System-wide Sales Growth
System-wide sales for the first quarter of 2025 increased approximately 4.8% year-over-year to $140.7 million, with total revenue increasing approximately 2.3% year-over-year to $113.7 million.
Franchise Expansion
Potbelly opened at least four new restaurants during the first quarter and added 40 new shop commitments, bringing the total open and committed shop count to 766. Franchise revenue increased approximately 30.8% year-over-year to $4.7 million.
Digital Sales Growth
The digital business represented over 42% of total shop sales during the first quarter, an increase of approximately 200 basis points versus last year.
Menu Innovation Success
The introduction of new menu items, including the Prime Rib Steak Sandwich, Chili Mac, and Banana Pudding Shake, received positive customer reception and contributed to sales growth.
Improvement in Shop-Level Margins
Year-over-year shop-level margin improved to 13.7%, with adjusted EBITDA of $5.5 million, well above guidance.