What To Expect From Potbelly's (PBPB) Q1 Earnings

Anthony Lee /
2024/05/07 3:02 am EDT

Casual sandwich chain Potbelly (NASDAQ:PBPB) will be reporting earnings tomorrow after the bell. Here's what to look for.

Potbelly met analysts' revenue expectations last quarter, reporting revenues of $125.7 million, up 4.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.

Is Potbelly a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Potbelly's revenue to decline 7.4% year on year to $109.5 million, a reversal from the 20.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.

Potbelly Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Potbelly has missed Wall Street's revenue estimates four times over the last two years.

Looking at Potbelly's peers in the modern fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wingstop delivered year-on-year revenue growth of 34.1%, beating analysts' expectations by 7.2%, and Shake Shack reported revenues up 14.7%, in line with consensus estimates. Wingstop's stock price was unchanged after the results while Shake Shack was up 4.1%.

Read our full analysis of Wingstop's results here and Shake Shack's results here.

Investors in the modern fast food segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Potbelly is down 7.2% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $10).

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