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Potbelly Corporation (PBPB - Free Report) reported fourth-quarter fiscal 2022 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat. Earnings missed estimates for the second straight quarter. Following the results, the company’s shares declined 2.6% year over year.
The company reported adjusted earnings of 9 cents, missing the Zacks Consensus Estimate of 13 cents. In the prior year quarter, it reported an adjusted loss per share of 6 cents. Revenues were $120.2 million, surpassing the Zacks Consensus Estimate of $119 million, and increased 17% year over year.
In fourth-quarter fiscal 2022, the company reported same-store sales growth of 18.9% due to robust digital marketing and traffic, and continuous momentum in Central Business District shops. Same-store sales increased for the seventh straight quarter.
Then again, sandwich-shop sales, net as well as franchise royalties and fees, increased to $119 million from $102 million in the prior-year quarter.
Potbelly Corporation Price, Consensus and EPS Surprise
Total expenses in the quarter were $116.9 million, up 11.3% year over year. Food, beverage and packaging costs rose to $34.2 million from $29 million reported in the prior-year quarter. Labor and related expenses increased 9.7% year over year to $36.7 million.
Adjusted EBITDA for the reported quarter amounted to $7.5 million compared with $2.6 million reported in the year-ago quarter.
Balance Sheet
As of Dec 25, 2022, cash and cash equivalents totaled $15.6 million compared with $14.4 million as of Dec 26, 2021. Total long-term debt at the end of the reported quarter decreased to $8.6 million from $17.5 million at the end of Dec 26, 2021.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of CHUY have gained 15.2% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 10.8% and 16.1%, respectively, from the year-ago period’s reported levels.
Arcos Dorados currently carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 11.6%. Shares of the company have gained 6.1% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 8.1% and 4.2%, respectively, from the year-ago period’s reported levels.
Brinker currently carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has declined 6.2% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggests growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.
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Potbelly (PBPB) Q4 Earnings Miss, Revenues Beat Estimates
Potbelly Corporation (PBPB - Free Report) reported fourth-quarter fiscal 2022 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat. Earnings missed estimates for the second straight quarter. Following the results, the company’s shares declined 2.6% year over year.
The company reported adjusted earnings of 9 cents, missing the Zacks Consensus Estimate of 13 cents. In the prior year quarter, it reported an adjusted loss per share of 6 cents. Revenues were $120.2 million, surpassing the Zacks Consensus Estimate of $119 million, and increased 17% year over year.
In fourth-quarter fiscal 2022, the company reported same-store sales growth of 18.9% due to robust digital marketing and traffic, and continuous momentum in Central Business District shops. Same-store sales increased for the seventh straight quarter.
Then again, sandwich-shop sales, net as well as franchise royalties and fees, increased to $119 million from $102 million in the prior-year quarter.
Potbelly Corporation Price, Consensus and EPS Surprise
Potbelly Corporation price-consensus-eps-surprise-chart | Potbelly Corporation Quote
Operating Highlights
Total expenses in the quarter were $116.9 million, up 11.3% year over year. Food, beverage and packaging costs rose to $34.2 million from $29 million reported in the prior-year quarter. Labor and related expenses increased 9.7% year over year to $36.7 million.
Adjusted EBITDA for the reported quarter amounted to $7.5 million compared with $2.6 million reported in the year-ago quarter.
Balance Sheet
As of Dec 25, 2022, cash and cash equivalents totaled $15.6 million compared with $14.4 million as of Dec 26, 2021. Total long-term debt at the end of the reported quarter decreased to $8.6 million from $17.5 million at the end of Dec 26, 2021.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of CHUY have gained 15.2% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 10.8% and 16.1%, respectively, from the year-ago period’s reported levels.
Arcos Dorados currently carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 11.6%. Shares of the company have gained 6.1% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 8.1% and 4.2%, respectively, from the year-ago period’s reported levels.
Brinker currently carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has declined 6.2% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggests growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.