Summary of Potbelly (PBPB) FY Conference Call - June 04, 2025 Company Overview - Potbelly is a fast casual restaurant chain known for its sandwich-based menu, with a strong brand presence and customer loyalty [11][20][21] - The company has experienced significant growth and transformation since 2020, moving from a turnaround phase to a growth phase [23][72] Key Metrics and Financial Performance - As of Q1 2025, Potbelly had 444 open locations and 766 open and committed locations, including 103 franchise locations [22] - System sales growth of 34% over the past three years, with nearly 700 basis points of margin expansion at the shop level [27] - Digital sales now account for 42% of total business, up from 9% at the beginning of the pandemic [74] - Adjusted EBITDA increased from near zero to approximately $30 million last year [28] - The company aims to reach 2,000 units in the U.S., projecting system sales to exceed $3 billion at that scale [55][72] Strategic Initiatives - Potbelly's growth strategy is built on five pillars: great food, great value, great people, digital growth, and franchise expansion [29][30] - Menu innovation has been a key focus, with recent additions including new sandwiches and beverages that have resonated well with customers [33][35][74] - The company is replatforming its digital customer experience to enhance user engagement and streamline operations [41][43] Franchise Growth - Potbelly has a strong franchise development pipeline, with 322 committed locations not yet open and 70% of franchisees actively developing new units [46][50] - The franchise model is seen as a significant driver of future growth, with attractive unit-level economics and support for new franchisees [50][72] Market Position and Competitive Advantage - Potbelly has outperformed the fast casual industry in same-store sales and traffic over the last three quarters [59] - The company emphasizes a three-layered value approach, focusing on intrinsic value, everyday value, and promotional value to enhance customer experience [38][39] Future Outlook - The company maintains a positive outlook for continued growth, with guidance for low to mid-single-digit same-store sales growth and unit growth in the low double digits [70][72] - Potbelly is committed to leveraging its digital capabilities and franchise model to drive profitability and expand its market presence [72][76] Additional Insights - The management team has a clear focus on maintaining alignment across the organization regarding growth objectives and performance metrics [30] - Potbelly's unique brand cachet and customer loyalty are seen as critical assets for future expansion [20][21]

Potbelly (PBPB) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Adiya Dixon - Senior VP, Chief Legal Officer, Chief Compliance Officer & SecretaryRobert Wright - CEO & PresidentSteven Cirulis - Senior VP, CFO & Chief Strategy OfficerAlex Sturnieks - Equity Research AssociateMatt Curtis - Equity Research Conference Call Participants Jeremy Hamblin - Senior Research AnalystTodd Brooks - Equity Research Analyst Operator Good afternoon, everyone, and welcome to Potbelly Corporation's First Q ...

Potbelly (PBPB) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good afternoon, everyone, and welcome to Potbelly Corporation's First Quarter twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, all participants have been placed in a listen only mode and the lines will be opened for your questions following the prepared remarks. On today's call, have Bob Wright, President and Chief Executive Officer Stephen Surulis, Senior Vice President and Chief Financial Offi ...