By Elena Vasquez

Portillo’s will close up to nine restaurants outside the Chicago metro area even as third-quarter revenue rose 7% year over year to $194.1 million, as management separates weak outlets from continued network growth.

The Chicago-based fast-food company described the outlets as “underperforming.” It has not announced which restaurants will close or when, although it said most closures would take place this year. Portillo’s operates 109 restaurants nationwide, including 20 in Illinois, and has a strong Chicago following built around hot dogs, Italian beef and other sandwiches.

What do the results show?

Revenue reached $194.1 million in the third quarter, compared with $181.4 million in the same period of 2025, an increase of $12.7 million. Adjusted EBITDA totaled $26.5 million for the quarter, while same-restaurant sales rose 1.4% year over year.

Portillo’s attributed the comparable-sales increase to a higher average check per customer, which the company linked to menu price increases. Pricing is the stated driver in the figures cited; they do not provide a separate transaction-growth measure.

The 5.6-percentage-point gap between total revenue growth and same-restaurant sales indicates that chainwide revenue advanced faster than established restaurants, consistent with contributions from new units. Under CEO Stephanie Mehta, Portillo’s is strengthening the existing portfolio while continuing to pursue development.

How large is the closure program?

Up to nine restaurants will close outside the Chicago metro area. The final locations and closure dates remain unannounced, but Portillo’s has said most of the closures would occur this year.

The company has 20 locations in Illinois and 109 nationwide. Chicago remains its home base and a strong-following market, while the shutdowns target a broader group of underperforming restaurants outside the metro area.

The move comes as other fast-food chains face difficulties, including a large Wendy’s franchisee that recently filed for bankruptcy. Portillo’s, by contrast, reported rising quarterly revenue and positive adjusted EBITDA.

Where is Portillo’s still expanding?

Portillo’s opened seven restaurants across Texas in the first half of the year, lifting its Texas total to 20. Chicago will get a new location by year-end, and the company plans four to six additional restaurant openings in 2027.

In an email, a company spokesperson said the chain remains committed to expansion. “The company remains focused on strengthening its existing restaurant portfolio and pursuing new development opportunities that support sustainable, profitable growth,” the spokesperson said.

The two commitments define Portillo’s near-term plan: remove as many as nine underperforming outlets, most this year, while adding locations in Texas and Chicago this year and four to six more in 2027.

Nine potential closures equal about 8% of the 109-store base, while the Texas buildout added seven sites in six months. Portillo’s has not specified the markets or sites for the 2027 openings.

What does the market signal?

Portillo’s shares trade at around $7 on Nasdaq under ticker PTLO and are up close to 50% this year. Those gains sit alongside $194.1 million in quarterly revenue, $26.5 million in adjusted EBITDA and a decision to close as many as nine restaurants.

Portillo’s enters the rest of the year with a two-track plan: close up to nine underperforming restaurants, most this year, while adding sites in Texas and Chicago, followed by four to six openings in 2027.