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Potbelly (PBPB) Boosts Offerings With Revamped Loyalty Program
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Potbelly Corporation (PBPB - Free Report) recently unveiled an overhauled Potbelly Perks loyalty program to enhance customer experience and boost offerings. The program simplifies the process of earning and redeeming rewards, making it user-friendly.
The redesigned program speeds up reward completion, broadens the selection of menu items (available for redemption) and replaces the previous Points system with bankable Coins.
PBPB emphasized improvements in the Potbelly App and website, giving them a distinct new look. Upon navigating the Perks page, customers will encounter various novel elements of the complimentary membership program, including revamped rewards and the visually appealing and playful Potbelly Coins.
Members will continue to earn rewards in the form of Coins based on their spending per visit. The updated structure allows redemption to commence at 200 Coins in contrast to the previous model of accumulating 1000 points. The expanded range of menu items available through Perks Coins now includes sides, cookies, shakes, fountain drinks, and more, in addition to entrées.
Increased Focus on Digital Business
During the third quarter of 2023, the company's digital business contributed approximately 37% to total shop sales, up nearly 150 basis points year over year. The upside was driven mainly by improvements to the Perks Loyalty Program.
During the quarter, a significant shift in the digital business was observed, with a transition from third-party channels toward an increase in orders originating from Potbelly-owned channels, including the app, website, and Perks program. The company reported growth in the distinctive in-shop fast casual dining and order options facilitated by the Potbelly digital platform.
The company emphasized the deployment of Potbelly Digital Kitchen (PDK) across the entire system, covering all new franchise locations. The operational benefits of PDK, including sustained digital business growth, improved throughput handling, operational efficiency and an enhanced customer experience, strategically contribute to driving foot traffic. This aligns with the company's foundational approach to sales growth.
Image Source: Zacks Investment Research
Shares of the company have gained 52.4% in the past three months compared with the industry’s 11.5% growth.
Zacks Rank & Other Key Picks
Potbelly currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector are:
Arcos Dorados Holdings Inc. (ARCO - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 28.3% on average. Shares of ARCO have surged 37.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.
Chuy's Holdings, Inc. (CHUY - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 24.8%, on average. The stock has declined 0.4% in the past year.
The Zacks Consensus Estimate for CHUY’s 2024 sales and EPS suggests rises of 4.2% and 1%, respectively, from the year-ago period’s levels.
Darden Restaurants, Inc. (DRI - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 4.2%, on average. Shares of DRI have increased 10.7% in the past year.
The Zacks Consensus Estimate for DRI’s 2024 sales and EPS indicates 9.9% and 10.9% growth, respectively, from the year-ago period’s levels.
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Potbelly (PBPB) Boosts Offerings With Revamped Loyalty Program
Potbelly Corporation (PBPB - Free Report) recently unveiled an overhauled Potbelly Perks loyalty program to enhance customer experience and boost offerings. The program simplifies the process of earning and redeeming rewards, making it user-friendly.
The redesigned program speeds up reward completion, broadens the selection of menu items (available for redemption) and replaces the previous Points system with bankable Coins.
PBPB emphasized improvements in the Potbelly App and website, giving them a distinct new look. Upon navigating the Perks page, customers will encounter various novel elements of the complimentary membership program, including revamped rewards and the visually appealing and playful Potbelly Coins.
Members will continue to earn rewards in the form of Coins based on their spending per visit. The updated structure allows redemption to commence at 200 Coins in contrast to the previous model of accumulating 1000 points. The expanded range of menu items available through Perks Coins now includes sides, cookies, shakes, fountain drinks, and more, in addition to entrées.
Increased Focus on Digital Business
During the third quarter of 2023, the company's digital business contributed approximately 37% to total shop sales, up nearly 150 basis points year over year. The upside was driven mainly by improvements to the Perks Loyalty Program.
During the quarter, a significant shift in the digital business was observed, with a transition from third-party channels toward an increase in orders originating from Potbelly-owned channels, including the app, website, and Perks program. The company reported growth in the distinctive in-shop fast casual dining and order options facilitated by the Potbelly digital platform.
The company emphasized the deployment of Potbelly Digital Kitchen (PDK) across the entire system, covering all new franchise locations. The operational benefits of PDK, including sustained digital business growth, improved throughput handling, operational efficiency and an enhanced customer experience, strategically contribute to driving foot traffic. This aligns with the company's foundational approach to sales growth.
Image Source: Zacks Investment Research
Shares of the company have gained 52.4% in the past three months compared with the industry’s 11.5% growth.
Zacks Rank & Other Key Picks
Potbelly currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Retail-Wholesale sector are:
Arcos Dorados Holdings Inc. (ARCO - Free Report) sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 28.3% on average. Shares of ARCO have surged 37.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.
Chuy's Holdings, Inc. (CHUY - Free Report) sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 24.8%, on average. The stock has declined 0.4% in the past year.
The Zacks Consensus Estimate for CHUY’s 2024 sales and EPS suggests rises of 4.2% and 1%, respectively, from the year-ago period’s levels.
Darden Restaurants, Inc. (DRI - Free Report) carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 4.2%, on average. Shares of DRI have increased 10.7% in the past year.
The Zacks Consensus Estimate for DRI’s 2024 sales and EPS indicates 9.9% and 10.9% growth, respectively, from the year-ago period’s levels.