Activists are keeping up the pressure in 2025 with two fresh proxy fights emerging as shareholders push for changes at Portillo’s Inc. (NASDAQ: PTLO) and Quanterix Corp. (NASDAQ: QTRX). Engaged Capital and Kent Lake PR LLC are each advocating for board refreshment, citing strategic missteps and underperformance at their respective targets. Here’s a breakdown of the key developments in each case.
Engaged Capital Challenges Portillo’s Board Over Underperformance
Portillo’s, the fast-casual restaurant chain known for its Chicago-style hot dogs and Italian beef sandwiches, has seen its stock decline by -9.2% over the past year and -44.3% over three years. Engaged Capital, an 8.6% shareholder, has launched a proxy fight to add two independent directors at the company’s 2025 Annual Meeting, arguing that operational inefficiencies and weak marketing are stifling growth. Engaged Capital has been busy this year already reaching an agreement with Evolent Health (NYSE: EVH) to put Brendan Springstubb on the board in February.
Engaged Capital’s Nominees:
- Charlie Morrison – Former CEO of Wingstop, where he took the stock from just over $30 to over $120 over his almost ten year tenure. He also has leadership experience at Salad and Go and Pizza Inn, making him well-versed in high-growth restaurant operations.
- Nicole Portwood – A seasoned marketing executive with experience as CMO of Tito’s Handmade Vodka, PepsiCo’s Mountain Dew, and Live Nation. Most recently, she served as CMO of Salad and Go, focusing on brand expansion and customer engagement.
Key Concerns & Proposed Changes:
Engaged Capital believes Portillo’s has strong fundamentals but is underperforming due to:
- Outdated restaurant operations
- Ineffective marketing strategies
- Lower-than-expected restaurant-level cash returns
To unlock shareholder value, Engaged Capital is advocating for:
- Increased same-store sales
- A more disciplined new unit development strategy
- Enhanced technology adoption
- Targeted marketing initiatives
Despite initially attempting to work with Portillo’s behind closed doors to add Morrison to the board, discussions failed. Now, Engaged Capital is urging shareholders to back both nominees to drive much-needed improvements.
Kent Lake Opposes Quanterix’s Merger with Akoya, Pushes for Board Overhaul
Quanterix, a life sciences company focused on precision diagnostics, has faced an even steeper decline, with its stock down 69.8% over the past year and 79.0% over three years. Kent Lake PR LLC, a 6.9% shareholder, has taken issue with the company’s proposed merger with Akoya Biosciences, arguing that the deal is highly dilutive and distracts from core business opportunities in Alzheimer’s testing and diagnostics. Kent Lake first announced its investment in their February 13th 13D filing.
Kent Lake’s Nominees:
- Alexander G. Dickinson, PhD – Former SVP at Illumina, where he helped drive revenue from $900M to $2.4B. He has successfully built and sold biotech companies (Helixis, Luxtera) and has deep expertise in life sciences and diagnostics.
- Bruce Felt – A veteran CFO with experience at tech firms like Domo and SuccessFactors. He brings significant capital allocation and governance experience, making him a strong candidate for the Audit Committee.
- Hakan Sakul, PhD – A precision medicine expert who led Pfizer’s diagnostics division. He specializes in biomarker technologies and regulatory strategy, offering valuable insight into clinical research and commercialization.
Kent Lake’s Opposition to the Akoya Deal:
Kent Lake argues that Quanterix’s proposed merger with Akoya:
- Introduces unnecessary financial and operational risks
- Dilutes shareholder value
- Shifts focus away from Quanterix’s core strengths in diagnostics and Alzheimer’s research
The activist is urging shareholders to reject the merger and support its three nominees, asserting that a refreshed board will restore financial discipline and refocus the company on organic growth.