NASDAQ$PBPB

Potbelly Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Potbelly reported improvements in business trends and reached profitability at the shop level.

Potbelly Corporation reported financial results for the third fiscal quarter ended September 27, 2020, showing improvements in same-store sales and reaching profitability at the shop level. The company is implementing a new strategic focus on "Traffic Driven Profitability" and announces a G&A restructuring expected to yield $3.5-$4.0 million in annual corporate expense optimization.

  • Same-store sales trends continued to improve, ending the period at (21.0%), a 2,000-basis point improvement from the previous quarter.
  • Reached profitability at the shop level during the quarter and continued through the end of October.
  • Weekly cash burn remained in-line with the targeted $0.5 million per week average.
  • Constructive lease discussions resulted in the closure of approximately 25-30 shops and the renegotiation of 280 leases as of early November.

Headline financials

Total Revenue

$72.7M

Previous: $104M-30.3%
EPS (adj)

-$0.42

Previous: $0.04-1150.0%
Capital Expenditures

-$8.7M

Previous: -$9.53M+8.7%
Free Cash Flow

-$16.4M

Previous: $330K-5083.6%
Net Income

-$13.4M

Previous: -$2.36M-469.5%
Operating Income

-$16.1M

Previous: -$2.14M-653.1%
Gross Profit

$12.2M

Previous: $29.4M-58.4%
Cash & Equivalents

$23.4M

Previous: $15.8M+48.5%
Total Assets

$307M

Previous: $334M-8.0%
Stock-Based Comp

$1.61M

Previous: $446K+260.5%

Revenue & EPS history

Potbelly · Revenue · Quarterly

$72.7M

Q3 2020-30.3%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Potbelly · $72.7M total across 2 segments · Q3 2020

  • Sandwich shop sales, net
    $72.2M
  • Franchise royalties, fees and rent income
    $474K

Forward guidance

Potbelly is launching a corporate expense optimization and restructuring focused on driving efficiencies, rightsizing General & Administrative expenses, and better aligning cost structure to new footprint and strategic direction.

Tailwinds

  • Corporate expense optimization and restructuring focused on driving efficiencies.
  • Rightsizing General & Administrative expenses including staff reductions above the shop level to be completed by year end.
  • Better aligning cost structure to new footprint and strategic direction.
  • Expected reduction of annual G&A costs by $3.5 million to $4.0 million.
  • Consolidation of franchise and company locations support services into one unit.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

+0.7%

Avg return

Earnings day

+4.9%

Avg return

5 days after

+0.9%

Avg return

30 days after

49%

27 / 55 earnings

Positive

+19.0%

Q4 2014

Best reaction

-24.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025+13.1%+11.7%+10.0%
Q1 2025+18.2%+20.4%+27.1%
Q4 2024-18.2%-17.6%-25.3%
Q3 2024+18.5%+26.7%+19.0%
Q2 2024+8.4%+15.7%+13.7%
Q1 2024-5.9%-10.7%-18.5%
Q4 2023-3.9%-11.5%-19.7%
Q3 2023+9.7%
Q2 2023-4.7%
Q1 2023-14.7%
Q4 2022+9.4%
Q3 2022+2.9%
Q2 2022+2.7%
Q1 2022-5.4%
Q4 2021+6.9%
Q3 2021-0.2%
Q2 2021-0.8%
Q1 2021+17.2%
Q4 2020+3.6%
Q3 2020+0.0%
Q2 2020+18.7%
Q1 2020-24.7%
Q4 2019-3.3%
Q3 2019+11.5%
Q2 2019-9.5%
Q1 2019-22.5%
Q4 2018-0.5%
Q3 2018-9.0%
Q2 2018+1.2%
Q1 2018+5.7%
Q4 2017+8.4%
Q3 2017+2.6%
Q2 2017+0.5%
Q1 2017-17.9%
Q4 2016+4.2%
Q3 2016-3.4%
Q2 2016+2.6%
Q1 2016-6.8%
Q4 2015+15.9%
Q3 2015-0.5%
Q2 2015-10.2%
Q1 2015-2.1%
Q4 2014+19.0%
Q3 2014+9.1%
Q2 2014+3.5%
Q1 2013-2.7%
Q1 2014-2.2%
Q4 2011-2.4%
Q1 2012-2.4%
Q2 2013-2.4%
Q2 2012-2.4%
Q4 2013-9.5%
Q4 2012+0.4%
Q3 2012+0.4%
Q3 2013+13.9%

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