Potbelly Corporation (NASDAQ:PBPB ) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Adiya Dixon – Senior Vice President, Chief Legal Officer and Secretary Bob Wright – President and Chief Executive Officer Steve Cirulis – Senior Vice President and Chief Financial Officer Conference Call Participants Jeremy Hamblin – Craig Hallum Capital Group Alex Sturnieks – Lake Street Capital Markets Todd Brooks – The Benchmark Company Matt Curtis – William Blair Operator Good afternoon, everyone, and welcome to Potbelly Corporation's Fourth Quarter 2024 Earnings Conference Call. Today's call is being recorded.
Potbelly (PBPB) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.02 per share a year ago.
PBPB's fourth-quarter performance is likely to have benefited from menu innovation, digital strategies and a franchise-led expansion strategy.
The consensus price target hints at a 25.3% upside potential for Potbelly (PBPB). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Potbelly (PBPB) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.
Potbelly's strategic focus on low-cost, high-growth fast-casuals is paying off, with strong same-store sales recovery, EBITDA growth, and franchise expansion. Potbelly's real estate strategy and flexible prototype formats drive impressive unit-level economics, with high returns on invested capital and a strong franchise demand. Value platforms like the $7.99 Skinny Combo and menu innovations are boosting incremental sales and preserving franchisee margins despite a budget-conscious consumer base.
Potbelly (PBPB) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
The mean of analysts' price targets for Potbelly (PBPB) points to a 47.8% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
Potbelly (PBPB) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
PBPB fiscal fourth-quarter comps reflect improvement buoyed by its product innovation and digital marketing initiatives.
PBPB is on a strong growth trajectory, driven by its strategic initiatives focused on same-store sales growth and digitalization.
Potbelly has quintupled its market value since 2020 under CEO Wright, with successful refranchising and digital platform enhancements driving growth. Despite a 4.7% sales decline in Q3 2024, franchise royalties grew 79% year-over-year, and restaurant margins expanded by 0.7%. Potbelly's Everyday Value Combo and Perks platform have increased guest retention and digital sales, now representing 38% of total sales.