Potbelly Corporation ( (PBPB) ) has released its Q3 earnings. Here is a breakdown of the information Potbelly Corporation presented to its investors.
Potbelly Corporation, a well-known neighborhood sandwich shop chain, operates in the fast-casual dining sector, offering a variety of sandwiches, salads, and shakes with a focus on quality and customization.
In its latest earnings report for the third fiscal quarter of 2024, Potbelly Corporation demonstrated significant growth in profitability despite a decline in total revenues. The company posted a year-over-year increase in both GAAP and adjusted earnings per share, alongside a notable rise in net income and adjusted EBITDA.
Key financial metrics revealed a decrease in total revenues by 4.7% to $115.1 million, attributed largely to the refranchising of company shops. However, franchise royalties and fees saw a substantial increase of 79.2%, driven by a 30% rise in franchised units. The company also opened eight new shops and signed commitments for 32 additional franchise locations, highlighting its strategic expansion efforts.
Looking forward, Potbelly’s management remains optimistic, with plans to capitalize on new menu offerings and a robust digital strategy to enhance customer engagement. The company aims to leverage its franchise-led growth model to achieve its goal of expanding to 2,000 units across the U.S., positioning itself for further growth in 2025 and beyond.
