Dive Brief:
- Portillo’s has appointed former Darden CEO Eugene Lee, Jr. to its board of directors, effective immediately, according to a Monday press release.
- Lee has decades of restaurant experience, including a period as chairman of the board at Darden, which ended in 2023, a year after he retired from his post as CEO there.
- This appointment is part of the chain’s April agreement with activist investor Engaged Capital, which includes a requirement to add a director with “recent and relevant restaurant operating experience.”
Dive Insight:
Lee brings extensive knowledge about how to expand and grow restaurant revenue that could assist Portillo’s as it pushes for more nationwide growth. During his seven year tenure as Darden’s leader, revenue increased by over $2 billion and the company’s market capitalization almost tripled to $20 billion, according to the press release. Lee originally joined Darden after it acquired Rare Hospitality International in 2007. At Darden, he held several leadership positions, including president and chief operating officer.
Engaged Capital, which owned about 7.3% of Portillo’s as of March, initially pushed for the hot dog chain to boost restaurant-level profitability, redesign outdated locations and improve national marketing, according to Reuters. It put two of board of director nominations before reaching the agreement with Portillo’s in April.
Portillo’s has been working on various ways to engage with guests, including launching a loyalty program without an app and testing computer vision to improve drive-thru times. It also is testing breakfast in a handful of locations in Chicago and is developing smaller locations. During the first quarter, it reported same-store sales growth of 1.8% and an increase in restaurant-level adjusted EBITDA of $0.3 million.
The addition of Lee to the board comes a few months after Portillo’s added Jack Hartung, former president and chief strategy officer at Chipotle to its governing body.
