Shares of Chicago-based sandwich chain Potbelly ( NASDAQ: PBPB ) slid on Friday despite the better than expected Q4 sales
The restaurant operator reported $0.09 in adjusted earnings per share on $120.2M in revenue for the fourth quarter. The Street expected the company to post $0.13 in earnings per share on $116.6M in revenue. Same store sales rocketed 18.9% higher from the prior year quarter.
“We had exceptionally strong fourth quarter results, generating record quarterly revenue and improved profitability,” CEO Bob Wright commented. “These results were driven by robust sales driven by traffic expansion and measured price increases, attesting to outsized demand despite macroeconomic uncertainty.”
He added that digital engagement rose above company expectations, while “continued momentum in catering” and strong performance for airport locations helped drive strong results. Margins also expanded despite persistent inflationary impacts and wage inflation. Management expects to continue strong performance heading into 2023.
“We exited the year with excellent momentum, which we expect to continue through 2023,” CFO Steve Cirulis said. “We anticipate both revenue and profitability to grow in the upcoming first quarter and for the full year 2023, driven by continued execution against our Five-pillar strategy, including accelerated progress against our franchising and refranchising growth initiatives.”
Management expects Q1 2023 same store sales to be up 18.5% to 20.5% and adjusted EBITDA for the quarter to reach a range of $4M to $5M The chain sees high single-digit growth for FY 2023 same store sales with shop-level margins in the low-teens, up from 10.5% in 2022.
Shares of Potbelly ( PBPB ) slipped 2.18% after the market open on Friday.
Read the earnings call transcript .
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Potbelly stock slides on EPS miss