Potbelly (PBPB) Stock

Potbelly has quintupled its market value since 2020 under CEO Wright, with successful refranchising and digital platform enhancements driving growth. Despite a 4.7% sales decline in Q3 2024, franchise royalties grew 79% year-over-year, and restaurant margins expanded by 0.7%. Potbelly's Everyday Value Combo and Perks platform have increased guest retention and digital sales, now representing 38% of total sales.

Potbelly Corporation (NASDAQ:PBPB ) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Adiya Dixon - Chief Legal Officer, Chief Compliance Officer & Secretary Robert Wright - President & Chief Executive Officer Steven Cirulis - Chief Financial Officer & Chief Strategy Officer Conference Call Participants Jeremy Hamblin - Craig-Hallum Alex Sturnieks - Lake Street Capital Markets Todd Brooks - The Benchmark Company Matt Curtis - William Blair Operator Good afternoon everyone and welcome to Potbelly Corporation's Third Quarter 2024 Earnings Conference Call. Today's call is being recorded.

CHICAGO, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB), the iconic neighborhood sandwich shop, today announced the completion of six new multi-unit development agreements. The commitments, which include an expanded partnership with Potbelly founder Bryant Keil, will bring new Potbelly shops to markets in six states across the country including Arizona, Illinois, Missouri, North Carolina, Texas and Virginia, with new and existing franchisee partners.

Potbelly's Franchise Growth Acceleration Initiative aims to expand to 2,000 units, with innovative prototypes reducing costs and driving franchisee interest, indicating significant growth potential. The 'Everyday Value Combo' and loyalty app 'Perks' have boosted value perception and customer retention, contributing to Potbelly's strong comparable sales and market share gains. PBPB's value score remains high among fast-casual restaurants, reflecting successful value promotions and menu innovations, despite industry challenges and price-sensitive consumers.

PBPB's focus on franchise expansion, digital transformation and value-driven strategies position it well for future growth.

Potbelly delivered +0.4% same-store sales growth along with $8.5 million in adjusted EBITDA in Q2 2024. Sales growth was in-line with its guidance, with adjusted EBITDA at the high-end of guidance. Potbelly expects Q3 2024 same-store sales growth to turn slightly negative though and has revised its full-year guidance downwards again.

The average of price targets set by Wall Street analysts indicates a potential upside of 96.4% in Potbelly (PBPB). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

The consensus price target hints at a 98.6% upside potential for Potbelly (PBPB). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.

Investors need to pay close attention to Potbelly (PBPB) stock based on the movements in the options market lately.