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Dec 31, 2023
Potbelly Q4 2023 Earnings Report
Reported strong fourth quarter and full year results driven by traffic growth and strategic initiatives.
Key Takeaways
Potbelly Corporation reported a 4.7% increase in total revenues for the fourth quarter, reaching $125.7 million, driven by a 6.3% increase in same-store sales and a 3.4% increase in Average Weekly Sales (AWS) to $24,960. GAAP net income attributable to Potbelly Corporation was $2.7 million, with diluted EPS of $0.09.
Total revenues increased by 4.7% to $125.7 million.
Same-store sales increased by 6.3%, driven by traffic growth.
GAAP net income attributable to Potbelly Corporation was $2.7 million, with diluted EPS of $0.09.
Adjusted EBITDA was $7.5 million.
Potbelly
Potbelly
Potbelly Revenue by Segment
Revenue by Segment
Sandwich shop sales, net Revenue
CapyFin.com Forward Guidance
Potbelly provided its first quarter and full year 2024 outlook, introducing new long-term growth ranges.
Positive Outlook
- Same Store Sales growth of (-0.25%) to +0.5% for Q1 2024 and Low- to Mid-Single Digit for FY2024
- New Unit Growth ~10% for FY2024 and Low-Double Digit long-term
- Adjusted EBITDA of $4.4M to $5.2M for Q1 2024 and High-Single to Low-Double Digit for FY2024
- Long-Term Growth Ranges: Low- to Mid-Single Digit for Same Store Sales
- Long-Term Growth Ranges: Low- to Mid-Double Digit for Adjusted EBITDA
Challenges Ahead
- Impact of refranchising 33 former company locations in 2023
- 53rd week in 2023 will not recur in 2024
- Increased costs associated with the Company’s investment in development efforts to support sustained franchise growth
- A $1.1 million settlement gain in the first quarter 2024 with a third-party software provider
- Effect of 2023 refranchising is most pronounced in the first three quarters of 2024