Potbelly Earnings: What To Look For From PBPB

Casual sandwich chain Potbelly (NASDAQ:PBPB) will be reporting results tomorrow after the bell. Here’s what investors should know.

Potbelly met analysts’ revenue expectations last quarter, reporting revenues of $119.7 million, down 5.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ earnings estimates.

Is Potbelly a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Potbelly’s revenue to decline 6.3% year on year to $113.2 million, a reversal from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Potbelly has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Potbelly’s peers in the modern fast food segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Shake Shack delivered year-on-year revenue growth of 14.7%, meeting analysts’ expectations, and Chipotle reported revenues up 13%, in line with consensus estimates. Shake Shack traded up 7% following the results while Chipotle was down 7.8%.

Read our full analysis of Shake Shack’s results here and Chipotle’s results here.

There has been positive sentiment among investors in the modern fast food segment, with share prices up 6.8% on average over the last month. Potbelly is down 5% during the same time and is heading into earnings with an average analyst price target of $15.33 (compared to the current share price of $7.74).

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