AAP Podcast #38 – A Conversation with Portillo’s (PTLO) CEO Michael Osanloo

On this episode of the AAP Podcast, lead portfolio manager Chris Versace welcomes Michael Osanloo, the CEO of fast-casual Chicago street food company Portillo’s (PTLO). While not yet a household name, consensus revenue forecasts have the company serving up revenue of $683 million this year, up from $587 million in 2022 and $479 million in 2022 as it continues to expand its footprint and win over diners. Osanloo attributes the success of Portillo’s to its craveable yet affordable menu that has an average check per consumer of $10. As he shares, the menu is not only recession-proof it is also veto-proof with items that appeal to vegetarians, vegans, and flexitarians as well as meat eaters.

The company recently enacted a 3% price increase, which layered on top of the 3.5% increase taken last year and paired with productivity improvements is shaping up to drive margin improvement as food costs improve. Despite those price increases, Osanloo explains the company is intent on continuing to offer family-friendly prices, something Chris sees as a draw for consumers dealing with rising food prices and other inflationary pressures. Like other restaurants, Portillo’s is contending with higher wages, however, Osanloo explains how the management team invests in and leverages its employees, using them to carry the company culture to new locations.