Portillo's Plans Closures, Raises Outlook

The Chicago-based chain posted higher third-quarter sales and closes underperforming restaurants outside Chicagoland.

Updated on Nov. 5, 2026 in Dining Out

Isometric editorial illustration of an empty steel fryer basket above a prep counter with paper liners and a brass scale, in muted oxblood, teal, and mustard tones. — Portillo's reported third-quarter revenue of $194.1 million and raised its 2026 adjusted EBITDA guidance while planning to close underperforming restaurants outside Chicagoland. AI Illustration. Upload story photo >

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Portillo's reported revenue of $194.1 million for the quarter ended Sept. 27, up 7%, with same-restaurant sales rising 1.4%. The company also plans to close a mid-to-high single-digit number of underperforming restaurants outside Chicagoland and raised its 2026 adjusted EBITDA guidance to $98 million to $101 million.

Why it matters

The closures signal a shift toward a smaller, more selective footprint, with the chain weighing each unit's sales and restaurant-level margins before deciding which to shut down. For diners across the country, the move shows how a fast-casual chain is pairing higher menu prices with fewer locations.

Portillo's reported Q3 revenue of $194.1 million, up 7%, and same-restaurant sales growth of 1.4%, driven by a 2.1% rise in average check despite a 0.7% drop in transactions. The company expects 2026 revenue of $768 million to $773 million, but the number and exact locations of closures remain unspecified.

The players

Portillo's

A Chicago-based fast-casual restaurant chain known for Italian beef and chocolate cake shakes, operating 109 company-owned restaurants.

The details

Portillo's said it weighed each unit's sales, restaurant-level margins and projected performance when deciding which restaurants to close, with most closures expected in the fourth quarter. The company is also cutting the number of restaurants each field leader oversees and is testing a 2028 prototype of about 4,600 square feet, more than 40% smaller than its previous average restaurant.

Sept. 27, 2026: Quarter ended with the third-quarter results reported.
Fourth quarter 2026: Most restaurant closures are expected to take place.
2028: New prototype restaurants and a cash-on-cash return target are slated to begin.

Culture Shift

Portillo's move away from rapid expansion toward smaller, more profitable units departs from the unit-growth model that drove fast-casual chains during the 2010s. The shift reflects a broader restaurant-industry recalibration as chains weigh higher menu prices against softening customer traffic.

Diners in Texas and other markets outside Chicagoland may see fewer Portillo's locations as underperforming restaurants close, while seven new openings so far in 2026 have all been in Texas. Customers may also notice higher menu prices, since the average check rose 2.1% even as transactions declined.

The takeaway

Chains that expand more slowly and price higher are trading traffic for margin, a tradeoff diners will feel in both which locations they can visit and what they pay. Watching which restaurants close in the fourth quarter will show where Portillo's sees its weakest markets.

What happens next

Portillo's expects most of its restaurant closures to occur in the fourth quarter of 2026, and its new 2028 prototype restaurants are slated to begin in 2028.