First quarter system-wide sales growth of 4.8% including positive same-store sales growth Four shop openings and 40 additional franchise shop commitments in the first quarter Reiterates full-year guidance and introduces 2Q'25 guidance including positive same-store sales of 1.5%-2.5% CHICAGO, May 07, 2025 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB), (“Potbelly” or the “Company”) the iconic neighborhood sandwich shop concept, today reported financial results for its first fiscal quarter ended Marc ...

Core Viewpoint - Potbelly Corporation is set to release its first quarter 2025 financial results on May 7, 2025, and will host a conference call to discuss these results with investors [1][2]. Group 1: Financial Results Announcement - Potbelly will report its financial results for the fiscal first quarter 2025 on May 7, 2025, after market close [2]. - A conference call for investors is scheduled for 5:00 p.m. Eastern Time on the same day, hosted by President and CEO Bob Wright and CFO Steve Cirulis [2]. - The conference call will be accessible via dial-in numbers for U.S. & Canada and international participants, and will also be webcast live on the company's corporate website [2]. Group 2: Company Overview - Potbelly Corporation has been serving customers with warm, toasty sandwiches and other fresh menu items for over 40 years, emphasizing Fresh, Fast & Friendly service [3]. - The company has expanded to over 440 shops across the United States, including more than 90 franchised locations [3].

Potbelly Corporation (PBPB) stock has witnessed a sharp decline of 20.3% in the past month compared with the industry and the S&P 500’s decrease of 3.7% and 3.2%, respectively.The recent decline can be primarily attributed to macroeconomic challenges, stiff competition and high operating costs. A softer macroeconomic environment, including cautious consumer spending and inflationary pressures, continues to hurt discretionary dining.The company also faces heightened competition in the fast-casual segment, es ...

Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] Group 2 - The company has no stock, option, or similar derivative position in any of the mentioned companies and has no plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance is not a guarantee of future results and that no investment recommendations are being made [3]

Potbelly Corporation (PBPB) reported fourth-quarter fiscal 2024, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line declined year over year while the bottom line increased from the prior-year quarter’s figure. Following the results, the company’s shares fell 9.4% during the after-hours trading session yesterday.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.PBPB’s Q4 Earnings & RevenuesFor the fiscal fourth quarter, the company reported a ...

Financial Data and Key Metrics Changes - System-wide sales for Q4 2024 were approximately $142.6 million, a decrease of 3.3%. Excluding the impact of the 53rd operating week in 2023, system-wide sales increased 1.9% from the prior year [27] - Total revenue in Q4 was $116.6 million, down 7.3% year-over-year, driven by the impact of the 53rd week and refranchising. Excluding these items, total revenue was flat versus the prior year [28] - Adjusted net income for Q4 was $3.9 million, a $3.2 million increase versus the prior year period, with adjusted EBITDA of $9.7 million or 8.3% of total revenue [36] Business Line Data and Key Metrics Changes - Company-operated shop revenue was $112.3 million, down 8% year-over-year. Excluding the impact of the 53rd week and refranchising, revenue decreased only 0.9% [28][30] - Franchise revenue was $4.3 million in Q4, up 24% relative to the fourth quarter last year, driven by a 22% increase in franchise units [29] Market Data and Key Metrics Changes - Average weekly sales were approximately $25,230, with company-operated same-store sales up 0.3% in the quarter, attributed to a 2.2% increase in average check [31] - Digital business represented over 40% of total shop sales, an increase of approximately 100 basis points versus last year [14] Company Strategy and Development Direction - The company plans to drive comp sales growth through menu innovation and investments in consumer-facing digital assets, as well as data and analytics [6][7] - The company aims to grow and modernize its footprint through accelerated unit openings by franchisees and remodeling efforts [7][21] - The company is focused on prudent cost controls to achieve balanced growth while allowing incremental flow through to corporate earnings [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying strength and trends of the business, despite unusual weather impacts affecting Q1 [4][5] - For 2025, the company anticipates same-store sales growth of 1.5% to 2.5%, unit growth of at least 38 openings, and adjusted EBITDA of approximately $33 to $34 million [39] Other Important Information - The company repurchased approximately 48,000 shares of common stock for about $450,000 during Q4, totaling approximately 164,000 shares for the year [38] - The company plans to test four different levels of remodels this year to evaluate their return profiles before considering a larger-scale effort [25] Q&A Session Summary Question: Can you elaborate on the Q1 comp trends and the weather impact? - Management noted that severe weather in January affected sales, but underlying demand remains strong, suggesting that without weather impacts, same-store sales would have been positive [46][47] Question: How are the 2024 new units performing and what is the expected cadence of openings? - New units are performing in line with average shops, and the cadence of openings is expected to build throughout the year, similar to the previous year [51] Question: What is the impact of menu innovation on comp trends? - Management confirmed that menu innovation is driving traffic and they are excited about the pipeline of new menu items [60][62] Question: What is the outlook on inflation and commodity impacts? - Overall inflation is expected to be around 2.2% to mid-twos, with food inflation in the higher end of the 2% to 3% range [75][78] Question: What is the reception of the new franchisee incentive plan? - The reception has been positive, with franchisees expressing excitement about the incentives that support long-term planning and development [114]

分组1 - Potbelly reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.02 per share a year ago, resulting in an earnings surprise of 116.67% [1] - The company posted revenues of $116.63 million for the quarter ended December 2024, which was a slight miss compared to the Zacks Consensus Estimate, and a decrease from $125.75 million year-over-year [2] - Potbelly has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has increased approximately 23.7% since the beginning of the year, contrasting with a -0.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $114.8 million, and for the current fiscal year, it is $0.27 on revenues of $482.5 million [7] - The Zacks Industry Rank for Retail - Restaurants is in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Company Operations - As of December 29, 2024, Potbelly had 442 shops across 29 states and the District of Columbia, with 346 company-operated and 96 franchise-operated locations[18]. - The company employs over 5,000 team members, with a focus on maintaining a positive and inclusive workplace culture[36][37]. - The company’s shops average approximately 2,300 square feet, with a target size of 1,800 to 2,200 square feet for new openings, designed to create a unique customer experience[52]. - Approximately 63% of the company's domestic company-operated shops are located in Illinois, Texas, Michigan, Washington, D.C., and Virginia, with shops in the Chicago metropolitan area comprising about 27%[159]. - In 2024, the company opened five new company-operated shops and closed three, with a focus on franchise shop development expected to drive most growth in 2025[49]. Financial Performance - In fiscal year 2024, the system-wide average check per entree was approximately $11.85, slightly down from $11.87 in 2023[28]. - The average check per entree reflects the company's commitment to providing high-quality food at reasonable prices, contributing to customer value[28]. - The average investment for a new shop is approximately $750,000, with average unit volumes exceeding $1.3 million for fiscal year 2024, aiming for shop-level profit margins in the mid to high teens[50]. - The company has no plans to pay regular cash dividends for the foreseeable future, which may affect the return on investment for shareholders[184]. - Future decisions regarding dividends will depend on the company's financial condition, cash requirements, and other relevant factors[184]. Growth and Expansion - Potbelly's franchise program has 276 commitments for future openings, indicating a focus on expanding franchise growth[27]. - The company has increased its marketing resources, focusing on digital channels to drive traffic growth and brand awareness[57]. - The "Traffic-Driven Profitability" strategic plan includes five pillars aimed at driving profitable growth, focusing on customer experience and digital engagement[22][23]. - The company plans to continue emphasizing mobile and digital ordering, delivery, and catering, although these efforts may face unexpected operational challenges[166]. Supply Chain and Operations - The company sources over 90% of its food supplies through six primary distributors, with meats representing approximately 30% of product purchasing composition[62][64]. - The company relies on a limited number of suppliers, purchasing almost all bread from one supplier and over 90% of meat products from 10 suppliers, which poses a risk to operations if these suppliers fail to meet obligations[119]. - Shortages or interruptions in the supply of fresh food products could negatively impact the availability, quality, and cost of ingredients, affecting operating results[118]. - The company utilizes forward pricing arrangements with suppliers to manage commodity price risks, but these arrangements are generally short-term and may not provide sufficient protection against price fluctuations[116]. Risks and Challenges - The company faces significant competition in the fast-casual restaurant segment, competing on product quality, service, and price against established competitors[67]. - The company faces challenges in attracting and retaining qualified personnel, which could lead to increased labor costs and operational difficulties, potentially affecting financial performance[121]. - Increased commodity and energy costs could decrease shop-level profit margins, with potential impacts from inflation, supply shortages, and geopolitical events such as the Russia-Ukraine conflict[116]. - Negative publicity regarding food quality or public health concerns could materially harm the company's results of operations and brand reputation[162]. - The company is experiencing labor cost inflation, which could significantly increase operational costs and adversely affect financial performance[171]. Legal and Compliance - The company is subject to legal and compliance risks related to data privacy and protection, with potential costs arising from non-compliance or data breaches[127]. - The company is subject to extensive federal, state, and local laws, which can increase compliance costs and complexity[142]. - The company faces risks related to litigation, including class action lawsuits alleging violations of workplace and employment laws, which could result in substantial damages[148]. - The company is required to obtain and maintain various licenses and permits to operate, with failure to do so potentially harming business operations[147]. Corporate Governance and Financial Structure - The company has entered into an equity sales agreement with William Blair & Company, allowing for the issuance and sale of common stock with an aggregate offering price of up to $40 million[182]. - The company has provisions in its bylaws that may discourage or delay changes in control or management, potentially impacting stock price[180]. - Section 203 of the Delaware General Corporation Law may restrict certain business combinations for three years for stockholders owning 15% or more of the voting stock[181]. - Restrictions exist on stockholders' ability to fill board vacancies and call special meetings, which may limit shareholder influence[184]. - The company’s bylaws can only be amended by a two-thirds majority vote of the outstanding shares, which may deter hostile takeovers[184].

Company Information - The company is listed on the NASDAQ under the symbol PBPB[2] Financial Results - Potbelly Corporation issued a press release on January 13, 2025, providing preliminary results for Q4 2024[4] - The report does not include specific financial figures or performance metrics in the provided content[4]

Core Insights - Potbelly Corporation reported significant growth in Q4 2024, with GAAP EPS of $0.15, a 67% increase year-over-year, and adjusted EPS of $0.13, a remarkable 550% increase year-over-year [1] - The company achieved a net income increase of 69% year-over-year and an adjusted EBITDA growth of 30% year-over-year [1] - Potbelly opened eight new shops in Q4 and secured 29 additional franchise commitments, contributing to a total of 727 open and committed shops, representing an 18.8% increase from the previous year [1][9] Financial Performance - Q4 total revenues decreased by $9.1 million or 7.3% to $116.6 million compared to $125.7 million, primarily due to the impact of the previous year's 53-week fiscal period and refranchising activities [6] - For the full year 2024, total revenues decreased by $28.8 million or 5.9% to $462.6 million compared to $491.4 million [6] - Company-operated same-store sales in Q4 increased by 0.3%, a decline from the 6.3% increase in the prior year [6] Profitability Metrics - Adjusted net income for Q4 was $3.9 million compared to $0.7 million in the previous year, while adjusted diluted EPS was $0.13 compared to $0.02 [6] - Adjusted EBITDA for Q4 increased by 30% to $9.7 million compared to $7.5 million [6] - For the full year, adjusted net income was $9.2 million compared to $4.4 million, with adjusted diluted EPS rising to $0.30 from $0.15 [6] Growth Strategy - The company plans to continue driving comparable sales growth through menu innovation and investments in digital assets, with a target of opening at least 38 new shops in 2025 [5][7] - Potbelly aims to enhance its customer loyalty program and modernize its shop footprint to support long-term growth objectives [5] Share Repurchase Program - In Q4, Potbelly repurchased approximately 48,000 shares for about $0.5 million, with $18.6 million remaining under its share repurchase program authorized in May 2024 [10]