Potbelly Reports Earnings Miss, Strategic Review
Potbelly Corp. announced Friday, along with a second-quarter earnings miss, that it will undertake a strategic review of the business to enhance shareholder value. Shares fell 1.4% in premarket trading after the sandwich chain reported a loss of $138.0 million, or 1 cent per share, after net income of $3.4 million, or 13 cents per share, for the same period last year. Adjusted EPS was 11 cents, missing the 12-cent FactSet consensus. Revenue totaled $108.1 million, up from $105.0 million last year and below the $110.0 million FactSet consensus. Company-operated same-store sales fell 4% for the quarter. Potbelly expects 2017 a mid-single digit decline in company-operated same-store sales. Full-year EPS is expected to be 30 to 33 cents. The FactSet consensus is 37 cents. Potbelly shares are down 15.5% for the year to date while the S&P 500 index is up 10.4% for the period.
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