First-quarter profit doubled at Potbelly Corp. due to new unit development and higher same-store sales, the company said Tuesday.
Net income in the quarter ended March 27 was $1.1 million, or 4 cents per share, rising from $531,000, or 2 cents per share, in the same period a year ago.
The profit increase came as Potbelly reported same-store sales growth of 3.7 percent at company-operated locations.
“We had a good start to the year, as the positive momentum we experienced throughout 2015 continued into the first quarter,” Aylwin Lewis, Potbelly CEO, said in a statement. “Our strong business fundamentals are reflected in the results. The results trajectory is excellent over the long term.”
Revenue increased 11.9 percent, to $96 million, from $85.8 million the previous year. The company opened seven new locations in the period, five of which are company-operated locations and two of which franchisees own.
Potbelly expects to build 45 to 50 company-owned locations this year, and another 10 to 15 franchised units.
Labor costs rose slightly as a percentage of sales, to 29.3 percent, from 28.7 percent in the same period a year ago. But food costs fell to 27.4 percent of revenue, from 28.4 percent.
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