NEW YORK, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased or otherwise acquired Portillo’s Inc. (“Portillo’s” or the “Company”) (NASDAQ: PTLO) securities between September 19, 2023 and May 4, 2026, inclusive (the “Class Period”). The class action charges Portillo’s and certain of Portillo’s top executives with violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants failed to disclose to investors 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.
The Complaint alleges that the Company had approximately 100 restaurants, with about half of those in Illinois. The Complaint alleges that Portillo’s claimed, however, to have a goal of reaching over 900 restaurants, to do so, it needed to expand into additional markets. The Complaint continues to allege that Defendants assured the market that the Company had developed a repeatable playbook for opening new stores and that increased density and scale would inure to Portillo’s benefit. The Complaint alleges that this was untrue. The Complaint alleges that the Company’s expansion has gone poorly, especially in Texas. The Complaint continues to allege that Portillo’s failed to spend enough on marketing and its brand remained largely unknown outside of Illinois. The Complaint alleges that the Company grew too rapidly and cannibalized its own store sales, as a result, the Company’s new restaurants underperformed.
The Complaint alleges that Portillo’s began to disclose the impact of this issue on its results on August 5, 2025. The Complaint continues to allege that on that day, 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. The Complaint alleges that 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.
Investors who purchased or otherwise acquired shares of Portillo’s Inc. should contact the Firm prior to the January 11, 2027 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
