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Dec 27, 2020
Potbelly Q4 2020 Earnings Report
Potbelly's Q4 2020 financial performance was marked by sequential revenue growth and strategic advancements amidst pandemic challenges.
Key Takeaways
Potbelly Corporation reported a 3% sequential increase in total revenues to $74.9 million for the fourth quarter of 2020. The company's same-store sales improved by 130 basis points sequentially to (19.7%). Despite these improvements, Potbelly reported a GAAP net loss of ($16.4) million, or ($0.68) per share, and an adjusted net loss of ($13.7) million, or ($0.57) per share.
Total revenues increased 3% sequentially to $74.9 million.
Same-store sales trends finished the fourth quarter at (19.7%), a 130-basis point improvement from the third quarter.
GAAP net loss attributable to Potbelly Corporation was ($16.4) million, or ($0.68) per share.
Non-catering digital sales comprised 35.8% of total Company sales compared to 12.8% last year.
Potbelly
Potbelly
Potbelly Revenue by Segment
Revenue by Segment
Sandwich shop sales, net Revenue
CapyFin.comFranchise royalties, fees and rent income Revenue
CapyFin.com Forward Guidance
Potbelly Corporation anticipates sequential improvement in top-line results throughout each quarter of fiscal 2021 and expects the majority of operating earnings and Adjusted EBITDA during the second half of 2021, supporting both shop-level and enterprise-level profitability, as well as positive cash flow.
Positive Outlook
- Expect the recovery of our business and shops to track the rate of vaccinations and increased dining room re-openings as pandemic conditions recede.
- Expect that our strategic initiatives will build momentum throughout the year.
- Expect to see sequential improvement in our top-line results throughout each quarter of fiscal 2021.
- Anticipate that we will generate the majority of our operating earnings and Adjusted EBITDA during the second half of 2021.
- Strategic initiatives and economic recovery expected to support sequential quarterly improvement in performance and return to positive cash flow and enterprise profitability in second half of 2021
Challenges Ahead
- Company remains focused on furthering a culture of vigilant cost discipline.
- Company remains focused on driving additional operational efficiencies.
- Company remains focused on advancing the five pillars of our new strategy to accelerate Potbelly’s future growth.
- COVID-19 related impacts, which significantly impacted the overall business.
- Weekly cash burn decreased from the targeted $0.50 million per week average to $0.44 million, driven by retimed lease repayments, but including restructuring costs and deferred salary repayment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income