Free cash flow remains pressured, with margins dipping to -0.5% in 2026Q1 as capital expenditures continue to consume a substantial 10.1% of total revenue.
| Cash from Operations | 81.28M | 71.91M | 98.04M | 70.78M | 56.89M | 42.87M | 58.27M | 43.33M |
| Operating CF Margin % | - | 9.82% | 13.8% | 10.41% | 9.69% | 8.01% | 12.79% | 9.04% |
| Operating CF Growth % | 4.64% | -26.65% | 38.51% | 24.42% | 32.69% | -26.42% | 34.5% | - |
| Net Income | 15.63M | 21.09M | 35.08M | 24.82M | 17.16M | -13.42M | 12.26M | 5.55M |
| Depreciation & Amortization | 30.01M | 29.11M | 27.3M | 24.31M | 20.91M | 23.31M | 24.58M | 24.36M |
| Stock-Based Compensation | 7.77M | 6.49M | 11.15M | 15.54M | 16.14M | 29.39M | 960K | 1.29M |
| Deferred Taxes | -365K | 3M | -2.38M | -100K | -3.52M | -3.53M | 0 | 0 |
| Other Non-Cash Items | 2.72M | -476K | 1.21M | 4.14M | 2.35M | 14.14M | 6.82M | 5.24M |
| Working Capital Changes | 24.44M | 12.69M | 25.69M | 2.07M | 3.86M | -7.02M | 13.64M | 6.88M |
| Change in Receivables | -613K | -1.51M | 816K | -761K | 287K | -929K | -473K | 447K |
| Change in Inventory | -993K | -292K | 818K | -1.35M | -1.31M | -1M | -1.18M | -141K |
| Change in Payables | 5.81M | 316K | 11.28M | 209K | -3.62M | 1.79M | 1.35M | -1.78M |
| Cash from Investing | -89.25M | -90.19M | -88.11M | -87.84M | -47.02M | -36.26M | -21.42M | -22.01M |
| Capital Expenditures | -64.84M | -90.44M | -88.19M | -87.92M | -47.06M | -36.18M | -21.45M | -22.05M |
| CapEx % of Revenue | 8.78% | 12.35% | 12.41% | 12.93% | 8.02% | 6.76% | 4.71% | 4.6% |
| Acquisitions | 434K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -24.84M | 242K | 77K | 81K | 44K | 123K | 32K | 33K |
| Cash from Financing | 19.03M | 15.37M | 2.51M | -16.93M | -4.71M | -8.78M | -18.05M | -11.72M |
| Debt Issued (Net) | 26.31M | 23.13M | 4.38M | -13.05M | -3.32M | -158.32M | -18.32M | 1.27M |
| Equity Issued (Net) | 486K | 3.18M | 0 | 0 | 0 | 158.42M | 26K | 100K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -114.96M | -179.31M | -364.96M | -57.01M | 0 | 0 |
| Other Financing | -7.77M | -10.94M | -1.86M | -3.88M | -1.38M | -8.88M | 250K | -13.09M |
| Net Change in Cash | 11.06M | -2.91M | 12.44M | -33.99M | 5.16M | -2.17M | 18.8M | 9.59M |
| Free Cash Flow | -8.58M | -18.52M | 9.85M | -17.14M | 9.83M | 6.69M | 36.82M | 21.28M |
| FCF Margin % | -1.16% | -2.53% | 1.39% | -2.52% | 1.67% | 1.25% | 8.08% | 4.44% |
| FCF Growth % | -205.63% | -288.08% | 157.47% | -274.37% | 46.88% | -81.83% | 73.02% | - |
| FCF per Share | -0.12 | -0.26 | 0.15 | -0.30 | 0.23 | 0.19 | 1.10 | 0.63 |
| FCF Conversion (FCF/Net Income) | -0.55x | 3.72x | 3.32x | 3.84x | 5.24x | 7.16x | 4.75x | 7.80x |
| Interest Paid | 5.64M | 0 | 19.45M | 28.28M | 23.97M | 43.54M | 34.29M | 36.51M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Capital intensity vs unit returns
Based on reported financial statements, the relationship between net income and operating cash flow appears highly volatile, with the OCF/NI ratio reaching an extreme 43.67x in 2026Q1, suggesting that reported earnings are currently failing to capture the underlying cash-generating reality of the restaurant operations.
The massive divergence between net income and operating cash flow indicates that non-cash charges and working capital adjustments are heavily masking the core profitability of the business. Investors should monitor whether this disconnect persists, as it suggests that the company's accounting earnings are not currently reflective of its ability to generate actual cash from its high-volume kitchen model.
As indicated by recent quarterly filings, the company's free cash flow trajectory remains consistently negative or marginal, with FCF margins dipping to -0.5% in 2026Q1, reflecting the difficulty of sustaining positive cash generation amidst an aggressive and capital-intensive unit expansion strategy across new geographic markets.
The inability to maintain positive free cash flow suggests that the capital required to build and maintain the complex, multi-station kitchen architecture is outpacing the cash generated by the existing store base. This trend warrants further investigation into whether the current unit-led growth model can ever achieve the self-funding status necessary for long-term shareholder value creation.
According to historical data, the company's capital expenditure as a percentage of revenue has remained elevated, peaking at 17.4% in 2025Q4, which highlights a structural reliance on heavy reinvestment to maintain the large-format real estate footprints required for the brand's high-volume operational model.
The high capital intensity relative to revenue suggests that the company is locked into a cycle of significant spending to support its expansion, which may be limiting its flexibility during periods of economic volatility. If these capital requirements do not yield proportional increases in mature-store revenue, the company may face continued pressure on its overall liquidity profile.
Based on quarterly cash flow data, working capital changes have been highly inconsistent, swinging from a $11.0M inflow in 2024Q2 to a $4.2M outflow in 2025Q1, indicating that the company's cash conversion cycle is subject to significant fluctuations that complicate short-term liquidity management and operational forecasting.
These erratic swings in working capital suggest that the company may be struggling to optimize its inventory and payables management as it scales into new regions. Investors should monitor these trends closely, as inconsistent working capital management can often be a leading indicator of underlying operational inefficiencies within the supply chain.
Quick answers to the most common questions about buying PTLO stock.
Portillo's Inc. (PTLO) generated $71.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Portillo's Inc. (PTLO) reported negative free cash flow of $18.5M in 2025, indicating capital requirements exceeded cash from operations.
Portillo's Inc. (PTLO) spent $90.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.