Up 16% Today, This Restaurant Stock Could Outshine Chipotle

Portillo's (Nasdaq: PTLO) is one of the top growth restaurant stocks long-term because of its great unit economics and expanding growth plans. And great fourth quarter 2023 results have shown just how strong the company is. In this video, Travis Hoium goes over results and explains why he's so bullish on the stock long-term.
----------------------------------------------------------------------------------
💰 If you like this video, check out my free Asymmetric Investing Newsletter for more investment analysis: asymmetric-inv...
TRAVIS ON TWITTER: / travishoium
📊 The charts I use are made with FinChat, the best tool for investment research. I pay for the Pro plan, but you can get started making beautiful charts and asking the AI questions here: finchat.io?lmref=OzAxng
📊 20% Off Investment Research Tool Koyfin: www.koyfin.com...
🎙️ 20% Off Conference Call App Quartr: quartr.com/pri...
🧐Looking for great investment ideas? Visit www.fool.com/asym for ten top stock picks from The Motley Fool.
A portion of this video is sponsored by The Motley Fool.
Visit fool.com/asym to get access to my special offer. The Motley Fool Stock Advisor returns are 545% as of 1/18/2024 and measured against the S&P 500 returns of 138% as of 1/18/2024. Past performance is not an indicator of future results. All investing involves a risk of loss. Individual investment results may vary, not all Motley Fool Stock Advisor picks have performed as well.

[@Shortclips_youtube]

Loading up on portillos ⬆️👍 nothing but upside and positive growth

[@maureencora1]

I Love Portillo's Hot Dogs & Italian Beefs. I was Made in Chicago, IL. (smile) Live in Houston, Texas. Made a Rode Trip to Texas State Fair & Portillo's in Dallas.

[@fashionman998899]

Thank you

[@burstreviews8336]

Are you still interviewing ceo? If so you should inquire on the Berkshire strategy that keeps dinging the stock.

[@GreenspudTrades]

As much as I had many enjoyable lunches at Portillo's, I'm skeptical that this concept will work outside of Chicago. They need a huge staff to run a Portillo's restaurant, much more than a Chipotle. The stock performance has been atrocious - CMG never traded this poorly. Even if its a great company, they could dilute the stock over time. Insiders are selling like its going out of style. As a stock, I don't see why this is any better than LOCO or PBPB.

[@alextheloserable]

Curious if you could elaborate more on your bearishness? I’m skeptical on it.. I live 5 min from one here in North Dallas & never in my life have I seen a restaurant stay as consistently busy as Portillo’s (it’s been open for almost a year now). I am talking 2-4 cops having to manage the traffic.

[@GreenspudTrades]

@@alextheloserable It's a great restaurant (I know coming from Chicago) but the technicals have me unconvinced it's ready to reflect that in the stock just yet. Look at the reaction to the latest earnings release - unimpressive volume and it pulled right back. Share count is increasing. Insiders sold 6.8 million shares, 15% of the outstanding! Why the rush to the exit?

[@TheFoodFund]

Agreed! The company is growing revenue and clearly has a loyal fanbase but management doesn't seem aligned IMHO! The founder has an interesting real estate deal with the company that does not favor shareholders! Shareholder dilution and massive debt are the two biggest concerns I cover in the PTLO stock analysis video on my food and restaurant stocks KZbin channel!

[@GreenspudTrades]

@@TheFoodFund They wouldn't be the first company management using dilution to enrich themselves at the expense of shareholders. Such a scheme can be spotted on the chart when the stock fails to break out over a long period of time despite what seems like repeated good earnings releases. It's because the insiders are crushing it.

[@TheFoodFund]

@@GreenspudTrades Agree 100%. I am always wary of private equity owned newly IPO'd companies! They nearly always denote bad prospects for retail investors! Thanks for sharing!

[@baldbull4397]

They don’t own their land though. That’s bad.

[@253332]

What in the heck is the " Synthetic secondary " transaction they announced after hours... Called it non-dilutive

[@asymmetricinvesting]

They are selling A shares and buying back the B shares owned by Berkshire Partners, who was their private equity owners prior to IPO. They’ve done this a few times. The total share count (Class A + B) hasn’t gone up much but A has as a result of cancelling the B shares.

[@juanlee337]

dude .. they all time lows.. their cashflow is horrendous.. Expanding means DILUTION.. stay away from this stock..

[@asymmetricinvesting]

Not diluting. You need to understand their share structure. They're essentially swapping public shares of shares of the PE firm that owned them. We've known about those shares all along, but most data firms don't include them for some reason so it looks like dilution even though it's not. Don't expect FCF from a restaurant company growing operations. It's expensive to build stand up a new restaurant.

[@JackOfAllTrades428]

Would you please cover $OLPX. I would really appreciate it.