Fast-casual sandwich shop operator Potbelly Corporation (NASDAQ:PBPB) held its IPO last October and, on hopes that the fast-casual chain might be the "next Chipotle Mexican Grill," shares more than doubled to a 52-week high of $33.90 from an initial IPO price of $14. Since then the shares have come back down to earth, falling by over 50%. Such a fall naturally leads investors to wonder if Wall Street perhaps went too far in selling off the still-fast-growing restaurant operator. Motley Fool Consumer Goods Analyst Sean O'Reilly explains why the sell-off was more than warranted and why after such a huge drop the shares likely reflect a more reasonable valuation. 

Sean O'Reilly has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.