PBPB Stock Falls as Weather Keeps Potbelly Customers Away

by Christopher Freeburn | February 19, 2014 10:44 am

Potbelly stock NASDAQ:PBPB[1]On Tuesday, sandwich chain Potbelly (PBPB[2]) reported lower-than-expected fourth-quarter sales[3], 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.

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[4]. 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.

  1. [Image]: http://investorplace.com/wp-content/uploads/2013/10/PotbellyPromo.jpg
  2. PBPB: http://studio-5.financialcontent.com/investplace/quote?Symbol=PBPB
  3. lower-than-expected fourth-quarter sales: http://online.wsj.com/news/articles/SB10001424052702303945704579391320658158930
  4. 42 new Potbelly locations opened in fiscal 2013: http://finance.yahoo.com/blogs/the-exchange/potbelly-s-dreadful-public-slump-continues-after-earnings-155611860.html

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