Former Darden CEO and chair Gene Lee has joined the board of directors at Portillo’s as an independent member, the company announced Monday.
Lee, an industry veteran, was CEO of the casual-dining powerhouse Darden from 2015 to 2022, and chair of the group’s board from 2021 to 2023, before he retired. Under his leadership, the parent of Olive Garden, LongHorn Steakhouse, Ruth’s Chris Steakhouse and more grew revenue by more than $2 billion, tripling Darden’s market capitalization to $20 billion, Portillo’s said.
The appointment comes after a bit of a scuffle with activist investor Engaged Capital LLC, which last year had warned it would be taking “steps to unlock the intrinsic value” of Portillo’s business, including considering a sale.
Engaged Capital introduced Chipotle President Jack Hartung to Portillo’s in January, and he is now on Portillo’s board. Then, in March, Engaged nominated two more board members: Charlie Morrison, the CEO of Salad and Go, and Nicole Portwood, the drive-thru salad chain’s former CMO.
But Morrison threw a wrench in by accepting the job of leading Jersey Mike’s, forcing a change of plans. In April, Portillo’s said it would work with Engaged to find an alternative.
Lee appears to be the candidate that satisfied all involved.
Portillo’s said the appointment was “made in alignment with the terms” of the cooperation agreement and is supported by Engaged Capital.
“Gene is one of the best operators in the restaurant industry and will be a tremendous asset in the Portillo’s boardroom helping the company continue to execute its growth strategy and deliver strong unit economics,” said Glenn Welling, founder and CIO of Engaged Capital, in a statement.
Mike Miles, chairman of Portillo’s board, concurred, saying in a statement, “Gene has dedicated his career to the restaurant industry. His rise from bussing tables to running the world’s premier casual-dining company gives him an understanding of all the facets of the business from how to run a great shift to how to best position brands for growth in new markets.
“He has a passion for the people who work on the front lines and for delivering value to customers and shareholders,” Miles added. “We are excited to have his experience and wisdom on the Portillo’s board.”
Lee has also been appointed to the compensation committee of Portillo’s board, the company noted in a filing with the U.S. Securities and Exchange Commission.
Chicago-based Portillo’s has close to 100 units and is growing across the Sun Belt with units designed to cut buildout costs. The chain launched a new loyalty program this year and is seeing success with the rollout of in-store kiosks.
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