PBPB - Potbelly Corporation: Stock Is Not Discounted Enough To Account For Lingering Pandemic Impact
- Potbelly delivered fairly strong results in January and February, and was on track for its first positive comps year since 2016.
- The pandemic has seriously affected Potbelly's results, with -21% comps in Q3 2020 and only slightly better comps in October.
- Potbelly has enough liquidity to weather the pandemic. It is taking on some debt in order to do so though.
- Due to the additional debt and the uncertainty of the post-pandemic recovery, Potbelly's stock is risky at current levels.
- It is currently trading around what it was trading in February 2020.
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Potbelly Corporation: Stock Is Not Discounted Enough To Account For Lingering Pandemic Impact