Potbelly Corp. Beats Expectations with 150-Basis Point Expansion in Shop-Level Margins and Strong Performance from Digital Business
In the first quarter, Potbelly Corp. (Nasdaq: PBPB) reported growth in system-wide sales with an increase of 1.9%. Despite a 6% decrease in total revenue, their adjusted EBITDA increased by 2.2% to $5.7 million. This was due to the company’s success in managing both restaurant-level and corporate costs, resulting in a 150-basis point expansion in shop-level margins.
CEO Bob Wright highlighted the company’s strong corporate profitability, with adjusted EBITDA of $5.7 million. Additionally, Potbelly saw strong growth in their digital business, accounting for 40% of total sales year-over-year. The franchise sales team added 32 commitments to the pipeline, leading to a 26% increase in open and committed shops compared to the previous year.
In response to their performance, Potbelly announced a $20 million share repurchase program and unveiled a new restaurant design prototype. For more information about Potbelly Corp., please visit Exec Edge at executives-edge.com or contact them at Editor@executives-edge.com for more information on this exciting development for the company and its future prospects.
