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Potbelly (PBPB) investor relations material

Potbelly Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • System-wide sales grew 6.7% year-over-year to $154.2M, with same-store sales up 3.2% and positive traffic growth.

  • Adjusted EBITDA increased 13% to $9.6M, at the high end of guidance, and shop-level margin improved to 16.7% from 15.7% year-over-year.

  • Eight new shops opened and 54 new franchise shop commitments signed, bringing total open and committed shops to 816.

  • Digital sales represented over 41% of total shop sales, supported by a new website and app launch.

  • Continued focus on menu innovation, digital investments, and prudent cost controls to drive future growth.

Financial highlights

  • Total revenues rose 3.4% year-over-year to $123.7M, with company-operated shop sales at $118.4M and franchise revenue up 27.7% to $5.3M.

  • Adjusted EBITDA for Q2 2025 was $9.6M (7.8% of revenue), up from $8.5M last year.

  • Net income was $2.5M; adjusted net income $2.9M, with prior year net income including a $31.3M one-time tax benefit.

  • Average weekly sales per shop were $27,040, up from $26,110 year-over-year.

  • Cash and cash equivalents at quarter-end were $17.0M, with total liquidity of $46.2M.

Outlook and guidance

  • Raised full-year 2025 guidance: same-store sales growth of 2–3%, at least 38 new shops, and adjusted EBITDA of $34–35M.

  • Q3 2025 guidance: same-store sales growth of 3.25–4.25%, at least 8 new units, and adjusted EBITDA of $9–10M.

  • Management expects sufficient liquidity for at least the next twelve months, supported by cash flow and a $30M revolving credit facility.

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Frequently asked questions

Potbelly Corporation is a restaurant company that operates and franchises a chain of sandwich shops. The company specializes in serving made-to-order sandwiches, salads, soups, and desserts, often featuring fresh and high-quality ingredients. Potbelly shops are known for their casual dining atmosphere and also offer catering services. The company is headquartered in Chicago, Illinois, and its shares are listed on the NASDAQ.

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