The following is a summary of the Potbelly Corporation (PBPB) Q1 2024 Earnings Call Transcript:
Financial Performance:
Potbelly Corporation reported Q1 revenues of $111.2 million, a decrease of approximately 6.0% primarily due to the short-term revenue impact of the previous year's refranchising transaction.
The company experienced improvements in food, beverage, and packaging costs, which made up 27.2% of shop sales, a 70 basis point improvement over the prior-year period.
Labor expenses improved to 30.0% of sales, a 120 basis point betterment from the previous year.
The net loss for the quarter was reported at $2.8 million, majorly due to the accounting treatment of debt refinancing. But the adjusted net income stood at $0.2 million.
The Potbelly's Board of Directors authorized a $20 million share repurchase program, indicating confidence in business sustainability and strong balance sheet.
Business Progress:
The franchise sales team added 32 additional commitments to the pipeline during the quarter, and three new shops were opened.
Digital sales accounted for about 41% of total shop sales, a 200 basis point increase YoY because of progress in their Perks loyalty program, which saw a 36% YoY rise in active members.
The company set a goal of attaining 10% unit growth and mid- to high-single-digit adjusted EBITDA growth for FY 2024.
They plan to open more franchises with new, digitally-centric shop prototypes expected to launch in Arkansas soon.
The company mentioned progress in digitalisation, reduction of exposure to third-party delivery, and labour optimization, with plans to expand their digital kitchen and operations.
More details: Potbelly IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.