Investment firm Engaged Capital plans to nominate two director candidates to the fast-casual restaurant chain Portillo’s board for election at its 2025 Annual Meeting of Shareholders.
The nominees, Charlie Morrison and Nicole Portwood, have experience in restaurant operations and marketing, respectively.
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Morrison led Wingstop as president and CEO from 2012 to 2022 and served as CEO of Salad and Go from April 2022 to October 2024.
Portwood, a branding expert, was chief marketing officer at Salad and Go from October 2023 to February 2025, leading initiatives to strengthen brand positioning and customer engagement.
Engaged Capital, which holds 8.6% of Portillo’s outstanding Class A common stock, submitted a letter to the company’s board proposing the nominations to “dramatically improve Portillo’s ability to execute and close the gap with industry peers”.
In a statement, Engaged criticised Portillo’s performance, describing it as “…suffering due to outdated restaurant operations, ineffective marketing and lower than justified restaurant-level cash-on-cash returns. Although these issues have led to a depressed valuation for the company, they are all readily fixable.”
To enhance profitability, the firm is calling for refinements in new unit development, modernisation of restaurant operations and technology, and targeted marketing investments to boost brand awareness and drive customer traffic.
Portillo’s acknowledged the receipt of Engaged Capital’s nominations and defended its ongoing initiatives, stating: “At the restaurant level, Portillo’s is driving results through the launch of its Portillo’s Perks loyalty programme, kiosks, operational enhancements and advertising beyond Chicagoland. The brand is also strategically expanding its restaurant count, leveraging the smaller Restaurant of the Future (ROTF) format and other potential upcoming formats to drive enhanced cash-on-cash returns.
The restaurant company’s board will formally present its recommendation regarding director nominations in its proxy materials, which will be filed with the US Securities and Exchange Commission ahead of the 2025 annual meeting.
Portillo’s, known for its Chicago-style hot dogs, crinkle-cut fries and chocolate cakes, is valued at $1bn.
In May 2023, the brand launched its latest menu item, the Rodeo Burger.
