Casual sandwich chain Potbelly (NASDAQ: PBPB) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Potbelly met analysts’ revenue expectations last quarter, reporting revenues of $116.6 million, down 7.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 be flat year on year at $111.7 million, improving from the 6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Analysts covering the company have generally 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 three 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 17.4%, meeting analysts’ expectations, and Chipotle reported revenues up 6.4%, falling short of estimates by 2.1%. Wingstop traded up 12.7% following the results while Chipotle was also up 1.7%.
Read our full analysis of Wingstop’s results here and Chipotle’s results here.
There has been positive sentiment among investors in the modern fast food segment, with share prices up 6.9% on average over the last month. Potbelly is up 10.4% during the same time and is heading into earnings with an average analyst price target of $16.67 (compared to the current share price of $9.99).
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