Potbelly Q1 2020 Earnings Report
Key Takeaways
Potbelly Corporation reported a decrease in total revenues to $87.6 million compared to $98.1 million. Company-operated comparable store sales decreased 10.1%, while GAAP net loss attributable to Potbelly Corporation was $13.3 million or $0.56 per share. The company is focusing on off-premise and digital strategies to drive improving trends in the second quarter.
Total revenues decreased to $87.6 million from $98.1 million year-over-year.
Company-operated comparable store sales decreased 10.1%.
GAAP net loss attributable to Potbelly Corporation was $13.3 million, or $0.56 per share.
Adjusted net loss attributable to Potbelly Corporation was $7.7 million, or $0.32 per share.
Potbelly
Potbelly
Potbelly Revenue by Segment
Forward Guidance
Potbelly is taking steps to support and fortify its business, operating with a cash-preservation mindset. They are having proactive conversations with landlords, considering closing up to 100 shops, and implementing ways to work more effectively and efficiently. The company is seeing encouraging signs of recovery in their business as they move through the second quarter.
Positive Outlook
- Strategic investments in digital capabilities are proving critical.
- Sales comps improved to -45% by the first week of May.
- Accessibility is key, with options like delivery, pick-up, and curbside pick-up.
- Innovations like Potbelly Pantry and Family Meals are having an impact.
- Seeing encouraging signs of recovery in the second quarter.
Challenges Ahead
- Challenges will persist over the next several months.
- Operating with a cash-preservation mindset.
- Considering closing up to 100 shops.
- Comparable same-store sales dropped to -68% in March.
- Pandemic arrested the strong turnaround momentum.
Revenue & Expenses
Visualization of income flow from segment revenue to net income