Portillo's plans to close several underperforming restaurants following a review of every location, with most closures expected before the end of the year.
The Oak Brook-based chain said all restaurants targeted for closure are outside the Chicago area. It has not identified individual locations or announced an exact number.
Portillo's described the planned closures as a "mid-to-high single-digit number" in its Nov. 5 earnings announcement. The company evaluated each restaurant's sales, profit margins and projected performance before making the decision.
"Lastly, we evaluated every restaurant in the system and made the decision to close a select group of underperforming locations outside of Chicagoland," CEO Brett Patterson said in the announcement.
The closures are part of a broader effort to improve profitability and take a more selective approach to expansion.
Portillo's board approved the plan Nov. 4, according to a filing with the Securities and Exchange Commission. The company expects costs associated with leases, employee separation and asset write-downs, but said it could not yet estimate the total.
Sales Rise, Transactions Decline
The closure announcement came as Portillo's reported higher quarterly revenue and profit. Revenue rose 7 percent to $194.1 million during the third quarter, while net income increased to $4.8 million from about $800,000 a year earlier.
Sales at established restaurants increased 1.4 percent. Higher menu prices helped drive that growth, while the number of transactions declined 0.7 percent, according to the company.
Portillo's also raised its full-year outlook for adjusted earnings.
More Openings Still Planned
The chain is continuing to add restaurants even as it prepares to close others.
Portillo's opened seven restaurants during the first three quarters of 2026, all in Texas, bringing its restaurant count to 109. Those openings included a Dallas-Fort Worth International Airport restaurant operated through a partnership. One additional Chicago restaurant is planned for the fourth quarter.
The company's broader strategy includes stricter site selection, a smaller restaurant prototype, updated employee training and investments intended to improve order accuracy and speed.
Portillo's also said it has exited future real estate agreements that did not meet its expectations for financial returns.
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