CHICAGO - Potbelly (NASDAQ:PBPB) Corporation (NASDAQ: PBPB), the renowned sandwich shop chain currently trading at $9.07 with a market capitalization of $271.5 million, announced preliminary results for its fourth fiscal quarter ended December 29, 2024, showcasing a slight uptick in same-store sales growth and a solid adjusted EBITDA. The company's estimates for the quarter indicate a growth of 0.2% to 0.3% in same-store sales, surpassing their initial guidance of a 2.5% to 0.5% decrease. According to InvestingPro analysis, the stock trades at an attractive P/E ratio of 7.03, though current price levels suggest the stock may be overvalued relative to its Fair Value.
The company also reported the successful opening of eight new shops during the fourth quarter, in addition to securing 30 new franchise shop commitments. This activity brings the total number of open and committed shops to 727 as of the end of the quarter. Looking forward to 2025, Potbelly has revealed that 38 new shop sites are already in development, signaling a year of accelerated growth.
President and CEO Bob Wright expressed satisfaction with the Q4 performance, attributing the positive results to product innovation, digital marketing initiatives, and operational excellence. Wright also noted that the company effectively managed costs, which led to expanded restaurant margins and an anticipated 10% growth in adjusted EBITDA for the full year. The company maintains a healthy gross profit margin of 35.5% and generated revenue of $471.7 million in the last twelve months, as reported by InvestingPro.
In addition to these financial updates, Potbelly will partake in a fireside chat and host investor meetings at the 27th Annual ICR Conference in Orlando, FL. The event will feature a live webcast discussion on Tuesday, January 14, 2025.
Potbelly, with a history spanning over 40 years, operates more than 440 shops in the United States, including over 90 franchised locations. The company prides itself on offering fresh, fast, and friendly service in a neighborhood-focused environment.
These preliminary results are based on management's current review and are subject to finalization of the company's year-end financial and accounting procedures. As such, the presented figures may be adjusted upon the completion of the full audit. This update is based on a press release statement from Potbelly Corporation. For deeper insights into Potbelly's financial health, growth prospects, and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
In other recent news, Potbelly Corporation reported key financial developments. The company experienced a modest increase in system-wide sales and a significant surge in franchise revenue, as revealed during its Third Quarter 2024 Earnings Call. Revenues reached $115.1 million, while system-wide sales totaled approximately $139.2 million, marking a 1% growth. The company also reported a 19% year-over-year growth in adjusted EBITDA to $8.7 million and a net income of $3.7 million.
Another recent development includes Potbelly's appointment of KPMG as the new independent registered public accounting firm for the fiscal year ending December 27, 2025. This decision followed a competitive selection process by the company's Audit Committee. The transition to KPMG will occur after the completion and issuance of an audit report on Potbelly's consolidated financial statements and internal control over financial reporting for the fiscal year ended December 29, 2024, by the outgoing auditor, Deloitte & Touche LLP.
Finally, the company's strategy of focusing on digital sales, which now constitute over 38% of total shop sales, and the opening of 8 new shops were key factors in this growth. Potbelly's franchise revenue surged 79% to $4.4 million due to a 30% increase in franchised units. These recent developments reflect Potbelly's resilience and strategic growth.
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