Please ensure Javascript is enabled for purposes of website accessibility

Potbelly Brings Mixed Bag to the Earnings Table Today

By Tamara Walsh – Feb 18, 2014 at 4:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Potbelly reported fourth quarter and fiscal 2013 full-year results after the bell today. Here's what investors need to know.

Potbelly (PBPB 1.11%) reported fiscal 2013 fourth-quarter and full year earnings after the bell on Tuesday that proved a mixed bag for the sandwich chain. For the period ended Dec. 29, Potbelly posted a profit of $0.06 per share on net income of $1.9 million. That was two cents better than analyst estimates for earnings per share of $0.04 per share in the quarter. Unfortunately, revenue failed to impress. Quarterly revenue inched up 1.7% to $74.8 million, which was below estimates for $76 million in revenue.

This was Potbelly's second earnings report since going public in October. Shares of Potbelly popped more than 125% on the company's stock market debut; hitting $31 a share, up from the stock's initial offering price of $14 a share. However, Potbelly was trading lower after the market close today because of the fast-casual chain's latest earnings.

Potbelly opened nine company-operated stores and four franchised locations during the fourth quarter. However, same-store sales growth was done significantly. Comparable store sales increased just 0.7% in the period, which was a far cry from the company's 2.5% spike in comps that Potbelly reported in the third quarter. Potbelly's full-year comparable sales growth wasn't much better at 1.5%.

Despite a challenging fourth quarter, Potbelly's CEO Aylwin Lewis is optimistic about the company's future. "Our long-term growth plan remains very much on track to achieve at least 10% unit growth and 20% plus EPS growth on an annual basis," he said.

Shares of Potbelly were trading around $22.40 as of 4:35 p.m. on Tuesday.

 
 
 
 

Tamara Rutter and The Motley Fool have no position in any of the stocks mentioned. We Fools don't 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.

Stocks Mentioned

Potbelly Stock Quote
Potbelly
PBPB
$5.45 (1.11%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.