{"id":842921,"date":"2025-04-28T17:01:13","date_gmt":"2025-04-28T21:01:13","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/portillos-announces-plan-to-further-strengthen-board-through-cooperation-agreement-with-engaged-capital\/"},"modified":"2025-04-28T17:01:13","modified_gmt":"2025-04-28T21:01:13","slug":"portillos-announces-plan-to-further-strengthen-board-through-cooperation-agreement-with-engaged-capital","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/portillos-announces-plan-to-further-strengthen-board-through-cooperation-agreement-with-engaged-capital\/","title":{"rendered":"Portillo\u2019s Announces Plan to Further Strengthen Board Through Cooperation Agreement with Engaged Capital"},"content":{"rendered":"

\nParties will work together to identify a new director with restaurant operations experience
\n<\/h2>\n
\n

CHICAGO, April 28, 2025 (GLOBE NEWSWIRE) — Portillo\u2019s Inc. (\u201cPortillo\u2019s\u201d or the \u201cCompany\u201d) (NASDAQ: PTLO), the fast-casual restaurant concept known for its menu of Chicago-style favorites, today announced that it has entered into a cooperation agreement with Engaged Capital, LLC (\u201cEngaged Capital\u201d). As part of the cooperation agreement, Portillo\u2019s and Engaged Capital will cooperate to identify a new director with recent and relevant restaurant operating experience to be appointed to the Portillo\u2019s Board of Directors.<\/p>\n

\u201cWe are pleased to have reached this agreement with Engaged Capital,\u201d said Michael A. Miles, Jr., Portillo\u2019s Chair of the Board. \u201cThe Board is committed to overseeing decisive action to drive traffic, improve margins and deliver industry-leading unit economics for shareholders. We appreciate the partnership with Engaged Capital to identify a new director to bring additional expertise to our Board, in addition to the role they played in introducing us to Jack Hartung, who was appointed to the Board in January.\u201d<\/p>\n

\u201cAlthough we wish him well in his new role, we were disappointed it resulted in one of our nominees having to withdraw from this process. We are pleased to have been able to work constructively with the Board on an alternative solution for adding a highly qualified director with restaurant operating expertise,\u201d said Glenn W. Welling, Founder and Chief Investment Officer of Engaged Capital. \u201cPortillo\u2019s is one of the most iconic brands in the restaurant industry as demonstrated through industry leading AUVs in and outside of Chicago. Through the actions being taken to shrink restaurant size, drive sustainable same store sales, and improve restaurant margins, we continue to see a significant opportunity to create as much value for shareholders as Portillo\u2019s delivers to their customers.\u201d<\/p>\n

Engaged Capital has also agreed to certain customary standstill and voting agreements. The cooperation agreement between the Company and Engaged Capital will be filed on a Form 8-K to be filed with the Securities and Exchange Commission.<\/p>\n

\n Advisors<\/strong>
\n
BofA Securities is serving as financial advisor, and Sidley Austin LLP is serving as legal counsel to Portillo\u2019s. Olshan Frome Wolosky LLP is serving as legal counsel to Engaged Capital.<\/p>\n

\n About Portillo\u2019s<\/strong>
\n
In 1963, Dick Portillo invested $1,100 into a small trailer to open the first Portillo\u2019s hot dog stand in Villa Park, IL, which he called \u201cThe Dog House.\u201d Years later, Portillo\u2019s (NASDAQ: PTLO) has grown to more than 90 restaurants across 10 states. Portillo\u2019s is best known for its Chicago-style hot dogs, Italian beef sandwiches, char-grilled burgers, fresh salads and famous chocolate cake. Fans can join Portillo\u2019s Perks, the brand\u2019s loyalty program, at Portillo\u2019s.com\/perks to earn and redeem delicious rewards and offers. Portillo\u2019s also ships food to all 50 states via its website.<\/p>\n

\n About Engaged Capital
<\/strong>Engaged Capital, LLC (\u201cEngaged Capital\u201d) is an investment advisor with a private equity-like investing style in the U.S. public equity markets. Engaged Capital seeks to help build sustainable businesses that create long-term stockholder value by engaging with and bringing an owner\u2019s perspective to the managements and boards of undervalued public companies and working with them to unlock the embedded value within their businesses. Engaged Capital focuses on delivering superior, long-term, risk-adjusted returns for our limited partners. Engaged Capital was established in 2012 and is based in Newport Beach, California. Learn more at\u00a0www.engagedcapital.com<\/a>.<\/p>\n

\n Forward Looking Statements <\/strong>
\n
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business, and are based on currently available operating, financial and competitive information which are subject to various risks and uncertainties, so you should not place undue reliance on forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “anticipate,” “believe,” “commit,” “estimate,” “expect,” “forecast,” “outlook,” “potential,” “project,” “projection,” “plan,” “intend,” “seek,” “may,” “could,” “would,” “will,” “should,” “can,” “can have,” “likely,” the negatives thereof and other similar expressions.<\/p>\n

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following:<\/p>\n