Company Update (NASDAQ:PBPB): Potbelly Corp Reports Results for First Fiscal Quarter 2015

Potbelly Corp (NASDAQ:PBPB) reported financial results for the first fiscal quarter ended March 29, 2015.

Key highlights for the thirteen weeks ended March 29, 2015 compared to the thirteen weeks ended March 30, 2014 include:

  • Seven new company-operated shops opened.
  • Total revenues increased 16.1% to $85.8 million from $73.9 million.
  • Company-operated comparable store sales increased 5.4%.
  • Adjusted net income attributable to Potbelly Corporation increased to $0.8 million, or $0.03 per diluted share, from adjusted net income of $0.2 million, or $0.01 per diluted share.
  • GAAP net income attributable to Potbelly Corporation was $0.5 million, compared to net loss of $0.3 million during the same fiscal period of 2014.
  • Adjusted EBITDA increased 30.3% to $8.2 million from $6.3 million.

Aylwin Lewis, Chairman and Chief Executive Officer of Potbelly Corporation, commented, “We are very pleased with our results in the first quarter, where we delivered revenue growth of over 16% and adjusted EBITDA growth of over 30% driven by comparable shop sales of 5.4% and new corporate shop development. We will continue to grow using our strong balance sheet and self-funded model and we remain confident in the long term fundamentals of our business.”

2015 Outlook

For the full fiscal year of 2015, management currently expects at least 20% annual adjusted net income growth. This guidance is based, in part, on the following assumptions for fiscal year 2015:

  • 48 – 55 total new shop openings, including 40 – 45 company-operated shop openings;
  • Low single-digit company-operated comparable store sales growth;
  • An effective tax rate that is not expected to exceed approximately 40.0%; and
  • Comparable adjustments to net income as discussed in the “Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures.” (Original Source)

Shares of Potbelly Corporation closed today at $14.514, down $0.146 or 1.00%. PBPB has a 1-year high of $17.21 and a 1-year low of $10.91. The stock’s 50-day moving average is $14.10 and its 200-day moving average is $13.55.

On the ratings front, Potbelly has been the subject of a number of recent research reports. In a report issued on February 27, Piper Jaffray analyst Nicole Miller Regan downgraded PBPB to Sell, with a price target of $12, which represents a potential downside of 18.3% from where the stock is currently trading. Separately, on February 18, William Blair’s Sharon Zackfia reiterated a Buy rating on the stock .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicole Miller Regan and Sharon Zackfia have a total average return of 6.4% and 16.1% respectively. Regan has a success rate of 64.0% and is ranked #841 out of 3589 analysts, while Zackfia has a success rate of 60.5% and is ranked #441.

Potbelly Corporation, through its wholly-owned subsidiary, Potbelly Sandwich Works LLC, operates Potbelly Sandwich Works sandwich shops in 26 states & the District of Columbia. It offerstoasty warm sandwiches, signature salads & other fresh menu items.

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