- **Revenue Momentum**: 3.2% same-store sales growth, 8 new shops opened, and 54 franchise commitments drive accelerated growth.
- **Digital Dominance**: 41% of sales via digital channels, with 140 basis point year-over-year expansion.
- **Franchise Expansion**: 2025 guidance raised to 38+ openings, with 364 signed deals in pipeline.
- **Profitability**: Adjusted EBITDA up 13% to $9.6 million, shop-level margin at 16.7%.
- **Innovation**: Prime Rib Steak sandwich and digital platform upgrades fuel customer engagement.


**【Management Opening Remarks】**
- Adiya Dixon emphasized forward-looking statements and non-GAAP measures, setting the stage for the financial and operational updates.

**【CEO Summary Section】**
- **Revenue Growth**: Same-store sales increased 3.2% year-over-year, driven by 1.1% transaction growth and a 2.1% average check increase. Digital sales represented 41% of total shop sales, up 140 basis points year-over-year.
- **Shop Expansion**: 8 new shops opened in Q2 (ahead of expectations), with plans for at least 38 openings in 2025. Franchise commitments reached 54 new shops, bringing total open and committed shops to 816.
- **Menu Innovation**: Launched Prime Rib Steak sandwich and Hot Pepper potato chips, with additional menu tests in progress. Digital platform upgrades (e.g., one-click ordering) improved customer experience.
- **Franchise Strategy**: Accelerated franchise growth through incentives for early openings, with 8-year maximum development timelines for area agreements.
- **Community Impact**: Highlighted Potbelly's Summer of Service initiative, including partnerships with food banks and community events.

**【CFO Financial Commentary】**
- **Financial Performance**: Q2 2025 system-wide sales of $154.2 million (+6.7% YoY), total revenue $123.7 million (+3.4% YoY). Adjusted EBITDA of $9.6 million (+13% YoY), driven by 100 basis point shop-level margin expansion to 16.7%.
- **Expense Management**: Food/beverage costs improved 80 basis points, occupancy costs down 30 basis points. General & administrative expenses rose 50 basis points due to bonus accruals and consulting costs.
- **Guidance Update**: Raised 2025 same-store sales growth to 2.0%-3.0% (from 1.5%-2.5%), unit growth to at least 38 openings, and adjusted EBITDA to $34.0-$35.0 million (from $33.0-$34.0 million).

**【Q&A Highlights】**
- **Franchise Pipeline**: 364 signed deals in pipeline, with 50+ openings visible for 2026. Corporate openings (10-20/year) focused on high-margin, low-construction-cost markets.
- **Menu Pricing**: 2.7% gross price increase offset by 0.6% mix decline, with no immediate plans for further price hikes.
- **Remodels & Technology**: 5 remodels completed, testing PDCX (POS/kitchen display) systems. Digital sales growth driven by app/web enhancements and loyalty program engagement.
- **Competition & Consumer Trends**: Digital customers spend 10%-15% more than counter orders. Low-income consumer pressure minimal due to $8-$9 meal pricing sweet spot.


Potbelly Corporation (PBPB) Q2 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PBPB(Delisted)

PBPB fundamentals

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