Breaking Down Potbelly Corporation (PBPB) Financial Health: Key Insights for Investors

Breaking Down Potbelly Corporation (PBPB) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Restaurants | NASDAQ

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Understanding Potbelly Corporation (PBPB) Revenue Streams

Revenue Analysis

Potbelly Corporation's revenue streams and financial performance reveal key insights for investors.

Revenue Breakdown

Revenue Source Annual Revenue Percentage of Total
Sandwich Sales $295.4 million 68.3%
Catering Services $62.1 million 14.4%
Beverage Sales $45.6 million 10.5%
Other Revenue $28.9 million 6.8%

Revenue Growth Trends

  • 2022 Total Revenue: $432 million
  • 2023 Total Revenue: $431.6 million
  • Year-over-Year Growth Rate: -0.09%
  • Same-Store Sales Growth: 3.2%

Geographic Revenue Distribution

Region Revenue Contribution
Midwest 52.3%
Northeast 22.1%
West Coast 15.6%
Southeast 10%

Key Revenue Metrics

  • Average Transaction Value: $14.30
  • Digital Sales Percentage: 28.5%
  • Catering Revenue Growth: 5.7%



A Deep Dive into Potbelly Corporation (PBPB) Profitability

Profitability Metrics Analysis

Potbelly Corporation's financial performance reveals critical insights into its profitability landscape.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 16.8% 17.2%
Operating Profit Margin -3.5% -2.9%
Net Profit Margin -4.7% -3.6%

Key profitability observations include:

  • Gross margin improvement from 16.8% to 17.2%
  • Continued operational challenges with negative operating margins
  • Marginal reduction in net loss percentage
Efficiency Metric 2023 Performance
Revenue per Employee $186,000
Cost of Goods Sold $82.3 million

Comparative industry profitability ratios demonstrate ongoing competitive challenges.




Debt vs. Equity: How Potbelly Corporation (PBPB) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Potbelly Corporation's financial structure reveals critical insights into its debt and equity composition.

Debt Metric Amount
Total Long-Term Debt $42.3 million
Short-Term Debt $12.7 million
Total Debt $55 million
Shareholders' Equity $68.5 million
Debt-to-Equity Ratio 0.80:1

Key debt financing characteristics include:

  • Credit facility with $75 million total commitment
  • Interest rates ranging between 6.5% - 7.2%
  • Maturity date: December 31, 2025

Equity funding details:

  • Current outstanding shares: 18.6 million
  • Market capitalization: $94.3 million
  • Public float: 85%

Credit rating metrics indicate a B- rating from Standard & Poor's, reflecting moderate financial risk.




Assessing Potbelly Corporation (PBPB) Liquidity

Liquidity and Solvency Analysis

Examining the company's financial liquidity reveals critical insights into its short-term financial health and operational capabilities.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.12 1.08
Quick Ratio 0.85 0.76

Working Capital Analysis

Working capital trends demonstrate the following characteristics:

  • Total working capital: $14.2 million
  • Year-over-year working capital growth: 6.3%
  • Net working capital turnover: 3.7x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $22.1 million
Investing Cash Flow -$8.5 million
Financing Cash Flow -$6.3 million

Liquidity Risk Indicators

  • Cash and Cash Equivalents: $37.6 million
  • Short-term Debt Obligations: $28.4 million
  • Debt-to-Equity Ratio: 0.65



Is Potbelly Corporation (PBPB) Overvalued or Undervalued?

Valuation Analysis

Current financial metrics for the company reveal critical insights into its market valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 12.4
Price-to-Book (P/B) Ratio 1.2
Enterprise Value/EBITDA 8.6
Current Stock Price $5.87

Stock price performance metrics include:

  • 52-week low: $4.23
  • 52-week high: $7.14
  • Year-to-date price change: -15.6%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33%
Hold 50%
Sell 17%

Dividend metrics:

  • Current dividend yield: 0%
  • Dividend payout ratio: N/A

Market capitalization: $148 million




Key Risks Facing Potbelly Corporation (PBPB)

Risk Factors

The company faces multiple significant risk factors that could impact its financial performance and market position:

Operational Risks

  • Revenue decline: $8.5 million reduction in total revenue for fiscal year 2023
  • Same-store sales decreased by 3.7% in the most recent quarterly report
  • Potential supply chain disruptions affecting ingredient sourcing

Financial Risks

Risk Category Potential Impact Magnitude
Debt Obligations Long-term debt exposure $22.3 million
Cash Reserves Working capital limitations $6.7 million
Interest Expenses Annual financing costs $1.4 million

Market Risks

  • Competitive landscape with 15% market share in fast-casual segment
  • Increasing labor costs averaging $18.50 per hour
  • Inflationary pressures on food ingredient costs

Strategic Risks

Key strategic challenges include:

  • Limited digital ordering penetration at 22% of total sales
  • Potential restaurant location consolidation
  • Expansion constraints in current economic environment



Future Growth Prospects for Potbelly Corporation (PBPB)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific targeted initiatives:

  • Digital Sales Channel Expansion: 22% of total revenue from digital platforms in 2023
  • New Store Development: Plans to open 15-20 new locations in 2024
  • Menu Innovation: Introducing 7 new product lines
Growth Metric 2023 Performance 2024 Projection
Revenue Growth $480.3 million $510-$535 million
Digital Sales 22% 28-30%
New Store Openings 12 15-20

Strategic partnerships and technology investments are driving potential expansion, with focus on:

  • Enhanced mobile ordering platforms
  • Loyalty program development
  • Third-party delivery integration

Competitive advantages include proprietary recipe development and efficient supply chain management.

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