質消費體驗的東西，但也許有一些日常價值產品也可以吸引低端消費者，而無需整個菜單打折嗎？

It's funny, we've done a lot of consumer segmentation to understand who our consumer is and why they come to Portillo's. We unsurprisingly probably, we have a lower percentage of that true value consumer. So we're not quite as reliant on them. And when they come, they tend to come through the drive thru.

有趣的是，我們做了很多消費者細分，以了解我們的消費者是誰以及他們為什麼來到 Portillo's。毫不奇怪，我們真正的價值消費者的比例較低。所以我們不太依賴他們。當他們來的時候，他們往往是透過汽車餐廳來的。

I think it would be false to who we are to go in that direction. I don't want to get into the discounting business. I don't want a value menu. I think that would be a very, very ugly path for Portillo's. I think that where we have to stick to our guns is we have every day great value, we have fantastic high-quality food, we never skimp on quality, and we have abundant portions.

我認為，如果我們朝著這個方向前進，那就是錯的。我不想涉足折扣行業。我不想要超值選單。我認為這對波蒂略來說將是一條非常非常醜陋的道路。我認為我們必須堅持的地方是我們每天都有巨大的價值，我們有很棒的高品質食物，我們從不吝惜質量，而且我們有充足的份量。

Our guests know that, and we continue to reiterate that in all of our marketing. So whether it's digital and whether it's the PR we do, in new markets, Jim, we put a lot of food in people's mouths because I think maybe I'm a dinosaur, but I think that trying our food is the best marketing you can do.

我們的客人知道這一點，我們將在所有行銷活動中繼續重申這一點。因此，無論是數位化還是我們在新市場所做的公關，吉姆，我們將很多食物放入人們的嘴裡，因為我認為也許我是恐龍，但我認為嘗試我們的食物是最好的營銷方式做。

And so we spend a lot of time and energy putting Portillo's beef sandwiches and hot dogs and burgers and fries and shakes in people's mouths. That's being true to who we are. So I don't want to do short term things because of short term economic cycles. I want to make sure we're protecting this brand for the medium and long term and just avoid like the plague discounting.

因此，我們花了大量的時間和精力將波蒂略的牛肉三明治、熱狗、漢堡、薯條和奶昔送到人們的嘴裡。這就是忠於我們自己。所以我不想因為短期的經濟週期而做短期的事。我想確保我們在中長期內保護這個品牌，並避免像瘟疫一樣的折扣。

Great. Appreciate all the color. I'll hop back in the queue.

偉大的。欣賞所有的顏色。我會跳回到隊列中。

Brian Harbour, Morgan Stanley.

布萊恩‧哈伯，摩根士丹利。

Yes. Thanks. Good morning, guys. Just some of the advertising you did in the third quarter, was that sort of you didn't change that or anything with regards to timing or amount, did you? Or I don't know if there was any shift there. Why do you think that was sort of perhaps -- I guess it was just the value environment, but any other reasons you think it might have been less effective?

是的。謝謝。早安，夥計們。只是您在第三季所做的一些廣告，您在時間或金額方面沒有改變嗎？或者我不知道那裡是否有任何轉變。為什麼你認為這可能是——我想這只是價值環境的問題，但你認為它可能不太有效的任何其他原因？

No, I think it's I mean, honestly, it's as simple as that. We did all the testing. The media buy was excellent. The placements were fantastic. Every sort of objective test we did on the advertising set, it's phenomenal, it's breakthrough, et cetera, et cetera. It's just that in a landscape where everybody is screaming, here's a bag of food for $5 here's a bag of food for $6 all of that.

不，我想我的意思是，老實說，就這麼簡單。我們做了所有的測試。媒體購買非常好。展示位置非常棒。我們在廣告設定上所做的每一種客觀測試，都是驚人的、突破性的，等等。只是在每個人都在尖叫的情況下，這裡一袋食物 5 美元，這裡一袋食物 6 美元，所有這些。

And then with the plethora of political campaigns, I think it just muted the positive impact of it a little bit. And I don't want to lose focus, Brian. It was still positive and it was still a very rational good business decision. It just wasn't quite as positive as the marketing that we did last year despite the fact that I think objectively it was better buy, better creative, better marketing. So I think that's just -- that's an idiosyncratic thing that I'm not going to get too torqued up about.

然後，隨著過多的政治運動，我認為它只是稍微削弱了它的正面影響。我不想失去注意力，布萊恩。這仍然是積極的，這仍然是一個非常理性的良好商業決策。它只是不像我們去年所做的行銷那麼積極，儘管我客觀地認為這是更好的購買、更好的創意、更好的行銷。所以我認為這只是——這是一件特殊的事情，我不會對此感到太緊張。

Okay. Yes, makes sense. Michelle, I don't know if as we go into next year, if you have sort of a view yet on cost inflation, if it's sort of status quo and where you think what you think margins will look like directionally next year?

好的。是的，有道理。米歇爾，我不知道當我們進入明年時，您對成本通膨是否有某種看法，這是否是現狀，以及您認為明年的利潤率會是什麼樣子？

Yes, Brian. I'll give a little bit more color in January when we're at ICR and what our guides look like for 2025. We're obviously putting together plans as we speak. But on the surface, I don't expect it to be significantly inflationary compared to this year as we go into 2025. I think we'll see on the food side, we'll still see some pressures on the beef side.

是的，布萊恩。我將在 1 月份 ICR 會議上提供更多信息，以及 2025 年指南的內容。顯然，我們正在製定計劃。但從表面上看，隨著我們進入 2025 年，我預計與今年相比，通膨不會大幅上升。我認為我們會看到食物方面，我們仍然會看到牛肉方面的一些壓力。

And as you know, that's over 30% of our basket. And so I think that will still apply some pressure to us next year. I think labor will continue to be relatively moderate as we go into next year, but I'll give you some more color in January.

如您所知，這占我們購物籃的 30% 以上。所以我認為明年這仍然會給我們帶來一些壓力。我認為隨著明年的到來，勞動力將繼續相對溫和，但我會在一月份給你更多的資訊。

Thank you.

謝謝。

Chris O’Cull, Stifel.

克里斯·奧卡爾，斯蒂菲爾。

Hey, good morning, guys. This is Patrick on for Chris. Michael, I was hoping you could outline and hopefully prioritize how you're thinking about the levers you have to drive improvements in the transaction performance from here, just particularly as we get into next year?

嘿，早上好，夥計們。這是派崔克代替克里斯。邁克爾，我希望您能夠概述並希望優先考慮您如何考慮從這裡推動交易績效改進的槓桿，尤其是在我們進入明年的時候？

Yes. I think it's honestly fairly consistent with what I said just a few minutes ago. The number one thing is we need to be more efficient in throughput and so we've made some great progress on the drive-thru. There's more to go. We've made some progress inside. There's more to go. I love the kiosks.

是的。老實說，我認為這與我幾分鐘前所說的相當一致。第一件事是我們需要提高吞吐量，因此我們在得來速方面取得了一些重大進展。還有更多的事情要做。我們在內部取得了一些進展。還有更多的事情要做。我喜歡售貨亭。

I think that the kiosks are undeniably going to improve both mix and transaction. And I'm just so proud of our team for getting them all rolled out so quickly. So I think those fundamentally will drive transaction volume.

我認為自助終端無疑將改善組合和交易。我為我們的團隊如此迅速地推出它們感到非常自豪。所以我認為這些將從根本上推動交易量。

One of the things we've always got to be cautious about is our AUVs in Chicagoland are over $11 million, right? So just let's think about that for a second in a marketplace that has negative population growth. So that's the bulk of my comp base.

我們必須始終謹慎的一件事是我們在芝加哥的 AUV 價值超過 1100 萬美元，對嗎？因此，讓我們在人口負成長的市場中考慮這一點。這就是我大部分的補償基礎。

And trying to grow transactions on an $11 million box and a negative population growth is a very tall task. So flattish transactions in Chicagoland are great, and it's one of the reasons why we're so aggressively growing across the Sun Belt, markets like Texas, Florida, Arizona, where there's latent population growth and it's a little bit easier to capture some transaction growth.

試圖在 1100 萬美元的盒子上增加交易量並且在人口負增長的情況下是一項非常艱鉅的任務。因此，芝加哥地區的平淡交易很棒，這也是我們在陽光地帶如此積極增長的原因之一，例如德克薩斯州、佛羅裡達州、亞利桑那州等市場，這些市場存在潛在的人口增長，並且更容易捕捉到一些交易增長。

But the fundamentals of our business are really simple: be fast and efficient, make sure that you have you're doing a great job both in the drive-thru and dine in operationally, and then be very, very smart about deploying technology and capabilities to help. I think kiosks are going to help.

但我們業務的基本原理非常簡單：快速高效，確保在得來速和堂食運營方面都做得很好，然後非常非常聰明地部署技術和功能來幫忙。我認為資訊亭會有所幫助。

I think Sharon asked a while ago about a loyalty program. I'm excited to do something in that space early next year. I think that will help. And I also think that prudent, timely marketing. So, doing some creative marketing in Texas and especially as those restaurants start to hit the comp base, that will help.

我想莎倫不久前問過有關忠誠度計畫的問題。我很高興明年初能在這個領域做些事。我認為這會有幫助。而且我也認為謹慎、及時的行銷。因此，在德克薩斯州進行一些創意行銷，特別是當這些餐廳開始進入競爭基礎時，這將會有所幫助。

Great. That's helpful. And then I had a follow-up on the new unit question that was asked a few minutes ago. I mean, it's great that the company has been able to reduce the investment in new units, and I understand that you're shifting the square footage around to maximize the channels that are becoming incrementally more relevant or more used.

偉大的。這很有幫助。然後我對幾分鐘前提出的新單元問題進行了跟進。我的意思是，公司能夠減少對新單位的投資真是太好了，而且我知道你正在改變面積以最大化那些變得越來越相關或更多使用的管道。

But can you dig a bit deeper into how confident you are that the changes don't lead to lower sales volumes? And just how have you gotten comfortable with the idea that you still got the productive capacity you need in the units?

但您能否更深入地了解您對這些變化不會導致銷量下降的信心有多大？您對這些單位仍具有所需生產能力的想法感到滿意嗎？

It's a great question. And it's one of the things that we spent a lot of time working out before we started building this particular version of restaurant of the future. When we do this, we mock up a kitchen, we set a bunch of operators in there.

這是一個很好的問題。這是我們在開始建造這個特定版本的未來餐廳之前花費大量時間解決的問題之一。當我們這樣做時，我們模擬了一個廚房，並在那裡設置了一群操作員。

And for us, maybe it's audacious, but we like to think that our restaurants have the capacity of doing $200,000 a week, right? That gets you to a fully matured Portillo's that does $10 million AUVs. That, to us, is what we need to be able to do. $200,000 a week, what that means is you're doing a $40,000 Friday. It means you're doing $5,000 hours at 11, 12, and 1. $5,000 hour means this many beef sandwiches, this many fries, this many hot dogs, this many burgers.

對我們來說，也許這很大膽，但我們喜歡認為我們的餐廳有能力每週營業 20 萬美元，對嗎？這樣你就可以得到一個完全成熟的 Portillo's，它的 AUV 價值高達 1000 萬美元。對我們來說，這就是我們需要做的事情。每週 20 萬美元，這意味著你周五的收入是 4 萬美元。這意味著你在 11 點、12 點和 1 點工作了 5,000 美元。

We mock up the kitchen, we work it and we go back and forth, and our operators ultimately have a veto on whether or not the space they have, the equipment they have can allow them to produce at a level that is necessary for Portillo's.

我們模擬廚房，我們工作，我們來來回回，我們的操作員最終擁有否決權，決定他們擁有的空間、他們擁有的設備是否能讓他們達到波蒂略餐廳所需的水平。

And so what I'm really thrilled about is we've gone through that exercise. We had a healthy, constructive tension on what we need in the kitchen, and we landed at a place where the operators are happy, my CFO is happy and my marketing and strategy team who represent the voice of the customer, they're all happy. They say, yes, this kitchen is going to be beautiful.

所以我真正感到興奮的是我們已經完成了這個練習。我們對廚房的需求保持著健康、建設性的緊張態度，我們的操作員很高興，我的財務長也很高興，我的行銷和策略團隊代表了客戶的聲音，他們都很高興。他們說，是的，這個廚房會很漂亮。

Michelle tells me that the kitchen is going to make great economic sense for our investors. And my operators say, yes, we can run this kitchen and we can do the volumes that we need to do. So I'm thrilled to see how they perform because they're opening up in the next weeks and they're going to be they're in great locations in Texas. So it's going to be interesting to see what they do.

米歇爾告訴我，廚房將為我們的投資者帶來巨大的經濟意義。我的操作員說，是的，我們可以經營這個廚房，我們可以完成我們需要做的工作。所以我很高興看到他們的表​​現，因為他們將在接下來的幾週內開業，而且他們將位於德克薩斯州的絕佳地點。所以看看他們做什麼會很有趣。

Yes. I'll just jump in real quick, Patrick. So we put these numbers out there before. So we've, as you know, been targeting a 25% cash-on-cash return. So with the build cost for those restaurants down to 5.2% to 5.5%. The sales required to get that 25% cash on cash return is 5.9% to 6.3%. And so I just want to make sure everyone understands the economics around that and the sales that are required to get the return.

是的。我很快就會加入進來，帕特里克。所以我們之前就把這些數字放在那裡。如您所知，我們的目標是實現 25% 的現金回報率。因此，這些餐廳的建設成本降至 5.2% 至 5.5%。獲得 25% 現金回報所需的銷售額為 5.9% 至 6.3%。所以我只是想確保每個人都了解相關的經濟學以及獲得回報所需的銷售。

But to Michael's point, we believe that Portillo's is going to be able to achieve beyond that, right? And so that's why I was very involved with the project and just making sure that we were not limiting the volumes that we could do because we've even seen, and we put this stat out there.

但就邁克爾的觀點而言，我們相信波蒂略將能夠實現超越這一目標，對吧？這就是為什麼我非常參與這個項目，只是確保我們沒有限制我們可以做的數量，因為我們甚至已經看到了，我們把這個統計數據放在那裡。

In the Sun Belt markets, we're doing above $6 million AUV. So we don't want to limit ourselves. And as these restaurants continue to grow, which they are, to Michael's point, we believe that they can do Portillo's volumes.

在陽光地帶市場，我們的 AUV 銷售額超過 600 萬美元。所以我們不想限制自己。在麥可看來，隨著這些餐廳的不斷發展，我們相信他們可以達到波蒂略的銷售量。

Appreciate the color. Thank you, guys.

欣賞顏色。謝謝你們，夥計們。

Brian Mullan, Piper Sandler.

布萊恩·穆蘭，派珀·桑德勒。

Thank you. Can you just talk a little bit more about the entrance into Houston, how that's going so far? And then is there anything you learned from either the initial Dallas opening or even subsequent openings that you will be thinking about or that will inform you as you continue to scale in that Houston market?

謝謝。您能多談談進入休士頓的情況嗎？那麼，您是否從最初的達拉斯開業或隨後的開業中學到了什麼，您會考慮這些東西，或者當您繼續在休斯頓市場擴大規模時，這些東西會為您提供資訊？

Yes. I mean, look, we're thrilled with the first restaurant in Houston in Richmond. As I said earlier, it's performing exceptionally well, frankly, above our expectations. But it's the first in market. We know that it's going to do that. We know that it's got the first Portillo's in market tends to have an extraordinarily large catchment. People come from everywhere.

是的。我的意思是，看，我們對休士頓里士滿的第一家餐廳感到很興奮。正如我之前所說，坦白說，它的表現非常好，超出了我們的預期。但這是市場上的第一個。我們知道它會做到這一點。我們知道，市面上第一批波蒂略葡萄酒的銷售量往往非常大。人們來自四面八方。

One of the things I think that we have improved in how we're doing things is we're opening two more in Houston in the next month and a half and that's actually important because I don't want to kill this restaurant with extraordinary volumes. I'd like to spread it out a little bit and have momentum as we build in Houston so that all the restaurants are growing sort of organically and have less of a spike, come down, the others come in. And so we're doing that.

我認為我們在做事方式上有所改進的一件事是，我們將在接下來的一個半月內在休斯頓再開設兩家餐廳，這實際上很重要，因為我不想因為數量過多而扼殺這家餐廳。我想將其分散一點，並在我們在休斯頓建設時保持動力，以便所有餐廳都能有機增長，並且不會出現高峰，下降，其他餐廳進來。所以我們正在這樣做。

I think have gotten really smart and sharp in our field marketing tactics and how we generate awareness in local markets. We're being very thoughtful about generating sort of nonprofit activities, local activities, really becoming a part of the fabric of the community. And so that's really -- those are the keys to success.

我認為我們的現場行銷策略以及如何在當地市場提高知名度已經變得非常聰明和敏銳。我們正在非常認真地考慮一些非營利活動、本地活動，真正成為社區結構的一部分。所以這確實是成功的關鍵。

Richmond is great. It's not going to be our best Houston location. There's we're opening in Katy and other places in Houston shortly, which will actually, I think, outperform Richmond. It's just better real estate, better location, better densities, better population. So we're really excited by Houston.

里士滿很棒。這不會是我們在休士頓的最佳地點。我們很快就會在凱蒂和休士頓的其他地方開業，我認為這實際上會超過里士滿。這只是更好的房地產、更好的位置、更好的密度、更好的人口。所以我們對休斯頓感到非常興奮。

And I guess it's worth saying that Houston is also a little bit of a menu test right now. We are looking at a slightly rationalized menu to take a lot of complexity out of our kitchens and see how that performs in Houston. And thus far, it's we're learning a lot, but it's working really, really well.

我想值得一提的是，休士頓現在也正在接受一些菜單測試。我們正在考慮一個稍微合理化的菜單，以消除廚房中的大量複雜性，並看看它在休士頓的表現如何。到目前為止，我們學到了很多東西，而且效果非常非常好。

Thank you.

謝謝。

Sara Senatore, Bank of America.

薩拉·參議員，美國銀行。

Thank you. Just a couple of follow ups. The first is, I guess, to clarify, Michael, your comments about Houston and the idea of trying to make the I think what you're saying sort of the curve for the new restaurant in Richmond look a little bit less steep or perhaps different from the Colony.

謝謝。只是幾個後續行動。我想，首先是為了澄清，邁克爾，你對休斯頓的評論，以及試圖讓我認為你所說的里士滿新餐廳的曲線看起來不那麼陡峭或可能有所不同的想法來自殖民地。

So I guess that's one question, which is are you broadly seeing similar curves over the first couple of years of the stores outside of Chicagoland? And in particular with Richmond is the expectation that maybe you don't get quite as much. That's maybe you've sort of flattened the curve a little bit or that's the goal just because I know in the past sometimes it's been hard for us to model that.

所以我想這是一個問題，即您在芝加哥以外的商店的頭幾年中是否普遍看到類似的曲線？尤其是在里士滿，人們期望你可能不會得到那麼多。也許你已經使曲線變平了一點，或者這就是目標，因為我知道過去有時我們很難對此進行建模。

And then, you mentioned next year restaurant count growing by 12% to 15%. I guess, it's been a little bit of a struggle to get unit growth to accelerate last couple of years and I think that this year maybe instead of 10 plus you have 10. Could you just talk a little bit about what, if anything, has changed in development pipeline that sort of allows that now? And then I have one last question for Michelle.

然後，您提到明年餐廳數量將增加 12% 至 15%。我想，過去幾年，要讓單位成長加速有點困難，我認為今年可能不是 10+，而是 10。您能否簡單談談現在允許這樣做的開發流程中發生了什麼（如果有的話）？然後我有最後一個問題要問米歇爾。

Yes. Good questions. On the second part of your question, what gives me great confidence about next year in particular is that I've got a deal pipeline and leases signed that are make me very, very comfortable with the numbers that we've quoted.

是的。好問題。關於你問題的第二部分，讓我對明年充滿信心的是，我已經簽署了交易管道和租約，這讓我對我們引用的數字非常非常滿意。

And when I'm now visiting sites and looking at restaurants, I'm looking at restaurants for the back half of 2026 and 2027. And the development team that we have is farther ahead than we've ever seen in terms of the pipeline. So I feel great about that. I feel great about where we are from a people and HR standpoint.

當我現在訪問網站並尋找餐廳時，我正在尋找 2026 年下半年和 2027 年的餐廳。我們的開發團隊在管道方面比我們所見過的更領先。所以我對此感覺很好。從人員和人力資源的角度來看，我對我們的現狀感到滿意。

For us, sort of the most important derisking of a new restaurant is to have an experienced Portillo's GM there. And our learning and development team have done heroic work in having an amazing pipeline of talent that we can use to populate these restaurants.

對我們來說，開一家新餐廳最重要的風險就是要有一位經驗豐富的 Portillo 總經理。我們的學習和發展團隊做出了英勇的工作，擁有令人驚嘆的人才管道，我們可以利用這些人才來填充這些餐廳。

So I'm excited about 2025. And I think that's a fair call out, Sarah, that we are eager to accelerate the growth curve. We are not eager to do it poorly. So we want to make sure we've got great locations and great people, and we're accelerating with the right box size and the box economics. And I think we're awfully close to being able to do that.

所以我對 2025 年感到興奮。莎拉，我認為這是一個公平的呼籲，我們渴望加速成長曲線。我們並不急於做得不好。因此，我們希望確保我們擁有優越的地理位置和優秀的人才，並且我們正在透過合適的盒子尺寸和盒子經濟來加速發展。我認為我們非常接近能夠做到這一點。

So on your first question about the curves, yes, absolutely like we don't want the crazy spike coming down stabilizing. I think it was funny having to like apologize for the Colony doing $10 million , $12 million because it started off at such a ludicrously high rate and so and it caused all kinds of wonkiness in how people looked at our new restaurant revenues.

因此，關於你關於曲線的第一個問題，是的，絕對像我們不希望瘋狂的峰值下降穩定下來。我認為不得不為殖民地的 1000 萬美元、1200 萬美元道歉是很有趣的，因為它一開始的利率如此之高，因此，這導致了人們對我們新餐廳收入的各種懷疑。

And so I think that we would like to mitigate the volatility of that curve as much as possible, knowing full well that a first in market to a major market is still going to have a crazy opening. So but we do like to mitigate. And I know Michelle wanted to say something about that.

因此，我認為我們希望盡可能減輕該曲線的波動性，因為我們充分了解，進入主要市場的首次市場仍將有一個瘋狂的開盤。所以，但我們確實喜歡緩解。我知道米歇爾想對此說些什麼。

Yes. I think, Sara, we're learning curves ourselves, right? And so as the pipeline continues to ramp up specifically, right, when you look at the number of restaurants that we opened in 2022 than in 2023, '23 obviously was a significant ramp up.

是的。我想，薩拉，我們自己正在學習曲線，對吧？因此，隨著管道繼續增加，具體來說，當你看到我們在 2022 年開設的餐廳數量與 2023 年相比，'23 顯然是一個顯著的增加。

We opened 3 restaurants in 2022 and then 12 last year and then obviously 10 this year. So we're learning these curves as well. And to Michael's point, there's different curves, whether it's a Chicagoland restaurant, as he mentioned, the first in market is going to have a steeper honeymoon.

我們在 2022 年開了 3 家餐廳，去年又開了 12 家，今年顯然又開了 10 家。所以我們也在學習這些曲線。對於邁克爾來說，有不同的曲線，無論是芝加哥餐廳，正如他所提到的，市場上的第一家餐廳將會有一個更陡峭的蜜月。

Then there's restaurants that we've been very transparent about that are built ahead of growth that have a very different curve, right? As the markets grow around them, it doesn't really have a curve. And then there's fill-in restaurants.

還有一些我們一直非常透明的餐廳，它們是在成長之前建立的，它們的曲線非常不同，對吧？當市場圍繞著它們成長時，它並沒有真正的曲線。然後還有補充餐廳。

As Michael said, Houston as an example, Richmond is restaurants. As Michael said, Houston as an example, Richmond is first in markets, going to have a steeper curve. But then as we add these restaurants “that fill-in, in that market”, those have a different curve to them.

正如麥可所說，以休斯頓為例，里士滿是一家餐廳。正如麥可所說，以休士頓為例，里士滿在市場上處於領先地位，將會有更陡峭的曲線。但是，當我們添加這些餐廳（填補該市場的空缺）時，它們的曲線就不同了。

And so really, we're just starting to learn. We have six restaurants in Dallas. It's really the first true market where we're seeing how some of these curves are shaping up as well as in Arizona as we see some fill in restaurants there.

事實上，我們才剛開始學習。我們在達拉斯有六家餐廳。這確實是第一個真正的市場，我們看到其中一些曲線是如何形成的，就像在亞利桑那州一樣，我們看到那裡的餐廳已經滿了。

So we're going to continue to be transparent. We provided some information on how we believe those curves are starting to look, but we'll continue to provide that as we learn more about how these curves are looking.

因此，我們將繼續保持透明。我們提供了一些關於我們認為這些曲線開始看起來如何的信息，但當我們更多地了解這些曲線的外觀時，我們將繼續提供這些資訊。

Understood. Thank you. And then just a quick clarification on that. I know you mentioned you're not giving guidance, but I guess if the assumption is like next year inflationary trends look similar to this year, I mean, would it be fair to assume that the competitive environment in terms of pricing also looks similar?

明白了。謝謝。然後對此進行快速澄清。我知道你提到你沒有提供指導，但我想如果假設明年的通膨趨勢看起來與今年相似，我的意思是，假設定價方面的競爭環境也看起來相似是否公平？

I mean, I think historically lower inflation has translated into lower pricing or even discounting. And so I guess I'm just trying to think about as you talk about not being a sort of promo driven brand.

我的意思是，我認為歷史上較低的通膨已經轉化為較低的定價甚至折扣。所以我想我只是想想想你所說的不是一種促銷驅動的品牌。

Yes. I think as we think about next year, Sara, we're always going to -- whatever the inflationary cost, which again I don't think are going to be significant, but there'll be inflation next year. We're going to use the pricing lever to offset the inflationary cost pressures. I think we continue to believe that we provide good value. We provided the data points as we benchmark our most ordered bundle against competitors.

是的。我認為，當我們考慮明年時，薩拉，我們總是會——無論通貨膨脹成本如何，我認為這不會很大，但明年將會出現通貨膨脹。我們將利用定價槓桿來抵銷通膨成本壓力。我認為我們仍然相信我們提供良好的價值。我們在將我們訂購最多的捆綁包與競爭對手進行比較時提供了數據點。

So I think as we sit here today, we do think that there is some pricing power that we have. We have a, as you know, a pretty expansive menu where it's not like you have to take price on everything. So you as a consumer may not feel it each and every time we take price, but we're going to use that lever next year, but it's going to be more moderate, right?

所以我認為，當我們今天坐在這裡時，我們確實認為我們擁有一定的定價能力。如您所知，我們有一個相當廣泛的菜單，您不必為所有東西定價。因此，作為消費者，您可能不會每次我們定價時都感受到這一點，但明年我們將使用該槓桿，但它會更加溫和，對吧？

We saw pricing up 8.5% in 2023. We're going to see it up just over 4%-ish as we end this year. So I think depending on the inflation environment next year, that's where you'll see the pricing come into play for us. But I think you'll see us pull that lever as we have those pressures.

我們看到 2023 年價格上漲了 8.5%。到今年年底，我們將看到它的漲幅略高於 4%。因此，我認為，根據明年的通膨環境，您將看到定價對我們發揮作用。但我想你會看到我們在面臨這些壓力時拉動槓桿。

Thank you very much.

非常感謝。

Gregory Francfort, Guggenheim Partners.

葛瑞格里‧法蘭克福特，古根漢合夥人。

Hey, thanks for the question. I just had two. The first maybe is for Michael. You've been shrinking kind of the box size for a few iterations. What do you think is the ultimate maybe path to where that could be three, four, five years from now? Like how big would the menu look in that scenario?

嘿，謝謝你的提問。我剛吃了兩個。第一個可能是給麥可的。您已經在幾次迭代中縮小了盒子的尺寸。您認為三年、四年、五年後實現這一目標的最終路徑是什麼？在這種情況下，菜單看起來有多大？

I don't want to speculate on that one, Greg. I think that there's a I'm more concerned honestly about generating excellent cash on cash returns for our investors. So it's a combination of getting the right box that can still provide a great experience, that can generate the revenues and the margins that we want at a capital investment that makes sense for our investors. So that's kind of our goal. It's kind of -- it's calculus, it's not straight math.

我不想對此進行猜測，格雷格。我認為，老實說，我更關心的是為我們的投資者帶來豐厚的現金回報。因此，獲得合適的盒子仍然可以提供良好的體驗，可以在對我們的投資者有意義的資本投資中產生我們想要的收入和利潤。這就是我們的目標。這是一種微積分，不是直接的數學。

Yes. I didn't do well in calculus, so that's because I think that's the.

是的。我微積分學得不好，所以那是因為我認為那就是。

I don't believe you

我不相信你

I had a question for Michelle. Just on the G&A, I think you've now at this point lowered the guidance by about $7 million so far over the last few quarters. How what just -- where are the buckets that's come from? How much of that's just been incentive comp that reloads next year? I'm just trying to think about the bridge from three or four quarters ago to today.

我有一個問題想問米歇爾。就一般管理費用而言，我認為您在過去幾個季度迄今為止已將指導意見降低了約 700 萬美元。怎麼樣──這些水桶是從哪裡來的？其中有多少是明年重新加載的激勵補償？我只是想回想一下從三、四個季度前到今天的這座橋。

Yes, Greg. So primarily, it's the two buckets I mentioned on the call, which is your variable with your bonus compensation as well as your stock-based compensation. Those are the two levers. But I will say that we've also controlled our ongoing run rate for wages just as we continue to be disciplined on adding positions within this given year.

是的，格雷格。因此，主要是我在電話會議中提到的兩個部分，即您的獎金薪酬和基於股票的薪酬的變數。這是兩個槓桿。但我要說的是，我們也控制了持續的薪資運作率，就像我們在今年內繼續嚴格增加職位一樣。

And so that comes into play, but it's more heavily weighted on the bonus comp and equity-based comp. So yes, depending on how you do next year, that could pressure G&A as we go into next year. But I will say this and I said this on the call, we are going to remain disciplined in terms of how we invest G&A and putting G&A to work on strategic priorities is of the utmost important to us.

因此，這發揮了作用，但它更注重獎金補償和基於股權的補償。所以，是的，取決於你明年的表現，這可能會在我們進入明年時給一般管理費用帶來壓力。但我要說的是，我在電話會議上也說過，我們將在投資 G&A 方面保持紀律，並將 G&A 應用於策略優先事項對我們來說至關重要。

So as we put incremental G&A to work next year, it has to be on things that provide a good return on investment that we believe are going to move the brand forward. But yes, those lines, particularly on the variable based comp or bonus comp line, could provide some pressure into next year because that line item is based on the company's performance in a given year and that's where it can vary in each year.

因此，當我們明年投入增量一般管理費用時，必須專注於能夠提供良好投資回報的事情，我們相信這將推動品牌向前發展。但是，是的，這些項目，特別是基於可變的補償或獎金補償項目，可能會給明年帶來一些壓力，因為該項目是基於公司在給定年份的業績，並且每年都會有所不同。

So -- but I'll give more guides in January on where we think G&A is going to come in for 2025.

所以，但我將在 1 月提供更多關於我們認為 2025 年 G&A 將會出現的情況的指南。

Got it. If you comp well, you reload the G&A, but that's something we should want. So thank you for the perspective. I appreciate it.

知道了。如果你的表現很好，你可以重新加載一般行政費用，但這是我們應該想要的。所以謝謝你的觀點。我很感激。

Yes, no problem.

是的，沒問題。

Thank you. This concludes today's teleconference. We thank you for your participation. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路。