If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, Potbelly (PBPB) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.
The average of price targets set by Wall Street analysts indicates a potential upside of 34.9% in Potbelly (PBPB). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Here is how Potbelly (PBPB) and Casey's General Stores (CASY) have performed compared to their sector so far this year.
Potbelly (PBPB) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Potbelly Corporation (NASDAQ:PBPB ) Q2 2025 Earnings Conference Call August 6, 2025 5:00 PM ET Company Participants Adiya Dixon - Senior VP, Chief Legal Officer, Chief Compliance Officer & Secretary Robert D. Wright - President, CEO & Director Steven W.
Potbelly (PBPB) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.08 per share a year ago.
Even though Potbelly is priced in from its recent run-up, it remains valuable from a long-term value standpoint. Restaurant growth through franchisee development allows PBPB to free up cash and improve margins. The company continues to innovate through its menu while making technological improvements that are important over the long term.
Potbelly delivered +0.9% company-operated same-store sales in Q1 2025, beating its guidance for -1.5% to -0.5%. Potbelly's guidance had included a 1.5% negative impact from winter weather. Potbelly's adjusted EBITDA performance also exceeded expectations.
Potbelly (PBPB) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to earnings of $0.01 per share a year ago.
PBPB remains fundamentally strong, driven by its five-pillar strategy, which emphasizes store expansion through franchising, digital growth and menu innovation.
Potbelly's stock dropped 20% despite beating Q4 FY 2024 EPS and revenue expectations due to plans to resume building company-owned stores, deviating from its asset-light strategy. Management aims to open 20 company-owned restaurants annually starting in late FY 2025, complementing franchise growth and leveraging high-volume markets like Texas and the Midwest. Potbelly's FY 2025 guidance includes 1.5%-2.5% same-store sales growth, 38 new openings, and adjusted EBITDA of $33-$34 million, with a strong buy recommendation under $12.
PBPB's fiscal fourth-quarter top line is negatively impacted by the absence of a 53rd week in 2024 and the company's ongoing refranchising strategy.