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. The company also noted that their digital business saw growth year-over-year, accounting for 40% of total sales.
CEO Bob Wright highlighted the company’s success in managing both restaurant-level and corporate costs, resulting in a 150-basis point expansion in shop-level margins. Additionally, Potbelly saw strong corporate profitability with adjusted EBITDA of $5.7 million. 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.
In response to their performance, Potbelly announced a $20 million share repurchase program and unveiled a new restaurant design prototype. The company’s digital business continues to grow year-over-year and accounts for 40% of total sales. Despite a decrease in total revenue of 6%, Potbelly’s adjusted EBITDA increased by 2.2% to $5.7 million, indicating strong financial performance overall. CEO Bob Wright attributes this success to the company’s ability to manage both restaurant-level and corporate costs, resulting in an expansion of shop-level margins by 150 basis points. The franchise sales team was also successful in adding commitments to the pipeline, leading to a significant increase in open and committed shops compared to the previous year.
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