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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