Potbelly Delivers Scrumptious Earnings for Its First Quarter
Potbelly reported better-than-expected fiscal 2014 first-quarter earnings after the market closed today. For the period ended March 30, Potbelly generated adjusted earnings of $0.01 per diluted share, up 128% from the same period a year ago in which earnings were flat. That beat analysts' EPS expectations of $0.00 for the quarter. Potbelly's first-quarter revenue increased 7.5% to $73.9 million, up from $68.7 million during the first quarter of fiscal 2013. That was pretty much in line with Wall Street's estimates for revenue of $73.6 million in the period.
Potbelly opened 11 new restaurants during the first quarter, consisting of nine corporate-owned locations and two franchised shops. However, the sandwich chain blamed "significant weather" for a 2.2% decline in company owned same-store sales in the quarter.
"We remain confident in the fundamentals of our business and remain on track to achieve our previously disclosed guidance of low single-digit comps, 25%-35% adjusted net income growth and 40-48 total new shop openings for the fiscal year," said Aylwin Lewis, Potbelly's chief executive.
In the quarters to come, Potbelly plans to expand into the Denver market and introduce new Flats sandwich options. Shares of Potbelly were up more than 2% in after hours trading around $16.90 as of 5 p.m.
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