Potbelly Corporation (PBPB) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Potbelly (PBPB) has shown strong stock performance, with a 33.2% increase over the past month and an 80.3% gain since the start of the year, outperforming the Zacks Retail-Wholesale sector and the Zacks Retail - Restaurants industry [1][2]. Financial Performance - Potbelly has consistently exceeded earnings expectations, reporting an EPS of $0.09 against a consensus estimate of $0.08 in its last earnings report [2]. - For the current fiscal year, Potbelly is projected to achieve earnings of $0.26 per share on revenues of $481.9 million, reflecting a -13.33% change in EPS and a 4.17% change in revenues [3]. - The next fiscal year forecasts earnings of $0.30 per share on revenues of $502.5 million, indicating a year-over-year change of 15.38% in EPS and 4.27% in revenues [3]. Valuation Metrics - Potbelly's stock trades at a valuation of 65.3X current fiscal year EPS estimates, significantly higher than the peer industry average of 19.9X [6]. - On a trailing cash flow basis, the stock trades at 23X compared to the peer group's average of 11.1X, suggesting it is not positioned in the top tier from a value perspective [6]. Zacks Rank and Style Scores - Potbelly holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend [7]. - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B [6][7].