Potbelly Corporation announced its financial results for the first fiscal quarter ended March 30, 2025, reporting total revenues of $113.7 million, a 2.3% increase year-over-year. Company-operated same-store sales grew by 0.9%, significantly exceeding management's guidance of -1.5% to -0.5%. This positive performance was driven by a 1.3% increase in sandwich shop sales and a 30.8% increase in franchise royalties, fees, and rent income.
Shop-level profit margin expanded by 20 basis points year-over-year to 13.7%, primarily due to a 110 basis point decrease in food, beverage, and packaging costs. Net loss attributable to Potbelly Corporation improved substantially to $62,000, compared to a $2.8 million loss in the prior year, largely due to the absence of a $2.4 million loss on extinguishment of debt. Adjusted EBITDA for the quarter was $5.5 million.
The company continued its robust franchise expansion, opening four new shops and securing commitments for an additional 40 new shops in Q1. This brings the total open and committed shop count to 766 across 33 franchise groups. Digital channels remained a strong driver, representing over 42% of total shop sales, a 200 basis point increase year-over-year.
Potbelly reiterated its full-year 2025 guidance, projecting same-store sales growth of 1.5% to 2.5%, at least 38 unit openings, and Adjusted EBITDA of approximately $33 million to $34 million. For the second quarter of 2025, the company anticipates same-store sales growth of 1.5% to 2.5%, at least six unit openings, and Adjusted EBITDA between $8.25 million and $9.75 million.
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