PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201%2E%20Financial%20Statements) The company's Q1 2025 financials show increased assets and equity, a significant profitability turnaround to $85 thousand net income, and $8.6 million in operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, total assets increased slightly to $265.8 million, driven by higher cash, with total liabilities at $207.4 million and equity at $58.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total current assets** | $36,500 | $33,201 | | Cash and cash equivalents | $14,756 | $11,663 | | **Total assets** | **$265,757** | **$263,146** | | **Total current liabilities** | $68,391 | $65,233 | | Long-term debt, net | $4,500 | $4,000 | | **Total liabilities** | **$207,404** | **$205,198** | | **Total equity** | **$58,353** | **$57,948** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues increased 2.3% to $113.7 million, resulting in net income of $85 thousand, a significant improvement from a $2.7 million net loss in Q1 2024 due to the absence of a $2.4 million debt extinguishment loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | | :--- | :--- | :--- | | Total revenues | $113,681 | $111,153 | | Income from operations | $250 | $118 | | Loss on extinguishment of debt | $0 | $2,376 | | Net income (loss) | $85 | $(2,673) | | Net loss attributable to Potbelly | $(62) | $(2,767) | | Diluted net loss per share | $(0.00) | $(0.09) | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity increased from $57.9 million at the end of fiscal 2024 to $58.4 million at the end of Q1 2025, primarily driven by stock-based compensation and warrant exercises, partially offset by net loss and common stock repurchases - During Q1 2025, the company repurchased **117 thousand shares** of common stock for **$1.1 million**[12](index=12&type=chunk) - Total equity increased by approximately **$0.4 million** during the quarter, from **$57,948 thousand** to **$58,353 thousand**[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $8.6 million in Q1 2025 from $0.7 million in Q1 2024, while net cash used in investing activities rose to $4.9 million, and net cash used in financing activities decreased drastically to $0.6 million Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 (ended Mar 30) | Q1 2024 (ended Mar 31) | | :--- | :--- | :--- | | 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)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies and provide further information on financial statement items, including its structure with 341 company-operated and 103 franchised shops, debt refinancing, ongoing refranchising activities, and the settlement of a class-action lawsuit for $1.8 million - As of March 30, 2025, Potbelly owned and operated **341 shops** in the United States, with franchisees operating an additional **103 shops**[16](index=16&type=chunk) - In February 2024, the company replaced its **$25 million Term Loan** with a new **$30 million Revolving Facility**, resulting in a **$2.4 million loss** on debt extinguishment in Q1 2024[45](index=45&type=chunk)[54](index=54&type=chunk) - Under the Franchise Growth Acceleration Initiative, **4 company-operated shops** were sold to franchisees during Q1 2025[55](index=55&type=chunk) - A new **$20.0 million stock repurchase program** was authorized on May 7, 2024, under which the company repurchased **117,476 shares** for **$1.1 million** in Q1 2025[58](index=58&type=chunk) - The company settled a class action lawsuit related to the Washington Equal Pay and Opportunities Act for **$1.8 million**, which was accrued in 2024 and finalized in Q1 2025[72](index=72&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 2.3% revenue growth in Q1 2025 to a 0.9% increase in same-store sales and strong franchise revenue growth of 30.8%, highlighting its "Traffic-Driven Profitability" strategy and Franchise Growth Acceleration Initiative as key drivers, with shop-level profit margin improving slightly to 13.7% and Adjusted EBITDA at $5.5 million, maintaining strong liquidity [Business and Strategy](index=18&type=section&id=Business%20and%20Strategy) Potbelly is focused on its "Traffic-Driven Profitability" Five-Pillar strategic plan to drive growth, with a key component being the Franchise Growth Acceleration Initiative aimed at expanding the franchise footprint through multi-unit development and refranchising, resulting in a system of 341 company-operated and 103 franchise-operated shops as of March 30, 2025 - The company's strategy is centered on the "Traffic-Driven Profitability" Five-Pillar plan, which includes: Craveable-Quality Food, People Creating Good Vibes, Customer Experiences, Digitally-Driven Traffic, and Franchise-Focused Development[78](index=78&type=chunk)[79](index=79&type=chunk) - The Franchise Growth Acceleration Initiative, announced in March 2022, is a key strategy to grow domestic franchise units through multi-unit development agreements and refranchising[81](index=81&type=chunk) Shop Count Roll-Forward | | Company Operated | Franchise Operated | Total Company | | :--- | :--- | :--- | :--- | | Shops as of Dec 29, 2024 | 346 | 96 | 442 | | Shops opened | 1 | 3 | 4 | | Shops closed | (2) | — | (2) | | Shops refranchised | (4) | 4 | — | | **Shops as of Mar 30, 2025** | **341** | **103** | **444** | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Total revenues for Q1 2025 increased 2.3% to $113.7 million, driven by a 1.3% rise in sandwich shop sales and a 30.8% increase in franchise-related income, with improved food costs as a percentage of sales due to lower protein costs, and net income significantly benefiting from the absence of a $2.4 million loss on debt extinguishment from the prior year Key Performance Indicators - Q1 2025 vs Q1 2024 | Indicator | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Same store sales | 0.9% | (0.2)% | 1.1% | | System-wide sales (in thousands) | $140,661 | $134,188 | $6,473 | | Average unit volume, weekly | $24,550 | $24,250 | $300 | - Franchise royalties, fees and rental income grew **30.8%** to **$4.7 million**, driven by new franchise-operated shop openings[94](index=94&type=chunk) - Food, beverage, and packaging costs decreased to **26.1%** of sandwich shop sales from **27.2%** in the prior year, mainly due to lower protein costs and reduced inflation[95](index=95&type=chunk) - General and administrative expenses rose **7.1%** to **$12.4 million**, driven by increases in payroll, consulting, and technology costs[99](index=99&type=chunk) - The company recorded no loss on extinguishment of debt in Q1 2025, compared to a **$2.4 million loss** in Q1 2024 related to the termination of its Term Loan[104](index=104&type=chunk) [Non-GAAP Financial Measures](index=24&type=section&id=Non-GAAP%20Financial%20Measures) The company reported a shop-level profit margin of 13.7% for Q1 2025, a slight improvement from 13.5% in Q1 2024, while Adjusted EBITDA decreased slightly to $5.5 million from $5.7 million in the prior-year quarter, with reconciliation from net loss including adjustments for depreciation, stock-based compensation, and other non-recurring items Shop-Level Profit Margin Reconciliation (in thousands) | | 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%** | Adjusted EBITDA Reconciliation (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to Potbelly | $(62) | $(2,767) | | Depreciation expense | 3,721 | 3,011 | | Interest expense | 167 | 364 | | Income tax (benefit) expense | (2) | 51 | | **EBITDA** | **$3,824** | **$659** | | *Plus Other Adjustments* | ... | ... | | **Adjusted EBITDA** | **$5,522** | **$5,680** | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2025 with a cash balance of $15.6 million and total liquidity of $40.3 million, including availability under its $30 million Revolving Facility, which management believes is sufficient for at least the next twelve months, alongside a significantly improved operating cash flow and details on its new $20 million stock repurchase program - At the end of Q1 2025, the company had a cash balance of **$15.6 million** and total liquidity of **$40.3 million** (cash plus available credit)[117](index=117&type=chunk) - Net cash from operating activities increased to **$8.6 million** in Q1 2025 from **$0.7 million** in Q1 2024, mainly due to higher incentive payments made in 2024 and favorable working capital changes[119](index=119&type=chunk) - In February 2024, the company entered into a new **$30 million Revolving Credit Facility**, which expires in February 2027, and used it to repay its previous Term Loan[122](index=122&type=chunk) - Under the 2024 Repurchase Program, the company repurchased **117,476 shares** for **$1.1 million** in Q1 2025[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposures to market risks have not materially changed since the fiscal year ended December 29, 2024 - There have been no material changes in the company's market risk exposures since December 29, 2024[139](index=139&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 30, 2025, with no material changes to internal control over financial reporting occurring during the quarter - The CEO and CFO concluded that as of March 30, 2025, the company's disclosure controls and procedures were effective[140](index=140&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[141](index=141&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201%2E%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12 of the Condensed Consolidated Financial Statements, which discusses the settlement of a class action lawsuit - Details on legal proceedings are provided in Note 12 to the Condensed Consolidated Financial Statements[142](index=142&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A%2E%20Risk%20Factors) There have been no material changes to the company's risk factors as previously reported in the Annual Report on Form 10-K for the fiscal year ended December 29, 2024 - No material changes to risk factors were reported since the last Annual Report on Form 10-K[143](index=143&type=chunk) [Unregistered Sale of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202%2E%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, Potbelly repurchased a total of 118 thousand shares under the $20.0 million stock repurchase program authorized on May 7, 2024, with approximately $17.5 million remaining available for future repurchases Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Value for Future Purchases ($ thousands) | | :--- | :--- | :--- | :--- | | Dec 30, 2025 - Jan 26, 2025 | 52,000 | $10.86 | $18,139 | | Jan 27, 2025 - Feb 23, 2025 | 12,000 | $12.44 | $18,025 | | Feb 24, 2025 - Mar 30, 2025 | 54,000 | $12.40 | $17,504 | | **Total** | **118,000** | | | - On May 7, 2024, the Board of Directors authorized a new stock repurchase program for up to **$20.0 million** of outstanding common stock, replacing the 2018 program[144](index=144&type=chunk) [Other Information](index=30&type=section&id=Item%205%2E%20Other%20Information) The company reported that on March 1, 2025, it provided notice to terminate the Cooperation Agreement with Intrinsic Investment Holdings, LLC, and its affiliates, effective March 6, 2025, incurring no penalties or fees - The Cooperation Agreement with Intrinsic Investment Holdings, LLC, which had appointed a director to the board, was terminated by the company effective March 6, 2025, with no resulting penalties[148](index=148&type=chunk)[149](index=149&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading agreement during the quarter[147](index=147&type=chunk) [Exhibits](index=32&type=section&id=Item%206%2E%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL data files

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 ...