Portillo's Inc.PTLO

Portillo's Inc. Earnings Per Share Disclosure

10-KFiled Feb 24, 20262 min read
EARNINGS PER SHARE
Basic net earnings per share of Class A Common Stock is computed by dividing net income attributable to Portillo's Inc. by the weighted-average number of Class A common stock outstanding.

Diluted earnings per share is computed by dividing net income attributable to Portillo's Inc. by the weighted-average number of dilutive securities, using the treasury stock method.
The computations of basic and diluted earnings per share for the years ended December 28, 2025, December 29, 2024 and December 31, 2023 are as follows (in thousands):
Fiscal Years Ended
December 28, 2025December 29, 2024December 31, 2023
Net income
$21,092 $35,076 $24,818 
Net income attributable to non-controlling interests
1,747 5,559 6,394 
Net income attributable to Portillo's Inc.
$19,345 $29,517 $18,424 
Shares:
Weighted-average number of common shares outstanding-basic68,821 61,050 53,807 
Dilutive unit awards2,266 2,932 3,501 
Weighted-average number of common shares outstanding-diluted71,087 63,983 57,308 
Basic net income per share
$0.28 $0.48 $0.34 
Diluted net income per share
$0.27 $0.46 $0.32 

Shares of the Company’s Class B Common Stock do not participate in the earnings or losses of Portillo's Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B Common Stock under the two-class method has not been presented.
The following outstanding shares were excluded from the calculation of diluted earnings per share because they would be antidilutive or subject to performance conditions which have not been satisfied by the end of the reporting period (in thousands):
Fiscal Years Ended
December 28, 2025December 29, 2024December 31, 2023
Performance Stock Options
344 1,377 1,812 
Performance Stock Units
222 291 — 
Restricted Stock Units
599 137 5 
Stock Options
— 315 — 
Total shares excluded from diluted earnings per share
1,165 2,120 1,817 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards