PBPB Stock Falls as Weather Keeps Potbelly Customers Away

The chain's expenses rose sharply last quarter


PotbellyPromo PBPB Stock Falls as Weather Keeps Potbelly Customers AwayOn Tuesday, sandwich chain Potbelly (PBPB) reported lower-than-expected fourth-quarter sales, sending PBPB stock tumbling almost 10% in Wednesday morning trading.

Potbelly reported quarterly revenue of $74.8 million, up 1.7% from the year-ago period but shy of the analyst outlook for $76 million on the top line. Meanwhile, PBPB posted a loss of $3.68 million vs. actually earning $18.5 million in the year-ago period. However, adjusted earnings of 6 cents per share, which were down 50%, did top expectations of 4 cents.

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Same-store sales were higher by just 0.7% year-over-year factoring out 2012’s extra week, which the company blamed on wintry weather. Also, expenses were higher by 14%, to $81.4 million.

All told, 42 new Potbelly locations opened in fiscal 2013. PBPB expects to open between 40 and 48 new locations this year.

Despite today’s losses, PBPB still remains 45% above its October IPO pricing of $14, but more than 35% off shares’ early-October highs above $32.

Article printed from InvestorPlace Media, http://investorplace.com/2014/02/pbpb-stock-falls-weather-keeps-potbelly-customers-away/.

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