Potbelly (PBPB) 27th Annual ICR Conference 2025 summary

Brand positioning and strategy

• Executed a brand transition focused on value, food quality, digital investment, and operational excellence, resulting in strong performance despite a challenging macro environment.

• Achieved stronger-than-expected same-store sales and Adjusted EBITDA in Q4, with nearly 100 franchise units open and 727 units open or under agreement.

• Five-pillar strategy emphasizes value, digital engagement, and franchise growth, positioning the brand for continued expansion.

• Maintained focus on consumer needs, especially for financially pressured customers, with targeted value offerings.

• Franchise strategy has shifted from planning to execution, driving new unit momentum for 2025.

Product innovation and value initiatives

• Introduced new menu items, including slow-cooked pulled pork and Potbelly Refreshers, which contributed to sales outperformance.

• Maintained a $7.99 value combo without price increases since July, supporting customer value perception.

• Adjusted advertising spend to accelerate growth in key business areas.

• Value scores and likelihood to return increased significantly for customers using the $7.99 combo.

• Franchisees benefit from efficient protein choices in value offerings, supporting wide adoption.

Digital engagement and loyalty program

• Digital and loyalty efforts, including the Perks program, have increased customer frequency and engagement.

• Perks program reworked to offer more redemption options, stimulating more frequent and varied use.

• Plans to invest further in digital platforms and automate segmentation for personalized marketing.

• Redemption rates for Perks rewards align with projections, with ongoing learning to enhance program effectiveness.

• Digital customers show increased visit frequency across all segments.