Potbelly Corporation announced its financial results for the third fiscal quarter ended September 29, 2024, reporting a significant increase in profitability. GAAP diluted earnings per share (EPS) rose 140% year-over-year to $0.12, while Adjusted EPS increased 100% to $0.08. Net income attributable to Potbelly Corporation surged 150% year-over-year, and Adjusted EBITDA grew by 19%.
Total revenues for the quarter reached $115.1 million, a 4.7% decrease from the prior year, primarily attributed to the impact of the 53rd week in 2023 and refranchising activities. Despite the revenue dip, the company demonstrated operational efficiency, with restaurant margins expanding by 0.7%. Digital sales continued to be a strong channel, representing 38% of total sales.
The company's franchise growth strategy showed tangible results, with eight new shops opened during the third quarter. Potbelly also secured commitments for an additional 32 franchise shops, signaling continued momentum in its expansion plans. These commitments contribute to the company's long-term goal of reaching 2,000 units, predominantly through franchising.
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