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Potbelly
🇺🇸 NASDAQ:PBPB
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Jun 27, 2021

Potbelly Q2 2021 Earnings Report

Potbelly's financial performance improved significantly in the second quarter of 2021, driven by strategic initiatives and recovery in the operating environment.

Key Takeaways

Potbelly Corporation reported strong financial results for the second quarter of 2021, with total revenues increasing by 24.9% to $97.5 million. The company experienced significant top-line growth, reflecting strengthening unit-level economics and benefits from strategic initiatives. GAAP net loss attributable to Potbelly was ($3.9) million, and adjusted diluted EPS was a loss of ($0.10).

Same-store sales trends showed sequential improvement, ending the second quarter at +70.0% compared to (3.1%) in the first quarter of 2021; approaching 2019 levels at (-0.7%).

Second consecutive quarter of shop-level profitability and 23.8% growth in Average Unit Volume (AUV) compared to the first quarter 2021.

Suburban shops, approximately 60% of units, continued to show strength with shop-level margin of 15.2%, slightly exceeding the 2019 average level across all shop types.

Potbelly Perks loyalty program showed strong results, adding 142,000 new members during the quarter, with Perks sales representing nearly 18% of total sales.

Total Revenue
$97.5M
Previous year: $56.2M
+73.6%
EPS
-$0.1
Previous year: -$0.63
-84.1%
Gross Profit
$25.6M
Previous year: $3.52M
+627.8%
Cash and Equivalents
$11.8M
Previous year: $29.1M
-59.5%
Free Cash Flow
$2.21M
Previous year: $420K
+426.9%
Total Assets
$265M
Previous year: $327M
-19.0%

Potbelly

Potbelly

Forward Guidance

The company expects continued strength in comparable sales in Q3'21 and Q4'21, accelerated shop-level profitability, and the majority of Adjusted EBITDA to be generated in the second half of 2021, as well as enterprise-level profitability and positive cash flow from operations during the second half of the year excluding deferred expenses from 2020.

Positive Outlook

  • Continued strength in comparable sales in Q3’21 and Q4’21
  • Accelerated shop-level profitability
  • Majority of Adjusted EBITDA to be generated in the second half of 2021
  • Enterprise-level profitability during the second half of the year excluding deferred expenses from 2020
  • Positive cash flow from operations during the second half of the year excluding deferred expenses from 2020

Challenges Ahead

  • Risks related to the COVID-19 outbreak
  • Compliance with Credit Agreement covenants
  • Competition
  • General economic conditions
  • Changes in commodity, energy and other costs

Company Overview

Full financial data and analysis

View Potbelly