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Potbelly (Potbelly) Operating Income : $11.2 Mil (TTM As of Dec. 2023)


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What is Potbelly Operating Income?

Potbelly's Operating Income for the three months ended in Dec. 2023 was $2.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $11.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Potbelly's Operating Income for the three months ended in Dec. 2023 was $2.2 Mil. Potbelly's Revenue for the three months ended in Dec. 2023 was $125.7 Mil. Therefore, Potbelly's Operating Margin % for the quarter that ended in Dec. 2023 was 1.74%.

Potbelly's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Potbelly's annualized ROC % for the quarter that ended in Dec. 2023 was 3.00%. Potbelly's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.83%.


Potbelly Operating Income Historical Data

The historical data trend for Potbelly's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Potbelly Operating Income Chart

Potbelly Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.15 -57.12 -17.36 0.95 11.20

Potbelly Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.02 1.80 4.02 3.20 2.19

Potbelly Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.2 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Potbelly  (NAS:PBPB) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Potbelly's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=8.744 * ( 1 - 20.81% )/( (232.01 + 229.199)/ 2 )
=6.9243736/230.6045
=3.00 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Potbelly's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=16.9/( ( (193.484 + max(-23.949, 0)) + (189.477 + max(-25.999, 0)) )/ 2 )
=16.9/( ( 193.484 + 189.477 )/ 2 )
=16.9/191.4805
=8.83 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7.897 + 3.585 + 5.637) - (41.068 + 0 + 0)
=-23.949

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(7.96 + 3.516 + 7.828) - (41.247 + 4.057 + -0.00099999999999056)
=-25.999

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Potbelly's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=2.186/125.749
=1.74 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Potbelly Operating Income Related Terms

Thank you for viewing the detailed overview of Potbelly's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Potbelly (Potbelly) Business Description

Traded in Other Exchanges
Address
111 North Canal Street, Suite 325, Chicago, IL, USA, 60606
Potbelly Corp owns and franchises hundreds of limited-service restaurants specializing in sandwiches and salads, shakes. The menu includes toasty sandwiches, signature salads, soups, chili, sides, desserts, and, in breakfast locations it serves breakfast sandwiches and steel-cut oatmeal. Most of its locations are company-owned and located in the United States, with Illinois and Texas housing far more locations than any other state. The company has franchise partners in a number of countries. Excluding the United States, most of Potbelly's franchises are in the Middle East.
Executives
Robert D. Wright officer: President and CEO 111 N. CANAL STREET, SUITE 850, CHICAGO IL 60606
Steven Cirulis officer: SVP, Chief Financial Officer 111 N. CANAL ST., SUITE 850, CHICAGO IL 60606
Karen Lynette Mckee officer: SVP, Franchising C/O POTBELLY CORPORATION, 111 N. CANAL STREET, SUITE 325, CHICAGO IL 60606
Jeffrey Douglas officer: SVP, Chief Information Officer 111 N. CANAL STREET, SUITE 850, CHICAGO IL 60606
David Near director 111 N CANAL ST, SUITE 850, CHICAGO IL 60601
Adiya Dixon officer: SVP, CLO and Secretary 111 N CANAL, SUITE 850, CHICAGO IL 60606
Patrick James Walsh officer: Chief People Officer 410 N. MICHIGAN AVENUE, SUITE 400, CHICAGO IL 60611
Adam Noyes officer: SVP, Chief Operations Officer 111 N CANAL ST, SUITE 850, CHICAGO IL 60601
David T. Pearson director C/O VONAGE HOLDINGS CORP, 23 MAIN STREET, HOLMDEL NJ 07733
Jill Sutton director 313 IRON HORSE WAY, PROVIDENCE RI 02908
David Scott Daniels officer: CHIEF MARKETING OFFICER C/O POTBELLY CORPORATION, 111 N. CANAL STREET, SUITE 325, CHICAGO IL 60606
Larry Strain officer: CHIEF DEVELOPMENT OFFICER C/O POTBELLY CORPORATION, 111 N. CANAL STREET, SUITE 325, CHICAGO IL 60606
Todd Whitney Smith director 300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Adrian M Butler director 111 NORTH CANAL STREET, SUITE 850, CHICAGO IL 60606
Joseph Boehm director 111 NORTH CANAL, SUITE 850, CHICAGO IL 60606