Potbelly (PBPB) 45th Annual William Blair Growth Stock Conference summary

Company Overview and Brand Positioning

• Fast casual restaurant concept with a sandwich-based menu, emphasizing differentiation in a crowded sub shop market.

• Strong brand heritage, starting from a single Chicago location and expanding nationally, aiming to become the most loved sandwich brand in every neighborhood.

• Focus on quality food, unique customer experience, and craveable menu as core brand equities.

• Management highlights a shift from turnaround to growth phase since 2020.

• Investor thesis centers on straightforward growth and asset-light transformation.

Strategic Pillars and Innovation

• Five-pillar strategy established in 2020 remains unchanged, focusing on craveable quality, customer experience, digital engagement, franchise development, and value.

• Menu innovation includes new proteins, sandwiches, sides, drinks, and sauces, with stage-gated process and seasonal/limited-time offerings.

• Value proposition built on intrinsic menu value, everyday value combos, and targeted digital promotions.

• Digital investments include a proprietary app, web platform, and upcoming replatforming to enhance customer experience.

• PDCX technology package and industry-leading digital platform to be deployed in all locations, integrating advertising, loyalty, and consumer-facing assets.

Franchise and Unit Growth

• 444 open locations at end of Q1, with 766 open and committed, and 103 franchise locations; pipeline up 26% year-over-year.

• Franchise-led growth strategy targets at least 38 new shop openings in 2025 and double-digit annual unit growth.

• 70% of franchisees committed to multi-unit development, attracted by strong unit economics and efficient design.

• Geographic expansion continues, with new commitments broadening national footprint.

• Re-engineered shop design improves efficiency, supports digital business, and reduces required lease space.