Potbelly's Stock Plunges 15.91% on Sales Decline

On April 3, 2025, Potbelly's stock experienced a significant drop of 15.91% in pre-market trading, reflecting a notable decline in investor sentiment.

Potbelly, a casual sandwich chain, reported mixed financial results for the fourth quarter of 2024. While the company met Wall Street's revenue expectations, its sales decreased by 7.3% year over year to $116.6 million. This decline in sales is a key factor contributing to the recent drop in stock price.

Despite the challenging financial performance, there have been some positive developments for Potbelly. Insider buying activity has been observed, with David Nierenberg purchasing 22,169 shares of the company. This insider buying could be seen as a vote of confidence in the company's future prospects, potentially mitigating some of the negative sentiment surrounding the recent financial results.

Looking ahead, Potbelly is expected to report its next quarterly earnings on May 14, 2025. Investors will be closely watching these earnings to gauge the company's progress and assess its ability to turn around its recent financial performance. The upcoming earnings report will be a critical factor in determining the future direction of Potbelly's stock price.