Potbelly Corporation reported financial results for the fourth quarter and full fiscal year ended December 25.
Key highlights for the 13 weeks ended December 25, 2016 compared to the 13 weeks ended December 27, 2015 include:
- Total revenues increased 7.6 percent to $102.4 million from $95.1 million.
- Company-operated comparable store sales increased 0.1 percent.
- Twenty-eight new shops opened, including twenty-five company-operated shops and three franchised shops.
Key highlights for the 52 weeks ended December 25, 2016 compared to the 52 weeks ended December 27, 2015 include:
- Total revenues increased 9.2 percent to $407.1 million from $372.8 million.
- Company-operated comparable store sales increased 1.4 percent.
- Fifty new shops opened, including forty company-operated shops and 10 franchised shops.
Aylwin Lewis, chairman and chief executive officer of Potbelly Corporation says, “During the fourth quarter, we delivered revenue growth of 8 percent and adjusted net income growth of 65 percent. For the full year, we achieved revenue growth of 9 percent and adjusted net income growth of 44 percent. Given the challenging operating environment, our full year comparable store sales growth of 1.4 percent fell short of our original expectations. However, we are proud of the combined effort of the men and women across the Potbelly Nation, which allowed us to deliver on our revised sales growth outlook, while protecting margins and growing earnings.”
Lewis says, “Our outlook for 2017 contemplates a continuation of the traffic trends that we saw at the end of the fourth quarter. Given current industry trends, it is imperative that we continue to explore opportunities to drive growth, while managing costs and optimizing our capital spend. Our current development plan includes an increased mix of franchise shops and moderated growth in company-operated shops. We believe the Potbelly brand is strong, and we will navigate these headwinds on the strength of our execution, innovation and culture. We are confident in the fundamentals of our business and remain committed to our long term goals.”
2017 Outlook
For the full fiscal year of 2017, management currently expects:
- 45 to 60 total new shop openings, including 30 to 40 company-operated shop openings.
- Flat Company-operated comparable store sales growth.
- An effective tax rate that is expected to range from 36 to 38 percent.
- Adjusted net income growth flat to 5 percent.
