Potbelly (NASDAQ:PBPB) Posts Higher-Than-Anticipated Gross sales In Q1 By Inventory Story

Informal sandwich chain Potbelly (NASDAQ:)
reported Q1 CY2024 outcomes beating Wall Avenue analysts’ expectations, with income down 6% yr on yr to $111.2 million. It made a non-GAAP revenue of $0.01 per share, down from its revenue of $0.02 per share in the identical quarter final yr.

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Potbelly (PBPB) Q1 CY2024 Highlights:

• Income: $111.2 million vs analyst estimates of $109.5 million (1.5% beat)
• EPS (non-GAAP): $0.01 vs analyst estimates of -$0.02 ($0.03 beat)
• Q2 2024 adjusted EBITDA steering of $7.8 million on the midpoint, under expectations of $9.2 million
• Full yr 2024 steering was lowered for each identical retailer gross sales and adjusted EBITDA progress
• Gross Margin (GAAP): 34.1%, up from 30.3% in the identical quarter final yr
• Similar-Retailer Gross sales have been down 0.2% yr on yr
• Retailer Areas: 425 at quarter finish, lowering by 1 during the last 12 months
• Market Capitalization: $289.7 million

With a novel origin story the place the corporate truly began as an vintage store, Potbelly (NASDAQ:PBPB) at the moment is a sequence recognized for its toasty sandwiches.

Fashionable Quick FoodModern quick meals is a comparatively newer class representing a center floor between conventional quick meals and sit-down eating places. These institutions function an expanded menu choice priced above conventional quick meals choices, typically incorporating more energizing and cleaner substances to serve clients prioritizing high quality. These eateries are capitalizing on the notion that your drive-through burger and fries joint is detrimental to your well being due to inferior substances.

Gross sales GrowthPotbelly is a small restaurant chain, which typically brings disadvantages in comparison with bigger opponents benefitting from higher model consciousness and economies of scale.

As you may see under, the corporate’s annualized income progress price of three% during the last 5 years was weak , however to its credit score, it opened new eating places and grew gross sales at present, established eating areas.

This quarter, Potbelly’s income fell 6% yr on yr to $111.2 million however beat Wall Avenue’s estimates by 1.5%. Trying forward, Wall Avenue expects income to say no 2.1% over the subsequent 12 months.

Similar-Retailer SalesSame-store gross sales progress is a vital metric that tracks natural progress and demand for a restaurant’s established areas.

Potbelly’s demand has been spectacular for a restaurant enterprise during the last eight quarters. On common, the corporate has grown its same-store gross sales by a formidable 12.5% yr on yr. This efficiency suggests its regular rollout of latest eating places could possibly be helpful for shareholders. When an organization has robust demand, extra areas ought to assist it attain extra clients in search of its meals.

Within the newest quarter, Potbelly’s yr on yr same-store gross sales have been flat. By the corporate’s requirements, this progress was a significant deceleration from the 22.2% year-on-year enhance it posted 12 months in the past. We’ll be watching Potbelly intently to see if it may well reaccelerate progress.

Key Takeaways from Potbelly’s Q1 Outcomes
Though gross sales and EPS beat within the quarter, steering was a damaging. Q2 identical retailer gross sales and adjusted EBITDA steering have been each under expectations, and the corporate lowered its identical retailer gross sales and adjusted EBITDA progress steering for 2024. The inventory is flat after reporting and at present trades at $9.95 per share.