Potbelly Corporation ( (PBPB) ) has released its Q4 earnings. Here is a breakdown of the information Potbelly Corporation presented to its investors.
Potbelly Corporation is a well-known neighborhood sandwich shop chain, offering a variety of sandwiches, salads, shakes, and other menu items, with a focus on providing fresh, fast, and friendly service in a local neighborhood atmosphere. The company has expanded significantly since its inception in Chicago in 1977, with over 440 locations across the United States, including more than 90 franchised shops.
In its latest earnings report for the fourth fiscal quarter and full year 2024, Potbelly Corporation announced a significant increase in profitability. The company reported a 67% year-over-year increase in GAAP EPS for Q4, reaching $0.15, and a 550% increase in adjusted EPS to $0.13. The net income for the quarter rose by 69% year-over-year, while adjusted EBITDA saw a 30% increase. The company also opened eight new shops and secured commitments for 29 additional franchise locations during the quarter.
Key financial metrics for the year included a slight increase in average weekly sales and a decrease in total revenues by 5.9% to $462.6 million, primarily due to the impact of a 53rd week in 2023 and refranchising activities. Despite this, the company achieved a substantial increase in GAAP net income to $40.3 million, driven by a significant income tax benefit. Adjusted net income also rose to $9.2 million, with adjusted EBITDA increasing by 14.9% to $32.6 million.
Looking ahead, Potbelly Corporation’s management remains optimistic about future growth. The company plans to continue its focus on menu innovation, digital investments, and expanding its shop footprint, with a goal of opening at least 38 new locations in 2025. The management’s strategic initiatives aim to drive same-store sales growth and improve profitability, positioning Potbelly for continued success in the coming years.