Portillo’s CEO out as company transitions under activist investor
Portillo’s Inc., the fast-casual restaurant concept known for its menu of Chicago-style favorites, is transitioning to new leadership after company president and Chief Executive Officer Michael Osanloo resigned, officials announced Monday.
The Oak Brook-based company’s board appointed Chairman Michael A. Miles, Jr., as interim CEO, effective immediately. Osanloo also has stepped down from the board and will support the transition as a special adviser to Miles and the board over the next 90 days, according to a news release.
“Leading Portillo's has been one of the great honors of my career,” Osanloo said in the release. “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.”
California-based hedge fund Engaged Capital has been pushing for changes since it took a nearly 10% stake in the company more than a year ago, according to industry sources.
Engaged Capital has been pushing Portillo’s to continue national expansion but slash costs, aggressively shrinking the size of new restaurants and restructuring the way the chain interacts with landlords, sources report.
The Portillo’s board has established a search committee — directors Paulette Dodson, G.J. Hart, Eugene I. Lee Jr., and Miles — that will be assisted by a leading executive search firm to identify the company’s next CEO.
Lee also was appointed as lead independent director during this transition.
Miles brings extensive leadership experience in the retail and restaurant industries. He previously served as president and chief operating officer of Staples and chief operating officer of Pizza Hut with Yum Brands, after beginning his career at Bain & Co. He has served as Portillo’s board chairman since 2014 and was 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 the release. “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.”
Founded in 1963, Portillo’s has grown from a small hot dog trailer in Chicago to more than 90 restaurants across 10 states. It is known for its Italian beef sandwiches, Chicago-style hot dogs, char-grilled burgers, fresh salads and iconic chocolate cake.