Potbelly Swings To Quarterly Profit As Sales Rise 16%

Shares of Potbelly Corp. rose 3% in after-hours trade on Tuesday after the company reported stronger-than-expected earnings and sales for the first quarter. The company, which operates the Potbelly Sandwich Shop, reported net income of $500,000, up from a year-earlier loss of $300,000. It posted adjusted earnings per share of three cents, beating the average analyst estimate on FactSet by one penny. Revenue for the quarter was up 16% year-over-year to $85.8 million, coming in just ahead of the consensus estimate of $85.1 million, while same-store sales, a key growth metric for retailers, improved by 5.4%. For the full fiscal year, Potbelly said it is anticipating at least 20% annual-adjusted net-income growth. Its shares are down 15% over the last 12 months, compared with an 11% improvement for the broader S&P 500.