Portillo’s is on the hunt for a new CEO.
Previous chief executive Michael Osanloo stepped down from his position after seven years, the company announced Monday. While the chain looks for a new leader, chairman Michael A. Miles Jr. will serve as interim CEO. A search committee consisting of board members Paulette Dodson, GJ Hart, Gene Lee, and Miles will work with an executive search firm to find Portillo’s next CEO.
Under Osanloo, the fast casual went public in 2021, back when the chain had 67 locations and dreams of 600 units over the next couple of decades. Since that time, Portillo’s expanded into Texas, developed a drive-thru-only design, and rolled out multiple “restaurant of the future” prototypes that take significant costs out of the construction process. The brand now has nearly 100 restaurants and raised its long-term goal to 920 stores across the U.S.
In 2025, however, the brand has come under fire. Earlier this year, activist investor Engaged Capital publicly criticized Portillo’s performance and urged the chain to switch up its approach. The fast casual later struck a cooperation agreement, which called for Engaged Capital to gain more representation on the board of directors.
Then in August, Portillo’s admitted to struggles in Texas because of marketing missteps. The company said it responded with accelerated efforts to boost awareness, like multichannel marketing campaigns and new local field marketers to lead grassroots efforts.
A few weeks later, Portillo’s announced that it lowered development and sales expectations for 2025 amid negative comps and traffic. The chain is now opening eight stores this year instead of 12, and same-store sales are projected to decline 1 to 1.5 percent, versus prior guidance of 1 to 3 percent growth. Revenue is expected to rise 5 to 7 percent this year, down from the previously expected 10 to 12 percent.
The chain also indicated that it wants to focus on building transactions, simplifying operations (meaning no more breakfast), driving a more tempered pace of restaurant expansion, and positioning itself for positive free cash flow in 2026.
“Leading Portillo’s has been one of the great honors of my career,” Osanloo said in a statement. “I am so thankful to my leadership team and all our team members whose hard work and heart make this brand iconic. Together, we achieved so much, and I will always carry immense pride in having been part of the Portillo’s family.”
Miles brings retail and restaurant experience to the table. He previously served as president and COO of Staples and as COO of Pizza Hut. The industry veteran has also served as chairman of the board since 2014 and worked as interim CEO from 2014 to 2015.
“On behalf of the full Board, I want to thank Michael for his leadership over the last seven years and the role he played in guiding the company through its IPO and expansion to new markets,” Miles said in a statement. “The Portillo’s brand resonates deeply with our guests, but our recent performance has not measured up to expectations. After careful consideration, the Board believes, and Michael agrees, that now is the right time for a leadership transition. We are grateful to Michael for his many contributions to the business and wish him all the best in his future endeavors.”
