Overview

* Potbelly Q2 revenue rises 3.4%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 meets analyst estimates, per LSEG data

* Co raises full-year guidance, introduces positive Q3 sales outlook

Outlook

* Potbelly sees 3Q25 same-store sales growth of 3.25%-4.25%

* Company expects 3Q25 adjusted EBITDA of $9M to $10M

* Potbelly raises 2025 same-store sales growth to 2%-3%

* Company plans at least 38 new shops in 2025

Result Drivers

* SAME-STORE SALES - Company-operated same-store sales increased by 3.2%, contributing to revenue growth

* TRAFFIC GROWTH - Positive traffic growth supported sales performance, according to CEO Bob Wright

* NEW OPENINGS - Eight new shops opened and 54 franchise commitments secured in Q2, aiding future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $123.70 $122.30

Revenue mln mln (3

Analysts

)

Q2 Meet $0.09 $0.09 (3

Adjusted Analysts

EPS )

Q2 EPS $0.08

Q2 Beat $2.90 $2.79

Adjusted mln mln (2

Net Analysts

Income )

Q2 Net $2.50

Income mln

Q2 Beat $9.60 $9.19

Adjusted mln mln (4

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Potbelly Corp ( PBPB ) is $17.00, about 34.8% above its August 5 closing price of $11.09

* The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)