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Potbelly Corporation (PBPB-2.25%) has submitted its 10-K filing for the fiscal year ended December 29, 2024.
The filing details a decrease in net sandwich shop sales to $446.2 million from $482.2 million in the previous year, primarily due to refranchising efforts and an additional week in the prior fiscal year.
Franchise royalties, fees, and rental income increased to $16.4 million, driven by additional franchise fees and new franchise locations.
Food, beverage, and packaging costs decreased to $120.0 million, attributed to lower costs from refranchised shops and decreased protein costs.
Labor and related expenses decreased to $129.3 million, influenced by refranchised shops and a decrease in incentive compensation.
The company reported a net income of $40.3 million, a significant increase from $5.1 million in the prior year, largely due to a $35.3 million valuation allowance release.
Potbelly ended the fiscal year with a cash balance of $11.7 million and total liquidity of $37.7 million.
The company repaid its Term Loan and entered into a new Revolving Facility with Wintrust Bank, N.A., providing a $30 million credit facility.
Potbelly's Franchise Growth Acceleration Initiative continued with the sale of one company-operated shop and commitments for new franchise development.
The company recognized a loss on extinguishment of debt of $2.4 million due to the termination of its Term Loan.
Potbelly's stock repurchase program authorized a new $20 million repurchase plan, replacing the previous program.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Potbelly Corporation annual 10-K report dated March 6, 2025. To report an error, please email earnings@qz.com.