Potbelly Q4 2019 Earnings Report
Key Takeaways
Potbelly Corporation reported total revenues of $101.8 million and a net loss attributable to Potbelly Corporation of $1.3 million for the fourth quarter of 2019. Company-operated comparable store sales were nearly flat at (0.1%).
Fourth quarter represented the best comparable same-store sales in over three years; third consecutive quarter of sequential same-store sales improvement.
Off-Premise & Digital channel produced record growth, resulting in a mix of 21.7%.
Menu optimization efforts grew average check by 410 basis points from full-year 2018 to full-year 2019.
Executed four new franchise deals, for 42 shops over the next 5-7 years, doubling the Company’s current franchise footprint.
Potbelly
Potbelly
Forward Guidance
For the full fiscal year 2020, management currently expects a 0.5% to 2.0% increase in company-operated comparable store sales and adjusted EBITDA to be between $20.5 million and $25.5 million.
Positive Outlook
- Expect comps to be positive in the first quarter
- Forecasting comps to range between positive 0.5% to 2.0% in fiscal 2020
- Strategic initiatives to help to continue to significantly improve traffic trends moving forward
- 2020 will be a year of capitalizing on momentum
- Testing a series of new initiatives
Challenges Ahead
- Expect 8-10 total shop closures, all of which are company-operated shops
- Cost of goods sold to be between 26.7% and 27.3%
- Labor as a percentage of sales to be between 31.0% and 32.0%
- Adjusted G&A expense to be between $44.0 million and $46.0 million
- Streamlining path to sustainable, positive comp and traffic growth