Fund previously exacted changes at Shake Shack and Del Frisco’s Restaurant Group
Portillo’s Inc. has drawn the attention of an activist investor, Engaged Capital LLC, which reportedly has been in talks with the fast-casual company, Securities and Exchange Commission filings indicate.
Engaged Capital LLC, based in Newport Beach, Calif., and the Cayman Islands, filed documents Thursday that note it owns at least 9.9% of the Chicago company’s shares.
In May 2023, Engaged reached an agreement with New York-based Shake Shack Inc. to stave off a proxy battle and to appoint former Domino’s Pizza chief financial officer Jeffrey Lawrence to its board. The companies also agreed to hire an operational consulting firm and enhance corporate governance at the fast-casual burger chain.
CNBC reported Friday that Engaged, in talks with Portillo’s, has urged it to no longer own and develop its real estate and to reduce the size of restaurant units.
In 2019, Engaged was active in changes at Irving, Texas-based Del Frisco’s Restaurant Group, which was later sold.
For the second quarter ended June 30, Portillo’s net income slipped to $6.5 million, or 10 cents a share, from $6.8 million, or 12 cents a share, in the prior-year period. Revenue increased 7.5%, to $181.9 million from $169.2 million in the same quarter last year. Same-store sales declined 0.6% in the quarter.
Portillo's, founded in 1963, has 88 restaurants in 10 states.
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