On 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.
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.