Potbelly (PBPB) Beats on Q3 Earnings, Revenues Lag Marginally
Potbelly Corporation PBPB through its subsidiaries, owns and operates Potbelly Sandwich Works sandwich shops in the United States. It also sells and administers franchises of Potbelly Sandwich Works sandwich shops.
To boost the top line, the company has been undertaking various initiatives. Apart from focusing on improved digital innovation and distinguished menu offerings, the company is focused on strengthening its brand name through various advertising strategies. Additionally, the company’s continual expansion plans are expected to boost sales, going forward.
However, a soft consumer spending environment in the U.S. restaurant space, increased labor expenses as well as the company’s rising cost structure raises concern.
Investors should note that the consensus estimate for PBPB has been moving slightly downwards over the last 60 days. Nevertheless, PBPB’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 37.74%. However, revenues posted positive surprises in just one of the trailing four quarters.
PBPB currently has a Zacks Rank #4 (Sell) but that could change following Potbelly’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PBPB beats on earnings. Our consensus earnings estimate called for earnings per share of 6 cents per share, and the company reported adjusted earnings of 7 cents per share.
Revenues: PBPB reported revenues of $106.1 billion. This marginally missed our consensus estimate of $106.7 million.
Key Stats to Note: In third-quarter fiscal 2017, company-operated comps decreased 4.8%.
Stock Price Impact: In-active in pre-market trading.
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