Portillo’s (PTLO) Fell due to the Slow Pace of Execution

White Brook Capital Partners, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US economy demonstrated resilience in the quarter, with growth exceeding expectations, driven by high-end consumer spending and significant investments in artificial intelligence. However, softening labor markets may allow for potential cuts to short-term interest rates later this year. White Brooke Capital’s Small Cap Absolute Growth Strategy model portfolio performed well in its first year, exceeding expectations. Value-oriented stocks are underperforming. The All-Cap Portfolio of White Brook Capital shifted to growth companies but remains overweight in value, leading to disappointing performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, White Brook Capital Partners highlighted stocks such as Portillo’s Inc. (NASDAQ:PTLO). Portillo’s Inc. (NASDAQ:PTLO) is a US-based restaurant operator. The one-month return of Portillo’s Inc. (NASDAQ:PTLO) was 0.20%, and its shares lost 52.81% of their value over the last 52 weeks. On December 04, 2025, Portillo’s Inc. (NASDAQ:PTLO) stock closed at $4.95 per share, with a market capitalization of $356.065 million.

White Brook Capital Partners stated the following regarding Portillo’s Inc. (NASDAQ:PTLO) in its third quarter 2025 investor letter:

“Portillo’s Inc. (NASDAQ:PTLO) and the fourth largest loser, Target, Inc (TGT) both have new chief executives leading the companies forward while producing significant operating cash flow. At Portillo’s, while we supported Michael Asanloo’s strategic vision, the pace of execution under his leadership was slow, prompting a change from the board. White Brook’s thesis, available on the WBC website is still intact with the steps for significant improvement largely the same. That was the problem. We expect the company, which has now stated a desire to pursue the most meaningful parts of that thesis, to execute on them with urgency. Board member, and former CEO of Darden Restaurants has assumed the Chief Executive role, at least temporarily, and we believe has the credibility to make changes to the financing and operations strategy to make Portillo’s a successful investment.”

In another article, we covered Portillo’s Inc. (NASDAQ:PTLO) and shared Alger Small Cap Focus Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.