Portillo’s (PTLO)

Consumer Discretionary

Quo Vadis Capital

PTLO has <100 locations, is growing >10% annually, with solid margins (22% RLM, 11% EBITDA), attractive unit economics (25% ROIC) and trades at a discount to the value of its foreseeable growth as well as a discount to its peers. John Zolidis believes the group's transition to smaller format restaurants will lead to even better unit economics and further derisk growth. Using his estimates (near consensus), John forecasts up to 85% upside over the next two years assuming a modest growth multiple.

- 03 May, 2024