Potbelly Corporation (PBPB) Bundle
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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