Potbelly Corp. reported growth in system-wide sales during the first quarter, with an increase of 1.9%. Despite a 6% decrease in total revenue, their adjusted EBITDA increased by 2.2% to $5.7 million. This was due to the company’s success in managing both restaurant-level and corporate costs, resulting in a 150-basis point expansion in shop-level margins.
CEO Bob Wright also highlighted the strong corporate profitability of Potbelly, with an adjusted EBITDA of $5.7 million. The franchise sales team added 32 commitments to the pipeline, leading to a 26% increase in open and committed shops compared to the previous year.
In response to their performance, Potbelly announced a $20 million share repurchase program and unveiled a new restaurant design prototype. For more information, please visit Exec Edge at executives-edge.com or contact them at Editor@executives-edge.com.