Guggenheim analyst Gregory Francfort downgraded Portillo's, Inc (NASDAQ: PTLO) from Buy to Neutral.

The analyst comments: “After opening eight new stores planned for 2026, Portillo’s will slow 2027 development to 4-6 additions as it works to get out of existing leases, pivot its attention to the current portfolio, and search for a new growth design that generates the ROI to support accelerated development. This will have to be tested and the low absolute number of openings each year means that we will likely not have clarity on that for some time. The company did point out that two openings later this year will include re-formulated square kitchen designs rather than linear that will demonstrate whether management can operate in a new (potentially more capital-efficient) model. We have thought for some time that Portillo’s needs to make a bigger jump to a 3,000-4,500 square foot model at some point and that the biggest issue for the stock has been repeatedly taking a scalpel to the footprint and box economics rather than a bigger format adjustment. Margins are strong, and the company should be able to lean more aggressively into lease financing (particularly if it can find a footprint that would be more interchangeable with other QSR brands) to drive down upfront capital outlays. But all of this will take some time.”

For an analyst ratings summary and ratings history on Portillo's, Inc click here. For more ratings news on Portillo's, Inc click here.

Shares of Portillo's, Inc closed at $4.49 yesterday.