Q1 2025 Financial Performance - Systemwide sales increased to $140.7 million, up 5% year-over-year[9] - Total revenue reached $109.0 million, a 1% increase compared to the previous year[9] - Franchise royalties, fees, and rent income grew significantly to $4.7 million, representing a 31% increase[9] - Same-store sales increased by 0.9%[9] - Adjusted EBITDA decreased by 3% to $5.5 million, negatively impacted by the absence of a $1.1 million legal settlement benefit from the previous year[9, 10] Shop-Level Profitability - Shop-level profit margin increased by 110 basis points to 13.7%[26, 43] - Average Weekly Sales (AWS) for company-operated shops was $24,550[24] Franchise Growth and Expansion - The Franchise Growth Acceleration (FGA) Initiative shows progress with 766 open and committed shops[34] - Additional franchise commitments increased by 19% year-over-year[35] Financial Outlook - Q2 2025 guidance projects same-store sales growth of 1.5% to 2.5% and adjusted EBITDA between $8.25 million and $9.75 million[38] - 2025 guidance anticipates at least 38 new shop openings and adjusted EBITDA between $33 million and $34 million[39]

[Potbelly Corporation Reports Results for First Fiscal Quarter 2025](index=1&type=section&id=Potbelly%20Corporation%20Reports%20Results%20for%20First%20Fiscal%20Quarter%202025) [Performance Overview and Outlook](index=1&type=section&id=Performance%20Overview%20and%20Outlook) The company reported strong Q1 2025 results exceeding expectations and reiterated positive full-year guidance Q1 2025 Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | System-wide Sales Growth | 4.8% | N/A | N/A | | Total Revenues | $113.7 million | $111.2 million | +2.3% | | Company-operated Same-store Sales | 0.9% | (0.2)% | +1.1 ppt | | Average Weekly Sales (AWS) | $24,550 | $24,250 | +1.2% | | GAAP Net Loss | $(62) thousand | $(2.8) million | +97.8% | | GAAP Diluted EPS | $(0.00) | $(0.09) | +$0.09 | | Adjusted EBITDA | $5.5 million | $5.7 million | -2.8% | - CEO Bob Wright highlighted the company's strong start to 2025, citing robust profitability and significant progress in franchise development, declaring Potbelly a **"growth company again"**[3](index=3&type=chunk) Financial Outlook for Q2 2025 and Full Year 2025 | Guidance Metric | Q2 2025 | Full Year 2025 | | :--- | :--- | :--- | | Same Store Sales % Growth | 1.5% to 2.5% | 1.5% to 2.5% | | Adjusted EBITDA | $8.25M to $9.75M | $33M to $34M | | New Unit Growth | N/A | At least 38 shops | [Business Development and Capital Allocation](index=2&type=section&id=Business%20Development%20and%20Capital%20Allocation) The company advanced its franchise growth strategy with new shop openings and commitments while returning capital to shareholders - The company opened four new shops in Q1, including three franchise shops operated by three different partners across two states[6](index=6&type=chunk) - Potbelly signed 40 new franchise shop commitments during the quarter, increasing the total number of open and committed shops to **766** as of March 30, 2025[6](index=6&type=chunk) - Under its share repurchase program, the company bought back about 117,000 shares for approximately **$1.1 million** in Q1, with **$17.5 million** remaining available for future repurchases[7](index=7&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the unaudited Q1 2025 consolidated financial statements, detailing financial performance, position, and cash flows [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 revenues grew 2.3% to $113.7 million, and the company significantly narrowed its net loss to just $62 thousand Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $113,681 | $111,153 | | Income from Operations | $250 | $118 | | Net Loss Attributable to Potbelly | $(62) | $(2,767) | | Diluted Net Loss Per Share | $(0.00) | $(0.09) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet remained stable as of March 30, 2025, with total assets at $265.8 million and a slight increase in cash Balance Sheet Summary (in thousands) | Account | March 30, 2025 | Dec 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,756 | $11,663 | | Total current assets | $36,500 | $33,201 | | Total assets | $265,757 | $263,146 | | Total current liabilities | $68,391 | $65,233 | | Total liabilities | $207,404 | $205,198 | | Total equity | $58,353 | $57,948 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated strong operating cash flow of $8.6 million in Q1 2025, a significant improvement from the prior year Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,629 | $693 | | Net cash used in investing activities | $(4,925) | $(3,736) | | Net cash used in financing activities | $(611) | $(18,022) | | **Net change in cash** | **$3,093** | **$(21,065)** | [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company utilizes non-GAAP metrics like Adjusted EBITDA and Shop-level Profit to provide a clearer view of underlying business performance - Management uses non-GAAP measures like Adjusted EBITDA, adjusted net income, and shop-level profit to evaluate performance, believing they provide greater transparency and comparability[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to Potbelly Corporation | $(62) | $(2,767) | | Depreciation expense | $3,721 | $3,011 | | Interest expense, net | $167 | $364 | | Income tax (benefit) expense | $(2) | $51 | | **EBITDA** | **$3,824** | **$659** | | Stock-based compensation & other adjustments | $1,698 | $5,021 | | **Adjusted EBITDA** | **$5,522** | **$5,680** | Shop-Level Profit Calculation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from operations | $250 | $118 | | *Plus/Less Adjustments* | ... | ... | | **Shop-level profit** | **$14,936** | **$14,511** | | Sandwich shop sales, net | $109,002 | $107,577 | | **Shop-level profit margin** | **13.7%** | **13.5%** | [Selected Operating Data](index=12&type=section&id=Selected%20Operating%20Data) Q1 2025 operating metrics showed positive momentum with a 0.9% increase in comparable store sales and a net expansion of the shop footprint Key Operating Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Company-operated comparable store sales | 0.9% | (0.2)% | | System-wide sales | $140,661 | $134,188 | Shop Count Activity (Q1 2025) | Shop Type | Beginning of Period | Openings | Sold to Franchise | Closures | End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | | Company-operated | 346 | 1 | (4) | (2) | 341 | | Franchised | 96 | 3 | 4 | 0 | 103 | | **System-wide** | **442** | **4** | **N/A** | **(2)** | **444** |

Core Insights - Potbelly Corporation reported a system-wide sales growth of 4.8% in the first quarter of 2025, with positive same-store sales growth [1][2] - The company opened four new shops and secured 40 additional franchise commitments during the same period [1][6] - Potbelly reiterated its full-year guidance and introduced a second-quarter guidance of 1.5% to 2.5% same-store sales growth [1][4] Financial Performance - Total revenues increased by 2.3% to $113.7 million compared to $111.2 million in the previous year [5][20] - Average Weekly Sales (AWS) rose by 1.2% to $24,550 from $24,250 [5] - Company-operated same-store sales increased by 0.9% [5][29] Profitability Metrics - GAAP net loss attributable to Potbelly Corporation was $62 thousand, a significant improvement from a net loss of $2.8 million in the prior year [5][20] - Adjusted EBITDA decreased by 2.8% to $5.5 million compared to $5.7 million, impacted by a prior year settlement payment [5][26] - Adjusted net income attributable to Potbelly Corporation was $43 thousand, down from $0.2 million [5][26] Development and Growth Strategy - The company opened four Potbelly shops, including three franchise locations, and signed 40 new franchise commitments, bringing the total to 766 shops as of March 30, 2025 [6][11] - Potbelly aims to open at least 38 new units in 2025 [4][6] Shareholder Returns - During the first quarter, Potbelly repurchased approximately 117 thousand shares for about $1.1 million, with $17.5 million remaining under its share repurchase program [7][8]

Industry Overview - The restaurant industry is navigating a dynamic environment influenced by digital innovation, changing consumer expectations, and economic pressures [1] - Companies are facing tariff-related uncertainties but are likely benefiting from alternative raw material solutions and compelling product offerings [1] Earnings Expectations - Total earnings for the Zacks Retail-Wholesale sector are expected to rise by 1.6% year over year, with revenues projected to increase by 4% year over year [5] - Potbelly Corporation, Dine Brands Global, Inc., and Bloomin' Brands, Inc. are set to report their first-quarter earnings on May 7 [1][7] Company-Specific Insights Potbelly Corporation - Potbelly's first-quarter performance is expected to benefit from digital momentum and the relaunch of its Perks loyalty program, along with menu innovation [8] - The Zacks Consensus Estimate for Potbelly's first-quarter 2025 revenues is $112.6 million, indicating a growth of 1.3% from the previous year, while EPS is expected to show a loss of 2 cents, a deterioration of 300% [10][11] Dine Brands Global, Inc. - Dine Brands' performance is likely to be supported by operational improvements and brand revitalization efforts, including the Applebee's Looking Good reimage program [12] - The Zacks Consensus Estimate for Dine Brands' first-quarter 2025 revenues is $215.3 million, indicating a growth of 4.4%, while EPS is expected to be $1.18, a decline of 11.3% from the previous year [13] Bloomin' Brands, Inc. - Bloomin' Brands is expected to benefit from off-premise channels, remodeling efforts, and technology upgrades [14] - The Zacks Consensus Estimate for Bloomin' Brands' first-quarter 2025 revenues is $1.04 billion, indicating a deterioration of 13.3%, with EPS expected to be 57 cents, a decline of 18.6% [16]

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].

Core Viewpoint - Potbelly Corporation (PBPB) has experienced a significant stock decline of 20.3% over the past month, attributed to macroeconomic challenges, increased competition, and high operating costs [1][13]. Company Performance - PBPB's stock closed at $9.78, which is 27% below its 52-week high of $13.48 and significantly above its 52-week low of $6.28 [3]. - The company has underperformed compared to industry peers such as Chipotle Mexican Grill, Restaurant Brands International, and El Pollo Loco [3]. Competitive Landscape - Potbelly faces intensified competition in the fast-casual segment, particularly in the hot sandwich market, which has been exacerbated by adverse weather conditions and consumer spending pressures [2][13]. Strategic Initiatives - The company is implementing a five-pillar strategy aimed at driving same-store sales growth, expanding through franchising, enhancing digital capabilities, optimizing operations, and strengthening brand loyalty [6][14]. - Potbelly opened 23 new shops in 2024 and plans to open 38 more in 2025, focusing on franchise development while also expanding company-operated locations [7][9]. Digital Growth - Digital sales accounted for over 40% of total shop revenues in the fourth quarter, reflecting a year-over-year increase, with the Potbelly Perks loyalty program being a key growth driver [11][12]. - Investments are being made to enhance consumer-facing digital platforms and strengthen data analytics capabilities to improve customer engagement and marketing strategies [12]. Menu Innovation - The company has introduced new protein options, sauces, and beverages, which have been positively received, aiding in customer engagement and differentiation in a competitive market [10].

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 ...

In Millions Q4 2022 FY 2022 • Revenues – represents net company-operated sandwich shop sales and our franchise royalties and fees. Net company-operated shop sales consist of food and beverage sales, net of promotional allowances and employee meals. Franchise royalties and fees consist of an initial franchise fee, a franchise development agreement fee and royalty income from the franchisee. • Average Unit Volumes (AUV) – represents the average sales of all company-operated shops which reported sales during t ...

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]