Potbelly (PBPB) closed the last trading session at $10.37, gaining 14.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $15.33 indicates a 47.8% upside potential.The average comprises three short-term price targets ranging from a low of $14 to a high of $16, with a standard deviation of $1.15. While the lowest estimate indicates an increase of 35% from the current price level, the ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

Potbelly Corporation (PBPB) provided an update on its business for the fourth quarter of fiscal 2024. Following the announcement, shares of the company moved up 14.7% during trading hours yesterday.PBPB Q4 Preliminary ResultsIn the fourth quarter of fiscal 2024, Potbelly’s prelim results reflected same-store sales growth of 0.2-0.3%. Previously, the company anticipated comps to fall in the range of 0.5-2.5%. Potbelly's emphasis on its product innovation and digital marketing contributed positively.During th ...

Company to host a fireside chat and investor meetings at the 27th Annual ICR Conference Company expects to deliver positive fourth quarter same store sales growth 38 new shop sites in various stages of development for opening in 2025 CHICAGO, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB), (“Potbelly” or the “Company”) the iconic neighborhood sandwich shop concept, today reported preliminary estimated results for the fourth fiscal quarter ended December 29, 2024. Fourth Quarter 202 ...

Potbelly Corporation (PBPB) shares have risen 13.8% in the past three months against the industry’s decline of 1%. The stock has also outpaced the S&P 500’s growth of 5.8%. The company has been benefiting from its 5-pillar strategic plan, robust digitalization and expansion initiatives.On Tuesday, the stock closed at $9.40, 34.5% below its 52-week high but 49.7% above its 52-week low. In the past three months, PBPB outperformed industry players like Chipotle Mexican Grill, Inc.’s (CMG) 5.6% rise, Restaurant ...

Group 1 - Potbelly (NASDAQ: PBPB) has shown significant improvement since Bob Wright became CEO in mid-2020, indicating a positive turnaround for the sandwich shop chain [1] - The company is focused on building its brand and enhancing its market position within the restaurant industry [1] - The analysis is conducted by a specialized firm that covers various segments of the restaurant market, employing advanced analytical models and valuation techniques [1] Group 2 - The firm aims to provide detailed insights and actionable strategies to help investors make informed decisions regarding restaurant stocks [1] - The coverage includes multiple segments such as QSR, fast casual, casual dining, fine dining, and family dining, showcasing a comprehensive approach to restaurant stock analysis [1] - The founder has a strong background in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership, enhancing the credibility of the analysis [1]

Financial Data and Key Metrics Changes - System-wide sales were approximately $139.2 million, an increase of 1%, driven by system-wide unit growth [29] - Revenues in the third quarter were $115.1 million, with company-operated shop revenue of $110.8 million, lower year-over-year due to last year's refranchising efforts [29] - Franchise revenue was $4.4 million, up 79% relative to the third quarter last year, driven by a 30% increase in franchised units [29] - Adjusted EBITDA was $8.7 million or 7.5% of total revenue, a 19% growth year-over-year [34] - Net income for the quarter was $3.7 million, with adjusted net income of $2.5 million, a $1.4 million increase versus the prior year [34] Business Line Data and Key Metrics Changes - Company-operated same-store sales were down 1.8%, with a 3.8% decrease in traffic and a 2% increase in average check [42] - Food, beverage, and packaging costs were 26.6% of shop sales, a 120 basis point improvement versus the prior year [31] - Labor expenses were 29.1% of sales, a 20 basis point increase due to employee group insurance costs [31] - General and administrative expenses were 7.6%, a decrease of 100 basis points versus the prior year [33] Market Data and Key Metrics Changes - Digital business represented over 38% of total shop sales, an increase of approximately 100 basis points versus last year [21] - The Potbelly Perks loyalty program saw increased frequency across all customer cohorts, indicating strong engagement [23] Company Strategy and Development Direction - The company is focused on a 5-pillar strategic plan emphasizing craveable quality food, digital-driven awareness, and franchise-focused development [7][10] - The company opened 8 new shops in the third quarter, with expectations to open 9 to 11 additional shops in Q4, totaling 24 to 26 shops for the year [26][27] - The company aims to reach 2,000 units in the U.S. and anticipates continued growth through 2025 [28] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging consumer environment but emphasized a focus on controllable factors for long-term sustainable growth [8] - The company expects Q4 same-store sales growth to range from negative 2.5% to negative 0.5% and adjusted EBITDA between $7 million and $8 million [36] - Management expressed confidence in the growth trajectory due to signed leases and ongoing franchise recruitment efforts [65] Other Important Information - The company has completed the system-wide rollout of Potbelly Craft Refreshers, which are organic and non-GMO beverages [20] - The company purchased approximately 29,000 shares of common stock for about $230,000 as part of its long-term capital allocation strategy [35] Q&A Session Summary Question: Can you provide more detail on same-store sales trends and traffic? - Management noted that the quarter improved, with early challenges from holidays and weather impacting performance, but momentum has carried into Q4 [41] Question: What is the outlook for unit development in 2025? - Management indicated that they have signed leases for more locations than they will open this year, suggesting strong growth momentum for 2025 [46][65] Question: How is the Perks program performing since its reconfiguration? - Management reported that the revamped program continues to perform well, with increased membership and frequency across all cohorts [67] Question: What are the expectations for marketing spend heading into 2025? - Management plans to continue escalating marketing spend, currently around 3%, while ensuring effective testing of marketing initiatives [75]

CHICAGO, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB), the iconic neighborhood sandwich shop, today announced the completion of six new multi-unit development agreements. The commitments, which include an expanded partnership with Potbelly founder Bryant Keil, will bring new Potbelly shops to markets in six states across the country including Arizona, Illinois, Missouri, North Carolina, Texas and Virginia, with new and existing franchisee partners. These deals, all signed since July ...

Potbelly (PBPB) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 60%. A quarter ago, it was expected that this sandwich restaurant operator would post earnings of $0.05 per share when it actually produced earnings of $0.08, delivering a surprise of 60%.Over the last four quarters, the ...

Shop Operations - As of September 29, 2024, the total number of shops is 435, comprising 345 company-operated and 90 franchise-operated locations[75]. - Comparable store sales for the quarters ended September 29, 2024, and September 24, 2023, had an average of 341 and 360 shops, respectively, indicating a focus on existing shop performance[77]. - The company experienced a net decrease of 20 company-operated shops due to refranchising, while franchise-operated shops increased by 20[75]. - The average start-up period for new shops is 10 to 13 weeks, during which initial sales volumes are typically higher[78]. - Franchise-operated shop openings are expected to increase as franchisees fulfill development commitments, impacting franchise revenue positively[80]. Financial Performance - Total revenues decreased by $19.7 million, or 5.4%, to $345.97 million for the year to date ended September 29, 2024, compared to $365.66 million for the year to date ended September 24, 2023[102]. - Sandwich shop sales decreased by $7.6 million, or 6.4%, to $110.8 million for the quarter ended September 29, 2024, compared to $118.3 million for the quarter ended September 24, 2023[85]. - Sandwich shop sales decreased by $26.1 million, or 7.3%, to $333.9 million for the year to date ended September 29, 2024, from $360.0 million for the same period in 2023, primarily due to refranchising of 34 company-operated shops[106]. - Net income attributable to Potbelly Corporation increased by $2.2 million, or 149.8%, to $3.7 million during the quarter ended September 29, 2024[99]. - Net income increased significantly by $33.5 million, or 1185.9%, to $36.3 million for the year to date ended September 29, 2024, compared to $2.8 million in the prior year[104]. Cost Management - Food, beverage, and packaging costs decreased by $3.4 million, or 10.4%, to $29.5 million during the quarter ended September 29, 2024[87]. - Labor and related expenses decreased by $1.9 million, or 5.6%, to $32.3 million during the quarter ended September 29, 2024[88]. - Occupancy expenses decreased by $0.9 million, or 6.7%, to $11.8 million during the quarter ended September 29, 2024[89]. - Other operating expenses decreased by $1.0 million, or 4.8%, to $20.3 million during the quarter ended September 29, 2024[90]. - Food, beverage, and packaging costs decreased by $10.4 million, or 10.3%, to $90.0 million, representing 27.0% of sandwich shop sales for the year to date ended September 29, 2024, down from 27.9% in the prior year[108]. - Labor and related expenses decreased by $11.7 million, or 10.8%, to $96.8 million, accounting for 29.0% of sandwich shop sales, down from 30.2%[109]. - Occupancy expenses decreased by $3.0 million, or 7.6%, to $36.1 million, remaining consistent at 10.8% of sandwich shop sales[110]. Strategic Initiatives - The company has implemented a "Traffic-Driven Profitability" Five-Pillar strategic plan to drive growth, including initiatives for quality food, customer experience, and digital engagement[73]. - The Franchise Growth Acceleration Initiative aims to increase franchise units through multi-unit agreements and refranchising, with cash consideration for current shops and development fees[74]. Revenue Streams - Franchise royalties, fees, and rental income increased by $1.9 million, or 79.2%, to $4.4 million during the quarter ended September 29, 2024, from $2.4 million during the quarter ended September 24, 2023[86]. - Revenue from franchise royalties, fees, and rental income increased by $6.4 million, or 113.4%, to $12.1 million during the year to date ended September 29, 2024, driven by an increase in the number of franchised shops[107]. Cash Flow and Financing - Cash balance at the end of the quarter was $11.9 million, with total liquidity of $38.2 million, compared to $31.7 million and $30.9 million, respectively, at the end of the previous year[127]. - Net cash provided by operating activities decreased to $13.06 million for the year to date ended September 29, 2024, from $14.50 million in the prior year[129]. - Net cash used in investing activities increased to $13.00 million for the year to date ended September 29, 2024, from $10.89 million in the previous year, driven by higher capital expenditures[130]. - Net cash used in financing activities decreased to $22.65 million for the year to date ended September 29, 2024, compared to net cash provided of $12.46 million in the prior year, primarily due to repayment of the Term Loan[131]. - The company entered into a new Revolving Facility with an aggregate commitment of $30 million, which expires on February 7, 2027[132]. Stock and Debt Management - The stock repurchase program authorized on May 7, 2024, allows for up to $20 million in repurchases over the next three years, with 29,113 shares repurchased for $0.2 million in the latest quarter[137]. - The company recognized a loss on extinguishment of debt of $2.4 million for the year to date ended September 29, 2024, following the repayment of the Term Loan[136]. - Interest expense decreased to $0.7 million from $2.5 million, reflecting lower interest rates and reduced average borrowings[119]. Accounting and Risk Management - The company's financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates that could differ from actual results, with no significant changes in critical accounting estimates since the last annual report[140]. - Market risk exposures have not changed materially since December 31, 2023, as noted in the company's Annual Report[142].