Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO) and reminds investors of the January 11, 2027 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261112991249/en/

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Portillo’s rapid expansion was going poorly, as it overbuilt in areas without any name recognition, cannibalized its own stores, and marketing could not drive enough additional interest to justify the expansion; (ii) the Company was having to offer promotions to drive interest, which was decreasing same-restaurant sales; and (iii) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 5, 2025, the Company cut its 2025 revenue growth guidance roughly in half along with a drastic reduction in adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) growth. On this news, the Company’s stock price fell $2.21 per share, or 23.2%, from $9.49 per share on August 4, 2025, to close at $7.28 per share on August 5, 2025, on unusually heavy volume.

On May 5, 2026, before the market opened, Portillo’s announced disappointing financial results that included: (i) a same-restaurant sales decrease of 0.1%; (ii) a decrease in operating income of $5.9 million, to just $4.5 million from $10.4 million; (iii) a net loss of $0.5 million; (iv) a restaurant-level adjusted EBITDA of $34.8 million, a decrease of $1.8 million; and (v) adjusted EBITDA of $18.5 million, a decrease of $2.8 million. On this news, Portillo’s stock price fell $1.23 per share, or 21.5%, from $5.72 per share on May 4, 2026, to close at $4.49 per share on May 6, 2026, on unusually heavy volume.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Portillo’s’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Portillo’s class action, go to www.faruqilaw.com/PTLO or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Frequently Asked Questions (FAQ) for Investors Regarding the Portillo’s Securities Class Action Lawsuit:

What is the Portillo’s securities fraud lawsuit about?

The lawsuit alleges that Portillo’s Inc. and certain of its officers made materially misleading statements and/or omissions during the Class Period regarding the Company’s business, operations, and prospects. Specifically, the complaint alleges that Portillo’s rapid restaurant expansion was performing poorly, as the Company allegedly overbuilt in markets lacking sufficient name recognition, cannibalized sales at its existing locations, and failed to generate adequate consumer interest through marketing efforts. The lawsuit further alleges that Portillo’s was relying on promotional discounting to drive customer traffic, which was allegedly eroding same-restaurant sales performance. As a result of these alleged conditions, defendants’ positive public statements about the Company’s growth and outlook are alleged to have been materially misleading and/or lacking a reasonable basis.

Who may be eligible to participate in the lawsuit?

Investors who purchased or otherwise acquired Portillo’s Inc. (NASDAQ: PTLO) securities on the NASDAQ between September 19, 2023 and May 4, 2026, inclusive, may be eligible to participate in the lawsuit. If you purchased Portillo’s shares during this Class Period and suffered a loss, you may have certain legal rights worth exploring with qualified securities counsel. Importantly, participation in the lawsuit is not limited to those who seek appointment as lead plaintiff; eligible class members may share in any recovery without taking on a formal leadership role. Faruqi & Faruqi, LLP encourages potentially affected investors to contact the firm to learn more about their rights and options.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including working closely with counsel on case strategy and settlement decisions. Any investor who purchased Portillo’s securities during the Class Period may move for appointment as lead plaintiff, and the deadline to file such a motion is January 11, 2027. Courts generally appoint the movant with the largest financial interest in the case who also meets the adequacy requirements of the applicable rules. It is important to note that an investor need not serve as lead plaintiff to participate in the class and potentially share in any recovery that may be obtained.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Portillo’s securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

Media gallery

About The Author
Business Wire