Potbelly Corp. (Nasdaq: PBPB) reported growth in system-wide sales during the first quarter, with an increase of 1.9%. Despite a 6% decrease in total revenue, their adjusted EBITDA increased by 2.2% to $5.7 million, highlighting the company’s success in managing both restaurant-level and corporate costs. CEO Bob Wright also noted that their digital business saw growth year-over-year, accounting for 40% of total sales.
The franchise sales team added 32 commitments to the pipeline, leading to a 26% increase in open and committed shops compared to the previous year. This expansion resulted in a 150-basis point expansion in shop-level margins, demonstrating the company’s ability to effectively manage costs and drive profitability at the restaurant level. Potbelly also saw strong corporate profitability with adjusted EBITDA of $5.7 million, further solidifying their position as a profitable business.
In response to their performance, Potbelly announced a $20 million share repurchase program and unveiled a new restaurant design prototype. This move shows their commitment to investing in their company and continuing to grow their business through innovation and expansion strategies. For more information on Potbelly Corp., please visit Exec Edge at executives-edge.com or contact them at Editor@executives-edge.com
