Potbelly Corp.’s same-store sales rose 0.5 percent during the third quarter ended Sept. 29, marking the operator’s first positive quarter for same-store sales this year, Potbelly said Tuesday.
However, net income for the Chicago-based fast-casual operator fell 10 percent, to $1.9 million, or 6 cents per share, from $2.2 million, or 12 cents per share, the previous year. Revenue rose 8.5 percent, to $84.7 million.
“We feel good about the progress we made in the third quarter,” Potbelly CEO Aylwin Lewis said in a statement. Sales improved sequentially throughout the quarter, he said, adding, “We know we have plenty of work to do to sustain our stated long-term target of low-single-digit comparable-store sales growth.”
Adjusted EBITDA increased 10.1 percent during the quarter, to $11 million, from $10 million last year. Potbelly opened eight new restaurants during the quarter, seven of them company owned, including its first location in Denver. The company is on track to open 40 to 48 restaurants this year.
Potbelly’s stock has fallen 58 percent since hitting a high of $31.95 in October 2013. Its stock is down 45 percent this year, though it rose 4 percent Tuesday in anticipation of the earnings announcement, and was up more than 1 percent after hours.
The company expects net income per share for the full year to range from 18 cents to 21 cents. It also anticipates same-store sales for the full year to be in the negative to low-single-digit range.
3Q NET INCOME
Result: $1.9 million, or 7 cents per share% Decrease: 10% (from $2.2 million, or 12 cents per share)
3Q REVENUE
Result: $84.3 million% Increase: 8.5% (from $77.7 million)
3Q SAME-STORE SALES
% Increase corporate: 0.5%Source: Company report
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Contact Jonathan Maze at [email protected].
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