Potbelly to Post Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Potbelly Corporation (PBPB) is set to report its fourth-quarter 2024 results on March 6, with expectations of improved earnings per share but a decline in revenue compared to the previous year [1][3]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is 6 cents, reflecting a 200% increase from 2 cents in the same quarter last year [3]. - Revenue is projected at $116.9 million, indicating a 7$7.99 Everyday Value Combo, are expected to enhance customer engagement and repeat visits [5]. - The Potbelly Perks loyalty program is likely to have improved customer retention through personalized offers and rewards, contributing to increased traffic both in-store and online [6]. Expansion Plans - The company plans to open 9 to 11 new shops in the fourth quarter and a total of 24 to 26 shops throughout 2024, which is expected to support performance [7]. Market Challenges - Potbelly is facing a challenging consumer environment, with economic pressures potentially impacting discretionary spending and same-store sales growth [8]. - Rising operational costs, including labor and occupancy expenses, may affect shop-level profitability [8]. Sales Growth Projections - The company anticipates same-store sales growth to range between negative 2.5% and negative 0.5% for the fourth quarter, with adjusted EBITDA projected between $7 million and$8 million [9]. Earnings Prediction Model - The current model does not predict an earnings beat for Potbelly, as the Earnings ESP stands at 0.00% [10]. - Potbelly holds a Zacks Rank of 2, indicating a "Buy" rating [11].