Potbelly Q4 Earnings Surpass Estimates, Revenues Fall Y/Y

Potbelly Corporation PBPB reported fourth-quarter fiscal 2024, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line declined year over year while the bottom line increased from the prior-year quarter’s figure. Following the results, the company’s shares fell 9.4% during the after-hours trading session yesterday.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.PBPB’s Q4 Earnings & RevenuesFor the fiscal fourth quarter, the company reported adjusted earnings per share (EPS) of 13 cents, beating the Zacks Consensus Estimate of 6 cents. The company reported an adjusted EPS of 2 cents in the prior-year quarter.Quarterly revenues of $116.6 million missed the consensus mark by 0.2%. The top line declined 7.3% on a year-over-year basis. The decline was largely due to the absence of a 53rd week in 2024 and the company's ongoing refranchising strategy, which has involved selling 34 company-owned locations since second-quarter fiscal 2023.Potbelly Corporation Price, Consensus and EPS Surprise Potbelly Corporation price-consensus-eps-surprise-chart | Potbelly Corporation QuoteDuring the quarter, company-operated comparable store sales increased 0.3% year over year compared with the 6.3% rise reported in the prior-year quarter.PBPB Q4 Operating HighlightsDuring the quarter under review, labor and related expenses — as a percentage of sales — were 28.9%, compared with 28.8% reported in the year-ago quarter.Occupancy costs (as a percentage of sales) were 10.8% compared with 10.5% reported in the year-ago quarter.General and administrative expenses (as a percentage of sales) of 11.1% decreased by 80 bps on a year-over-year basis.During the quarter, shop-level profit margin came in at 16% compared with 15.7% reported in the prior-year quarter.Adjusted net income during the quarter came in at $3.9 million compared with $0.7 million reported in the prior-year quarter.Adjusted EBITDA in the fiscal fourth quarter came in at $9.7 million compared with $7.5 million reported in the prior-year quarter.PBPB’s Balance SheetAs of Dec. 29, 2024, cash and cash equivalents totaled $11.7 million compared with $33.8 million as of Dec. 31, 2023. At the end of the fiscal fourth quarter, long-term debt, net of the current portion, amounted to $4 million compared with $19.2 million at the end of the fourth quarter of fiscal 2023.PBPB’s Fiscal 2024 HighlightsTotal revenues in fiscal 2024 amounted to $462.6 million compared with $491.4 million in fiscal 2023.Adjusted EBITDA in fiscal 2024 totaled $32.6 million compared with $28.3 million in fiscal 2023.In fiscal 2024, adjusted EPS came in at 30 cents compared with 15 cents reported in the previous year.PBPB’s Fiscal 2025 OutlookFor first-quarter fiscal 2025, PBPB anticipates same-store sales to decline in the range of 0.5% and 1.5%. It expects adjusted EBITDA to range between $3.5 million and $4.5 million.In fiscal 2025, the company expects same-store sales to grow between 1.5% and 2.5%. The company forecasts adjusted EBITDA between $33 million and $34 million. PBPB plans to open at least 38 new locations in the fiscal 2025.PBPB’s Zacks Rank & Other Key PicksPotbelly currently has a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.Boot Barn Holdings, Inc. BOOT currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.BOOT has a trailing four-quarter earnings surprise of 7.2%, on average. The stock has declined 16.4% in the past six months. The Zacks Consensus Estimate for BOOT’s 2025 sales and EPS indicates growth of 14.9% and 21.4%, respectively, from the year-ago period’s levels.Genesco Inc. GCO presently flaunts a Zacks Rank of 1. GCO has a trailing four-quarter earnings surprise of 36.9%, on average. The stock has surged 25.7% in the past six months.The consensus estimate for GCO’s 2025 sales and EPS indicates growth of 1.7% and 67.9%, respectively, from the year-ago period’s levels.Nordstrom, Inc. JWN currently sports a Zacks Rank of 1. JWN has a trailing four-quarter earnings surprise of negative 26.1%, on average. The stock has risen 10.5% in the past six months.The Zacks Consensus Estimate for JWN’s fiscal 2026 sales indicates a rise of 1.9% from the year-ago period’s levels.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordstrom, Inc. (JWN): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Potbelly Corporation (PBPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks