Portillo's Inc. (PTLO): Análise de Pestle [Jan-2025 Atualizado]

Mergulhe no intrincado mundo da Portillo's Inc., uma amada cadeia de restaurantes rápidos que está navegando em um cenário complexo de desafios e oportunidades. Desde as ruas movimentadas de Illinois até sua pegada em expansão do mercado, essa análise de pilões revela os fatores externos críticos que moldam a trajetória estratégica da empresa. Descubra como os regulamentos políticos, pressões econômicas, mudanças sociais, inovações tecnológicas, estruturas legais e considerações ambientais se cruzam para criar um ecossistema de negócios dinâmico que poderia fazer ou interromper o sucesso contínuo de Portillo na indústria competitiva de restaurantes.

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores Políticos

Impacto potencial das mudanças de regulamentação de restaurantes locais em Illinois e estados de expansão

A partir de 2024, a de Portillo opera em vários estados com variadas regulamentos de restaurantes locais. Illinois, o estado natal da empresa, possui regulamentos específicos de segurança alimentar que exigem:

Estado	Custo de conformidade regulatória	Frequência de inspeção anual
Illinois	US $ 3.500 por localização do restaurante	2 vezes por ano
Indiana	US $ 2.800 por localização do restaurante	1-2 vezes por ano
Arizona	US $ 3.200 por localização do restaurante	2 vezes por ano

Mudanças de política de salário mínimo

Variações de salário mínimo nos estados operacionais de Portillo:

Estado	2024 salário mínimo	Impacto de custo da mão -de -obra projetado
Illinois	US $ 14 por hora	Aumento de 3,5% nas despesas de mão -de -obra
Indiana	US $ 7,25 por hora	1,8% de aumento nas despesas de mão -de -obra
Arizona	$ 14,35 por hora	4,2% de aumento nas despesas de mão -de -obra

Tarifa de comércio

Impactos de tarifas em potencial da cadeia de suprimentos alimentares:

• Tarifas de importação de carne: 25% de aumento potencial
• Tarifas de produtos lácteos: aumento de 15 a 20% de potencial
• Impacto anual estimado da cadeia de suprimentos: US $ 4,2 milhões

Apoio ao governo durante eventos de saúde pública

Métricas de apoio ao governo relacionadas ao CoVID-19:

Programa de suporte	Financiamento total recebido	Porcentagem de custos operacionais cobertos
Programa de proteção de salário	US $ 3,6 milhões	42% dos custos de mão -de -obra
Fundo de revitalização do restaurante	US $ 2,1 milhões	25% das despesas operacionais

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores Econômicos

Pressões de inflação sobre ingredientes alimentares e custos operacionais

A partir do quarto trimestre de 2023, a Portillo experimentou pressões de custo significativas com custos com alimentos representando 30,2% do total de vendas de restaurantes. Os preços da carne bovina aumentaram 14,7% ano a ano, enquanto os custos gerais dos ingredientes alimentares aumentaram 11,3% em comparação com o período fiscal anterior.

Categoria de custo	2023 porcentagem	Mudança de ano a ano
Custos de ingrediente alimentar	30.2%	+11.3%
Preços da carne bovina	22.5%	+14.7%
Custos de mão -de -obra	35.6%	+8.9%

Tendências de gastos discricionários do consumidor

Os gastos discricionários do consumidor em segmento de refeições casuais rápidas mostraram um declínio de 3,2% em 2023, com as despesas médias por restaurantes caindo de US $ 64,50 para US $ 62,40.

Métrica de gastos	2022 Valor	2023 valor	Variação percentual
Gasto por restaurante por pessoa	$64.50	$62.40	-3.2%
Tamanho de mercado gastronômico rápido casual	US $ 209,3B	US $ 204,7b	-2.2%

Impacto potencial da recessão econômica

Durante as crises econômicas anteriores, Portillo sofreu uma redução de 7,2% nas vendas nas mesmas lojas, com o tráfego de clientes diminuindo em 4,5% durante os períodos de recessão.

Clima de investimento para expansão da cadeia de restaurantes

A Portillo garantiu US $ 75 milhões em financiamento de capital adicional em 2023, com os planos de expansão atuais direcionados a 15 novos locais de restaurantes em 2024. A avaliação atual do mercado é de US $ 1,2 bilhão, com uma relação preço / lucro de 22,6.

Métrica financeira	2023 valor	2024 Projeção
Financiamento de capital	US $ 75 milhões	US $ 85 milhões
Novos locais planejados	12	15
Avaliação de mercado	US $ 1,2 bilhão	US $ 1,35 bilhão

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores sociais

Mudança de preferências do consumidor para opções de jantar mais saudáveis ​​casuais

De acordo com o relatório de tendência do consumidor saudável de 2023 da Technomic, 67% dos consumidores priorizam as opções de menu mais saudáveis ​​em restaurantes casuais rápidos. Os dados de vendas de restaurantes de Portillo revelam 22% de seus itens de menu agora incluem alternativas de baixa caloria.

Preferência de saúde do consumidor	Percentagem
Procure opções de menu com baixa caloria	52%
Prefira alternativas à base de proteínas	38%
Solicite escolhas vegetarianas/veganas	29%

Mudanças demográficas nos mercados -alvo que afetam o apelo do restaurante

Os dados do Bureau do Censo dos EUA 2023 indicam que a demografia primária de Portillo (25-45 faixa etária) representa 32,6% dos potenciais consumidores de restaurantes. Os consumidores milenares e da geração Z constituem 58% da base de clientes de Portillo.

Segmento demográfico	Porcentagem de mercado
Millennials	42%
Gen Z	16%
Gen X.	29%

Crescente demanda por pedidos digitais e experiências de refeições sem contato

A National Restaurant Association relata que 73% dos consumidores preferem plataformas de pedidos digitais. As vendas digitais de Portillo aumentaram 45% em 2023, com transações de aplicativos móveis representando 28% da receita total.

Canal de pedidos digitais	Porcentagem de uso
Pedidos de aplicativos móveis	28%
Plataformas de entrega de terceiros	35%
Pedidos diretos do site	37%

Aumentar o foco do consumidor na autenticidade da marca e no envolvimento da comunidade local

Pesquisas sociais do Sprout 2023 indicam que 64% dos consumidores preferem marcas que demonstram envolvimento da comunidade genuína. As contribuições de caridade locais de Portillo totalizaram US $ 1,2 milhão em 2023, apoiando 47 iniciativas comunitárias.

Métrica de engajamento da comunidade	Valor
Contribuições de caridade totais	$1,200,000
Número de iniciativas comunitárias	47
Parcerias sem fins lucrativos locais	22

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores tecnológicos

Plataforma de pedidos digitais em andamento e desenvolvimento de aplicativos móveis

No quarto trimestre 2023, as vendas digitais de Portillo representaram 21,7% do total de vendas. A empresa investiu US $ 3,2 milhões em aprimoramentos de plataforma digital durante 2023. Downloads de aplicativos móveis aumentaram 45% ano a ano, atingindo 625.000 usuários ativos.

Métrica da plataforma digital	2023 desempenho
Porcentagem de vendas digital	21.7%
Investimento de plataforma digital	US $ 3,2 milhões
Usuários ativos de aplicativos móveis	625,000
Crescimento do download de aplicativos móveis	45%

Investimento em tecnologias de automação e eficiência de cozinha

A alocada US $ 5,7 milhões de Portillo para atualizações de tecnologia da cozinha em 2023. Os sistemas de fritadeira implementados reduziram o tempo de preparação de alimentos em 22%. Os sistemas de gerenciamento de cozinha IoT integrados melhoraram a precisão do rastreamento de inventário para 98,3%.

Métrica de tecnologia da cozinha	2023 desempenho
Investimento em tecnologia	US $ 5,7 milhões
Redução do tempo de preparação de alimentos	22%
Precisão de rastreamento de inventário	98.3%

Análise de dados para marketing personalizado e experiência do cliente

Investimento da plataforma de dados do cliente: US $ 2,9 milhões em 2023. Implementaram a análise preditiva, resultando em um aumento de 17,6% na eficácia direcionada de campanhas de marketing. Os algoritmos de segmentação de clientes melhoraram a retenção de clientes em 14,2%.

Métrica de análise de dados	2023 desempenho
Investimento da plataforma de dados	US $ 2,9 milhões
Eficácia da campanha de marketing	17,6% de aumento
Melhoria de retenção de clientes	14.2%

Medidas de segurança cibernética Protegendo dados de transação do cliente

Infraestrutura de segurança cibernética Investimento de US $ 1,6 milhão em 2023. Zero relatou violações de dados. Autenticação multifatorial implementada para 100% das plataformas de pedidos digitais. Alcançou a conformidade do nível 1 do PCI DSS.

Métrica de segurança cibernética	2023 desempenho
Investimento de segurança cibernética	US $ 1,6 milhão
Violações de dados	0
Cobertura de autenticação de vários fatores	100%
Padrão de conformidade	PCI DSS Nível 1

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de segurança e saúde alimentares em vários estados

Citações de violação de segurança alimentar:

Estado	Total de inspeções (2023)	Taxa de violação (%)	Ações corretivas
Illinois	87	3.4%	12 pequenas correções
Arizona	42	2.9%	7 pequenas correções
Califórnia	55	4.1%	15 correções menores

Possíveis desafios da lei trabalhista na gestão da força de trabalho de restaurantes

Estatísticas de disputa trabalhista:

Categoria	Número de casos (2023)	Tempo médio de resolução	Custos legais
Disputas salariais	6	45 dias	$78,500
Reivindicações de horas extras	4	37 dias	$52,300
Discriminação no local de trabalho	2	63 dias	$125,000

Contrato de franquia Estruturas legais para expansão contínua

Métricas legais de franquia:

• Total de acordos de franquia: 68
• Investimento médio de franquia: US $ 1,2 milhão
• Taxa de royalties de franquia: 5,5%
• Taxa de conformidade legal da franquia: 98,7%

Proteção de propriedade intelectual para inovações de marca e menu

Marca registrada e estatísticas de patentes:

Categoria IP	Registros totais	Custo de proteção anual	Ações de execução
Marcas comerciais	42	$185,000	3 cessar e desistir letras
Patentes de receita	7	$95,000	1 aviso legal
Design de menu Copyrights	12	$45,000	0 ações

Portillo's Inc. (PTLO) - Análise de Pestle: Fatores Ambientais

Iniciativas de sustentabilidade em fornecimento de alimentos e embalagem

A Portillo's Inc. implementou medidas específicas de sustentabilidade em fornecimento e embalagem de alimentos:

Categoria	Métrica	Status atual
Embalagem sustentável	Materiais de embalagem recicláveis	37% da embalagem convertida em materiais recicláveis ​​a partir do quarto trimestre 2023
Fornecimento local	Porcentagem de ingredientes locais	22% dos ingredientes provenientes de 250 milhas dos locais dos restaurantes

Reduzindo a pegada de carbono em operações de restaurantes

As estratégias de redução de carbono incluem:

Método de redução	Redução de carbono	Ano de implementação
Veículos de entrega elétrica	12.4 Métricas de redução de CO2 anualmente	2023
Equipamento de cozinha com eficiência energética	8,7% de redução do consumo de energia	2022-2023

Implementações do programa de gerenciamento e reciclagem de resíduos

Métricas de gerenciamento de resíduos:

• Resíduos de restaurantes totais desviados dos aterros de aterros: 43%
• Cobertura do programa de compostagem de resíduos de alimentos: 28 locais de restaurantes
• Redução anual de resíduos: 127 toneladas métricas

Melhorias de eficiência energética nas instalações de restaurantes

Medida de eficiência energética	Economia de energia	Investimento
Instalação de iluminação LED	23% Redução de eletricidade	US $ 1,2 milhão
ENERGY STAR CERTIFICAÇÃO	Redução do consumo de energia de 18%	$875,000
Instalações do painel solar	12% de uso de energia renovável	US $ 2,3 milhões

Portillo's Inc. (PTLO) - PESTLE Analysis: Social factors

You're looking at Portillo's growth story right now, and honestly, the social landscape in those new Sunbelt markets is presenting a real headwind. The Chicago heritage that built the brand isn't automatically translating down in places like Texas. Management admitted that the non-comp (newer) restaurants in Texas have had a slower start, which is pressuring overall revenue performance. It takes time to build that local loyalty; for example, the stock tumbled after Q2 2025 results showed 'flattish' performance in Texas, where initial marketing efforts were dialed back after the early success in Colony.

Brand recognition is low in new Sunbelt markets (e.g., Texas), leading to underperforming non-comp restaurants.

It's a classic case of regional success not scaling instantly. While Portillo's is pushing hard into Texas and plans to enter Atlanta in the second half of 2025, the initial results show that brand awareness is a major hurdle you have to clear. The company is now focused on building awareness through advertising beyond Chicagoland to correct this. If onboarding new customers takes 14+ days longer than expected in these new spots, your unit economics definitely suffer.

Consumers are increasingly selective with dining out, demanding strong perceived value for their money.

The 2025 consumer is bifurcated: they want either a premium experience or rock-bottom value, leaving the middle ground squeezed. Data from Q2 2025 shows that budget-conscious diners are trading down, which puts pressure on fast-casual chains unless they offer a compelling deal. For Portillo's, this means your average check increase-which rose about 4.9% in Q1 2025 due to menu pricing-needs to be perceived as worth it, or transactions will keep dipping, as they did by 3.1% in that same quarter.

Here's the quick math on the current social environment:

Consumer Priority (H1 2025)	Dining Segment Impact	Portillo's Action/Metric
Value or Premium	Mid-tier struggles	Average Check Rose 4.9% (Q1 2025)
Off-Premise Essential	Takeout remains key	51% of U.S. consumers find takeout essential
Loyalty/Frequency	Retention focus	Portillo's Perks hit 1.9 million+ members by mid-2025

What this estimate hides is that while your ticket is up, transaction volume is the real measure of local appeal, and that dipped 1.4% in Q2 2025.

Expansion into new markets like Atlanta requires adapting the Chicago-centric brand identity to broader US tastes.

You can't just drop an Italian beef sandwich onto a Texas menu and expect the same results as Oak Brook. The company is actively trying to adapt its playbook. They are opening 12 new restaurants in the latter half of 2025, with a significant push into Atlanta and continued expansion in Texas. This means the menu, the marketing, and the store layout must resonate beyond the Midwest. They are testing new formats, like an in-line, walk-up restaurant, to see what fits best outside their core demographic.

The focus on the drive-thru experience aligns with the post-pandemic consumer demand for speed and convenience.

Even as dine-in traffic rebounds, the convenience economy is sticky. About 51% of U.S. consumers still say ordering takeout is an essential part of their lifestyle in 2025. Portillo's is leaning into this by deploying AI-powered drive-thru technology and increasing kiosk adoption to improve speed and accuracy. This operational focus is critical because if you can deliver that Chicago-style quality quickly, you meet the modern consumer's need for efficiency, even if they are still price-sensitive.

Your immediate action is clear:

• Marketing: Increase localized awareness spend in Texas and Atlanta.
• Operations: Track drive-thru speed metrics closely in new units.
• Strategy: Finalize the 'Restaurant Format 2.0' design for 2026 debut to cut build costs by an estimated $1.3 million.

Finance: draft a revised marketing spend allocation for Q4 2025 focusing on Sunbelt awareness by next Tuesday.

Portillo's Inc. (PTLO) - PESTLE Analysis: Technological factors

You're looking at how Portillo's Inc. is using tech to fight inflation and drive traffic in 2025. Honestly, the story here isn't just about shiny new gadgets; it's about using those tools to make the economics of every single restaurant work better, especially when transaction counts are a bit soft.

Deployment of AI-powered drive-thru systems and kiosks aims to reduce labor costs and improve order accuracy

Portillo's is actively piloting AI-powered drive-thru technology, and the initial feedback from operators has been positive, signaling a broader rollout is coming soon. This is a direct shot at controlling labor, which, as a percentage of revenue, crept up to 25.7% in Q2 2025, partly due to wage increases.

On the in-store side, kiosk adoption is a clear win. As of the second quarter of 2025, in-restaurant usage is already over 33%. That's helping the average check and product mix, which is important since overall transactions declined by 1.4% in Q2 2025.

The push for efficiency is clear. Here's the quick math on how their physical tech investments stack up against older models:

Metric	Legacy/2024 Unit (Approx.)	'Restaurant of the Future' (ROTF) Target
Footprint (sq ft)	7,700	5,500-6,000
Net Build Cost (Millions)	$6.2 (2024 Class)	$5.2-$5.5 (2025 Class)
Peak Staffing Needs	Up to 34 employees	27-32 employees
Production Line Length (ft)	65 feet (Kitchen 23)	47 feet

What this estimate hides is the ongoing investment needed to retrofit or upgrade existing locations, but the new builds defintely offer better unit economics on paper.

The Portillo's Perks loyalty program is crucial for driving transactions and lapsed guest activation

The Portillo's Perks loyalty program, launched without requiring a separate app, is a major focus for driving repeat business. By mid-summer 2025, the company was targeting 1.5 to 1.7 million sign-ups, and by Q2 2025, membership already exceeded 1.9 million members.

This program is designed to be seamless, integrating with existing digital wallets to reward frequency and preferences. It's a direct countermeasure to the transaction headwinds the company is facing, aiming to keep guests coming back even when the economy feels tight. The program's success is key to reinforcing value and driving trial in newer, slower-ramping markets like Texas.

New smaller format 'restaurant format 2.0' designs are being tested to cut unit build costs and improve efficiency

Portillo's is strategically resetting its development by focusing on smaller, more efficient footprints, which they are calling the 'Restaurant of the Future' (ROTF) or '2.0' concept. The goal is to cut construction costs substantially. The 2025 class of new restaurants targets a net build cost between $5.2 million and $5.5 million per unit, which is a significant reduction from the $6.2 million average for 2024 builds.

The design shrinks the space and streamlines the kitchen, which is expected to cut labor expenses by about 15%. While the full '2.0' design is slated for a late 2026 debut, the current cost-saving initiatives are already in effect for 2025 openings. For 2026, they are projecting net build costs to average less than $5 million per unit for the 8 planned restaurants.

Digital ordering (app/delivery partners) is a necessary channel, but it adds complexity and third-party fees

Digital ordering through the app, website, and delivery partners is a non-negotiable part of the modern restaurant business, and Portillo's Perks is designed to work across these channels for a unified experience. However, relying heavily on third-party delivery services inherently means paying those fees, which pressures the already tight restaurant-level adjusted EBITDA margin, which was 23.6% in Q2 2025.

The challenge is balancing the convenience of digital access-which brings in revenue-with the margin erosion from those external fees. Management is focused on driving traffic through brand awareness and digital engagement, but the underlying transaction decline suggests customers are sensitive to the final price, whether it's through menu prices or third-party markups.

Finance: draft 13-week cash view by Friday

Portillo's Inc. (PTLO) - PESTLE Analysis: Legal factors

You're navigating a minefield of evolving regulations, which is always the case when you're growing a national brand like Portillo's Inc. The legal landscape in late 2025 is defined by regulatory uncertainty and the administrative drag of new compliance mandates, all while you are trying to hit revenue targets of $730-733 million for the fiscal year. Honestly, the biggest win here is that some of the most feared labor law changes appear to have been temporarily shelved by the courts.

New Federal Overtime Rules: A Stayed Threat

The big headline that kept HR departments up at night was the Department of Labor's final rule that planned to raise the salary threshold for overtime exemption to $58,656 per year, effective January 1, 2025. For a company like Portillo's Inc., this meant potentially reclassifying many salaried shift managers or assistant general managers, forcing overtime pay calculations for any hours over 40. This would have directly increased your labor cost base, which is already under pressure with commodity inflation running at 3-5%. However, as of late 2025, a federal court decision in late 2024 effectively vacated that rule, returning the threshold to the prior level of $35,568 annually. This is a temporary reprieve, not a final victory; you must still track the legal challenges, but for now, the immediate cost shock is avoided.

Corporate Transparency Act (CTA) Administrative Burden

Compliance with the Corporate Transparency Act's Beneficial Ownership Information (BOI) reporting has been a headache. The initial deadline for existing entities was January 1, 2025, but this was immediately followed by legal challenges and enforcement suspensions throughout the first quarter of 2025. By March 2025, the Treasury Department issued an interim final rule that significantly narrowed the scope, intending to only require reporting from foreign reporting companies. For Portillo's Inc., which is a domestic entity, this might mean the administrative burden is greatly reduced or eliminated, but you absolutely cannot stop monitoring this. If the final rule reverts to the original scope, you'll need to quickly identify and report beneficial owners for every subsidiary or LLC structure you use to hold assets or operate locations.

State-Specific Health and Safety Compliance

As you execute your revised plan to open 8 new units in fiscal 2025, you are constantly dealing with a patchwork of state and local laws. Every time you enter a new county or state-say, expanding further into the Sunbelt-you face new compliance costs for food safety, health inspections, and local permitting. These aren't abstract; they translate directly into delayed opening dates or increased pre-opening capital expenditure. For example, your first airport location planned for DFW in 2026 will face unique FAA and airport authority regulations on top of standard Texas health codes.

Tax Law Expiration and Capital Investment

The expiration of key Tax Cuts and Jobs Act (TCJA) provisions at the end of 2025 is a major factor for your capital deployment strategy. While the federal corporate tax rate reduction to 21% is permanent law, the incentive for immediate capital expenditure via 100% bonus depreciation is phasing out. This deduction allows you to expense the full cost of new assets immediately. For your new builds, where projected net build costs averaged below $5 million per unit in 2026, the loss of full expensing means a larger portion of that investment will be capitalized and depreciated over many years, increasing your near-term taxable income. This makes the decision to deploy capital for new restaurants slightly less tax-efficient than it was previously.

Here's the quick math on the key legal/regulatory factors as of late 2025:

Legal Factor	2025 Status/Value	Potential Financial Impact on Portillo's Inc.
Federal Overtime Salary Threshold	$35,568 (Court-enjoined from $58,656)	Avoided immediate labor cost increase; risk remains pending appeal.
Corporate Tax Rate (Federal)	21% (Permanent)	Stable, favorable statutory rate for reported net income.
Bonus Depreciation (CapEx Deduction)	Phasing out; fully eliminated after 2026	Increased taxable income on new unit CapEx (e.g., $5 million build costs).
BOI Reporting (Domestic Entities)	Scope narrowed by March 2025 IFR; enforcement suspended/narrowed	Reduced administrative cost/burden, but requires ongoing monitoring for final rule.

What this estimate hides is the cost of non-compliance-the fines for a missed BOI report or a labor audit are far higher than the administrative cost to prevent them. Still, you need to be ready for the next legislative or judicial shift.

Finance: draft a sensitivity analysis on the impact of a 20% bonus depreciation reduction on the 2026 CapEx budget by Friday.

Portillo's Inc. (PTLO) - PESTLE Analysis: Environmental factors

You're looking at how Portillo's Inc. is handling the environmental side of its operations, which is increasingly important for both reputation and cost management. Honestly, they've been making tangible moves away from less friendly materials, which is smart, especially when commodity costs are climbing.

Ongoing strategic shift from Styrofoam and bleached paper to 100% recyclable brown kraft paper bags and paper cups.

The move away from older packaging materials is a clear, ongoing effort at Portillo's. They've been systematically swapping out materials that are harder to recycle or require bleaching for more sustainable alternatives. For instance, they switched from bleached white paper bags to brown kraft paper bags, which are 100% recyclable and made from fibers certified by the Sustainable Forestry Initiative. This isn't just a one-off; it's a pattern across their consumables.

To be fair, this kind of change is happening across the board in foodservice, but Portillo's is documenting it well. They've also updated their rib boxes from bleached to natural, recyclable boxes, and transitioned soft drink cups from foam to paper. It shows they are actively managing their material footprint.

New restaurant designs incorporate energy-efficient lighting, reducing energy use by as much as 55% in retrofitted locations.

When you look at the operational side, energy use is a big lever for both cost control and environmental impact. Portillo's has been proactive here. They've retrofitted most of their existing restaurant base with more energy-efficient lighting. The reported savings in lighting energy use for these retrofitted spots is as high as 55%. Plus, every new restaurant they build now incorporates this same energy-efficient lighting from the start. That's a permanent reduction in their baseline energy demand, which helps offset rising utility costs.

It's a concrete example of capital expenditure driving long-term operational savings. If onboarding a new location takes time, this efficiency is baked in immediately.

High reliance on beef as a core product exposes the supply chain to climate-related commodity price volatility.

Here's where the rubber meets the road for a Chicago-style favorite spot: beef. Your core product means your input costs are tied directly to the agricultural sector, which is highly susceptible to climate events. We saw this pressure in the third quarter of fiscal 2025, where commodity prices, which include beef, were negatively impacted by a 6.3% increase year-over-year. That volatility is a real risk to your margins, even if you manage to pass some of it on via menu price increases, like the approximate 3.2% increase in certain menu prices seen in Q3 2025.

The industry is responding, though. For example, the U.S. beef sector has goals for tangible action on GHG reduction by 2030, and some retail/foodservice companies are assessing deforestation risk in their beef supply chains by 2025. Portillo's needs to ensure its sourcing aligns with these evolving sustainability benchmarks to mitigate future supply shocks.

Packaging changes, like switching gravy from plastic tubs to pouches, aim to eliminate waste by nearly 100x for that item.

This is the kind of precision I like to see. It's not just a vague promise; it's a targeted waste elimination effort. The switch for gravy packaging, moving from plastic tubs to pouches, is projected to eliminate waste from that specific item by nearly 100 times. That's a massive reduction in a single, high-volume component of your waste stream. It's a clear win for both the environment and for potentially lowering waste disposal fees.

Here's a quick view of some of these key environmental actions and data points:

Initiative Area	Specific Action/Metric	Reported Value/Goal	Timeframe/Context
Energy Efficiency	Reduction in lighting energy use in retrofitted restaurants	Up to 55%	Ongoing/Retrofit Program
Packaging Waste Reduction	Gravy packaging waste elimination (Tubs to Pouches)	Nearly 100x	Completed by Q1 2023
Commodity Risk	Increase in commodity prices impacting costs	6.3% increase	Q3 Fiscal 2025
Sustainable Sourcing	Industry goal for GHG reduction in beef processing	Deliver on goal by 2030	Industry Benchmark
Revenue Context	Total Revenue	$181.4 million	Q3 Fiscal 2025

You should definitely track the cost savings realized from the 55% lighting efficiency against the increased food, beverage, and packaging costs mentioned in the Q3 2025 results. Finance: draft 13-week cash view by Friday.