Core Insights - The Joint Corp. has elected Christopher M. Grandpre to its board of directors to support long-term growth objectives including new clinic openings, system-wide sales, comparable sales, and Adjusted EBITDA [1][2] Company Overview - The Joint Corp. is the largest provider of chiropractic care in the U.S. through The Joint Chiropractic network, focusing on making chiropractic care accessible and affordable without the need for insurance [5] - The company operates over 950 locations nationwide and has more than 14 million patient visits annually, positioning itself as a leader in the chiropractic industry [5] Leadership and Expertise - Christopher M. Grandpre brings over 30 years of experience in multi-branded franchise companies and M&A investment banking, having served as chairman of Empower Brands, which has sales exceeding $1.5 billion [3][4] - Grandpre's background includes founding Outdoor Living Brands and holding executive roles at various financial institutions, providing a unique perspective to The Joint's leadership [3][4] Business Model and Strategy - The Joint Corp. revolutionized chiropractic care access with its retail healthcare business model introduced in 2010, focusing on convenience and affordability for patients [5] - The company is recognized in various industry rankings, including Franchise Times' "Top 400" and Entrepreneur's "Franchise 500," highlighting its growth and innovation in the franchise sector [5]

Financial Data and Key Metrics Changes - System wide sales for Q1 2025 reached $225.9 million, a 2.1% increase from $221.4 million in Q1 2024, driven by the shift in the Easter holiday and payment timing [23][6] - Same store sales grew by 70 basis points, but adjusting for the Easter shift, it would have been approximately flat [23][6] - Adjusted EBITDA increased by 7.2% to $18.8 million from $17.5 million in the prior year, with an adjusted EBITDA margin rising to 36.5% from 33.7% [25][26] - Adjusted net income rose by 10.3% to $9.5 million from $8.6 million in the previous year [26] Business Line Data and Key Metrics Changes - Total revenue decreased by approximately $400,000 or 90 basis points to $51.4 million, primarily due to lower retail and wholesale product revenue [24] - SG&A expenses increased by $1.9 million to $15.3 million, driven by higher stock-based compensation and executive severance costs [25] - Advertising expenses decreased by $1.4 million due to the timing of spend within the fiscal year [25] Market Data and Key Metrics Changes - The company ended Q1 with 1,062 centers, representing a 1% growth year over year, with five gross openings and ten closures resulting in five net center closures [22] - The company expects 10 to 12 gross openings and 40 to 60 center closures for the year, leading to 28 to 50 net center closures [29] Company Strategy and Development Direction - The company aims to focus on driving sales, improving four wall profitability, and reigniting unit growth as critical components for revitalizing long-term growth [10][19] - A data-rich digital-first marketing engine is being developed to enhance guest engagement and drive new guest acquisition [11][12] - The company is implementing a more sophisticated development approach focused on thoughtful, profitable expansion, identifying underpenetrated trade areas for future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain consumer backdrop and supply chain environment but emphasizes strong fundamentals and proactive management [7][6] - The outlook for 2025 is reiterated, assuming a stable consumer environment, with expectations for system wide sales between $940 million and $960 million [28][30] - Management is confident in their ability to manage tariff impacts and maintain guidance despite macroeconomic challenges [31][34] Other Important Information - The company has made substantial progress in assembling a team of seasoned leaders to execute strategic priorities for 2025 and beyond [19][20] - The company is actively exploring alternative sourcing options to mitigate tariff impacts on product costs [31][44] Q&A Session Summary Question: Can you talk about the game plan going forward and the potential tariff impact? - Management is pleased with progress and sees stability in the business, with no material changes in promotional activity expected [39][41] - They are actively exploring all options to manage tariff exposure, including alternative sourcing [44] Question: What are you hearing from franchisees regarding center closures? - Franchisees are passionate about the brand, but the past few years have been tough, leading to underperforming centers [48][50] Question: Can you provide insight into the cost to build and return to net unit growth? - The increase in capital investment is attributed to inflationary pressures, with a focus on optimizing costs and operations [57] Question: What are the key themes for the upcoming franchise convention? - The convention will cover a full situation assessment, opportunities, and a plan to maximize potential [60] Question: How do you prioritize marketing, franchisee execution, and other factors? - The primary focus is on the marketing funnel and franchisee execution, followed by waxer consistency and consumer value [96][98] Question: What is the performance of underperforming stores versus healthy stores? - Underperforming stores are primarily an AUV issue, with various factors contributing to their performance [65][100]

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]

Core Insights - The Joint Corp. is strengthening its leadership team to enhance company core, reignite growth, and improve profitability [1] Leadership Appointments - Andra J. Terrell has been appointed as Senior Vice President Legal, bringing 20 years of experience in franchising legal matters, compliance strategy, and complex transactions [2][5] - Eric Wyatt has been appointed as Senior Vice President Operations and Patient Experience, with over 30 years of experience in franchise operations and general management [4][5] Company Overview - The Joint Corp. is the largest provider of chiropractic care in the U.S., operating over 950 locations and achieving more than 14 million patient visits annually [7] - The company has been recognized in various rankings, including Franchise Times' "Top 400" and "Fast & Serious" lists, and was named "No. 1 in Chiropractic Services" by Entrepreneur [7] Business Structure - The Joint Corp. operates as a franchisor of clinics and provides management services to affiliated chiropractic practices in several states [8]

This presentation and other documents referenced herein include, and our officers and representatives may from time to time make or provide, certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act including, among others, statements with respect to the Company's future revenues, including opportunities to expand revenues without ...