Potbelly Corporation Reports Preliminary Results for Fourth Fiscal Quarter and Full Year 2023
January 08 2024 - 7:00AM
Potbelly Corporation (NASDAQ: PBPB),
(“Potbelly” or the
“Company”) the iconic neighborhood sandwich shop concept,
today reported preliminary results for the fourth fiscal quarter
and full year ended December 31, 2023.
Fourth Quarter 2023 |
Guidance (as of 11/1/23) |
Preliminary Results |
Same-Store Sales |
+4.0% to +6.0% |
+5.9% to +6.4% |
Systemwide sales1 |
- |
+11.0% to +11.5% |
Average Weekly Sales (AWS) |
$24,250 to $24,750 |
$24,870 to $24,970 |
Full Year 2023 |
Guidance (as of 11/1/23) |
Preliminary Results |
Same-Store Sales |
+11.5% to +12.0% |
+11.9% to +12.0% |
Systemwide sales1 |
- |
+12.5% to +12.6% |
Average Unit Volumes (AUVs) |
$1.29M |
$1.29M to $1.30M |
1Systemwide sales growth benefitted from a 53rd
week in 2023. For the fourth quarter and full year the benefit was
approximately 580bps and 160bps, respectively.
Bob Wright, President and Chief Executive
Officer of Potbelly Corporation, commented, “Our preliminary fourth
quarter results marked continued strong performance as our team
executed on our Five-Pillar Strategy. On the top line, we grew
same-store sales approximately 6%, driven mainly by traffic growth,
and delivered average weekly sales above the high end of our
previously stated guidance. Notably, we continued to grow traffic
share within the fast casual industry during each period of the
quarter. We are also pleased to have signed several additional
development deals, bringing our total shop commitments to 192
shops, with more exciting deals in the pipeline. All in all, 2023
was an excellent year of progress at Potbelly and we are excited
with what 2024 has in store for this unique brand.”
The expected financial results are preliminary
and unaudited, have not been reviewed by the Company’s independent
registered public accountants, and remain subject to the completion
of normal year-end accounting procedures and adjustments and are
subject to change. The Company expects to release final financial
and operating results for its fiscal fourth quarter and fiscal year
ended December 31, 2023 during March 2024.
ICR Conference
ParticipationPotbelly will participate in a fireside chat
and host investor meetings at the 26th Annual ICR Conference in
Orlando, FL on January 8-9, 2024. Potbelly’s fireside discussion
will begin today at 3:00 PM Eastern time and will be webcast live
from the Investor Relations section of the Company’s website at
www.potbelly.com, under “Events and Presentations”.
About PotbellyPotbelly
Corporation is a neighborhood sandwich concept that has been
feeding customers’ smiles with warm, toasty sandwiches, signature
salads, hand-dipped shakes and other fresh menu items, customized
just the way customers want them, for more than 40 years. Potbelly
promises Fresh, Fast & Friendly service in an environment that
reflects the local neighborhood. Since opening its first shop in
Chicago in 1977, Potbelly has expanded to neighborhoods across the
country - with approximately 430 shops in the United States
including approximately 69 franchised shops in the United States.
For more information, please visit our website at
www.potbelly.com.
Definitions
The following definitions apply to these terms as used
throughout this press release:
-
Revenues – represents net company-operated
sandwich shop sales and our franchise royalties and fees. Net
company-operated shop sales consist of food and beverage sales, net
of promotional allowances and employee meals. Franchise royalties
and fees consist of royalty income, franchise fee, and other fees
collected from franchisees including advertising and rent.
-
Company-operated comparable store sales or same-store
traffic – an operating measure that represents the change
in year-over-year sales or transactions for the comparable
company-operated store base open for 15 months or longer.
- Average
Weekly Sales (AWS) – an operating measure that represents
the average weekly sales of all company-operated shops which
reported sales during the associated time period.
- Average
Unit Volume (AUV) – an operating measure that represents
the average annual sales of all company-operated shops which
reported sales during the associated time period.
- System-wide
sales – an operating measure that represents the sum of
sales generated by company-operated shops and sales generated by
franchised shops, net of all promotional allowances, discounts, and
employee meals. Net sales from franchised shops are not included in
total revenues. Rather, revenues are limited to the royalties, fees
and other income collected from franchisees.
Forward-Looking Statements
This press release may contain statements that
might be considered as forward-looking statements or predictions of
future operations including with respect to the Company’s ability
to sign additional agreements for new shops and sustain positive
momentum into 2024. Such statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995 and are based on management’s belief or interpretation of
information currently available. These statements and assumptions
involve certain risks and uncertainties including that it is unable
to successfully execute its growth plans and that the Company is
not able to achieve its planned expansion. Actual events may also
differ from these expectations as a result of the risks identified
from time to time in our filings with the Securities and Exchange
Commission. We assume no duty to update these statements as of any
future date.
Investor Contact: Jeff
PriesterICRinvestor@potbelly.com
Media Contact:ICRPotbellyPR@icrinc.com
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