Potbelly Corporation ( (PBPB) ) has released its Q1 earnings. Here is a breakdown of the information Potbelly Corporation presented to its investors.
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Potbelly Corporation is a well-known neighborhood sandwich shop chain offering a variety of sandwiches, salads, and shakes, operating primarily in the fast-casual dining sector with a focus on fresh and friendly service.
In its first fiscal quarter of 2025, Potbelly Corporation reported a 4.8% increase in system-wide sales, with positive same-store sales growth, and opened four new shops while securing 40 additional franchise commitments. The company also reiterated its full-year guidance and introduced its second-quarter guidance, projecting continued positive same-store sales growth.
Key financial metrics for the quarter showed a 2.3% increase in total revenues to $113.7 million, with average weekly sales rising by 1.2%. The company reported a GAAP net loss of $62 thousand, a significant improvement from the $2.8 million loss in the previous year, and adjusted EBITDA decreased slightly by 2.8% to $5.5 million. Potbelly also repurchased approximately 117 thousand shares of its common stock, reflecting a continued commitment to shareholder value.
Potbelly’s strategic focus on franchise development is evident, with the opening of four new shops and 40 new franchise commitments, bringing the total shop count to 766. The company plans to open at least 38 new shops in 2025, aiming for an adjusted EBITDA of $33M to $34M, indicating a robust growth trajectory.
Looking ahead, Potbelly’s management remains optimistic about its growth prospects, emphasizing the strength of its brand and strategic initiatives to drive long-term profitability. The company aims to leverage its shop growth pipeline and manage corporate costs prudently to ensure sustained EBITDA growth in the coming years.