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Showing posts with the label Iconic Fast-Food Chain Experiences Its First Major Stumble After Going Public

Iconic Fast-Food Chain Experiences Its First Major Stumble After Going Public

Beloved Chicago-based restaurant chain Portillo's went public last month, and at first, it seemed like a highly successful debut. But a mere few weeks after the company opened for trading, Portillo's is experiencing its first stumble, thanks to the latest earnings report that outlines its struggles with labor and ingredient costs . While the company reported a rise in revenue of 15.3%, its operating income fell by 8.8%. The chain spent more money on wages (hourly wages were nearly 20% higher in this quarter) in order to retain employees, and was paying more for ingredients like beef. Additionally, the chain revealed it was still understaffed. RELATED: America's Largest Coffee Chain Is Dealing With a Major Operational Glitch These factors ended up causing its stock to plummet nearly 22% after the quarterly results were made public. Although by day's end the stock price had somewhat recovered was only down by about 10%, the decline still represented the wiping out of m