Potbelly, a Chicago-based sandwich restaurant that began operations 45 years ago, has relied on a network of primarily urban, company-owned locations since its inception. This approach will soon be revised. Lately, officials from fast food chain Potbelly informed investors that they plan to become an 85% franchised system. Moreover, it will expand from its current 443 branches to 2,000 in the next eight to ten years. USA famous sandwich shop Potbelly Corporation has released its financial results for the fiscal year and fourth quarter that concluded on December 26, 2021. This article highlights potbelly franchise profit and predictions from 2020 to 2024.
Potbelly Franchise Profit – Primary High Light Concluded From 2020 to 2021
Potbelly sales rose from $291,3 million to $380,1 million between 2020 to 2021. Compared to a GAAP net loss of ($65.4) million, Potbelly Corporation’s net loss was ($23.8) million. A loss per share based on GAAP was ($0.86), significantly improving from the prior loss per share of ($2.74).
- There was a decrease in the adjusted net loss1 to ($14.4) million for Potbelly Corporation from the prior year’s figure of ($46.3) million.
- When compared to the previous EBITDA (*1) loss of ($51.0) million, this year’s figure is a remarkable improvement at ($6.7) million.
- The previous Adjusted EBITDA (*2) loss of ($32.7) million has been significantly reduced to a $0.5 million profit.
Achievements in Strategic Planning for the Year 2021
Potbelly management is also confident in their team’s ability to unlock the full potential of Potbelly with its iconic brand positioning, differentiated menu, and loyal customer base.
- At +30.3% compared to the year-ago period, same-store sales (SSS) trends showed a considerable increase; SSS were largely stable compared to 2019.
- Year-over-year, same-store traffic was up +20.1% over the previous year, with improvements seen in every retail format.
- After implementing new technology stacks and menus, revenue, foot traffic, and average check improved.
- The Company, Potbelly, continues to grow revenue from digital channels, a significant step forward in achieving its Five-Pillar strategy.
- Potbelly’s many important management team members to growth-focused positions bring the total number of executives to a full complement.
- The food chain managed to maintain the expense discipline that was originally put in place in 2020, bringing the G&A proportion of sales down to below 9% as planned.
Potbelly’s Strategy 2022
The Company also detailed its long-term growth objectives and strategic plan for fiscal 2022. Intending to realize the full potential of the distinctive brand, Potbelly has unveiled its three-year strategic goals and long-term unit potential as it moves into its next phase of expansion.
Potbelly Franchise Profit Development By Bob Wright
The Potbelly Corporation Company’s President and Chief Executive Officer, Bob Wright, commented, “Over the last year and a half, we have worked diligently to reshape many of the brand’s foundations. A new management team, streamlined menu, upgraded technology stack with the enhanced app and web functionality, improved Perks Loyalty program, and a more sophisticated approach to Potbelly branding.”
Upcoming Growth & Expansion
As a result, these initiatives guided Potbelly’s business through the pandemic and positioned its platform to support significant growth and expansion in the coming years. The Potbelly sandwich shop has a high-quality restaurant’s delicious taste and a welcoming ambiance.
What Are the New Innovations of 2022 & 2023?
A delicious menu, awesome people, and a fun environment distinguish Potbelly from its competitors, and it’s believed the combination should be distributed across the USA. Our Franchise Growth Acceleration Initiative includes a target to grow to over 2,000 units in the U.S. over the next three years. In addition, we plan to re-franchise approximately 25% of the country. Refranchised shops are expected to develop new shops to penetrate existing markets as part of the deal thoroughly.
Potbelly 2024 Targets
Potbelly’s 2024 growth and profitability targets include the following:
- Increasing AUVs to $1.3 million.
- Increasing shop level margins to at least 16%.
- Growing units by at least 10% through expanding branches.
Glossary
(*1) To put it simply, EBITDA is net income less the costs of depreciation, amortization, interest, and taxes.
(*2) Earnings Before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA) is a measure of a company’s profitability that excludes some non-cash and other factors that management does not deem indicative of foundational operational efficiency.
Feature Image: Pixabay
Related articles:
