Potbelly First Quarter Sales Grow 1.9% with Digital Business Increase

By Daniella Parra

Potbelly Corp. (Nasdaq: PBPB), the neighborhood sandwich shop concept, said first quarter system-wide sales grew 1.9% and its digital business increased year-over-year, representing 40% of total sales.

Total revenue decreased by 6% but adjusted EBITDA increased 2.2% to $5.7 million, the company said.

“In terms of profitability, we successfully managed both restaurant-level and corporate costs, driving a 150-basis point expansion in shop-level margins as well as strong corporate profitability with adjusted EBITDA of $5.7 million,” CEO Bob Wright said. “On the development front, our franchise sales team added 32 additional commitments to our pipeline during the quarter leading to a 26% increase in open and committed shops year-over-year.”

Potbelly also announced a $20 million share repurchase program and a new restaurant design prototype.