Potbelly Q1 2021 Earnings Report
Key Takeaways
Potbelly Corporation reported financial results for the first fiscal quarter ended March 28, 2021, showing a 4.3% increase in total revenues to $78.1 million compared to $74.9 million. The company achieved shop-level profitability and expects to be cash flow positive by the end of the third quarter. Same-store sales trends improved to (3.1%).
Same-store sales trends continued to show sequential improvement, ending the first quarter at (3.1%), compared to (19.7%) in the fourth quarter of 2020.
Returned to profitability at the shop level for the quarter and ahead of previous forecast.
Potbelly Perks loyalty program added 132,000 new members during the quarter, with Perks sales increasing 11% on a year-over-year basis.
Successful execution of $16 million private placement and amendment of credit facility during the quarter solidifies liquidity position.
Potbelly
Potbelly
Potbelly Revenue by Segment
Forward Guidance
Potbelly expects sequential improvement in top-line results throughout each quarter of fiscal 2021. The majority of operating earnings and Adjusted EBITDA are expected to be generated in the second half of 2021. The company expects to deliver enterprise-level profitability as well as positive cash flow during the second half of the year.
Positive Outlook
- Sequential improvement in top-line results throughout each quarter of fiscal 2021.
- Majority of operating earnings and Adjusted EBITDA are expected to be generated in the second half of 2021.
- Expectation to deliver enterprise-level profitability during the second half of 2021.
- Expectation of positive cash flow during the second half of 2021.
- Strong balance sheet and solid liquidity foundation.
Challenges Ahead
- Risks related to the COVID-19 outbreak.
- Compliance with Credit Agreement covenants.
- Competition in the market.
- General economic conditions.
- Potential changes in commodity, energy, and other costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income