Q3 2024 Potbelly Corp Earnings Call Transcript
Key Points
- Potbelly Corp (PBPB) achieved a 70 basis points year-over-year improvement in shop profit margins.
- The company opened eight new shops in the third quarter, further accelerating new shop development.
- Digital business represented over 38% of total shop sales, with Potbelly-owned channels driving the entire 100 basis points year-over-year improvement in digital mix.
- The Potbelly Perks loyalty program continues to drive increased customer frequency across all cohorts.
- Franchise shop commitments increased to 86 year-to-date, with a total of 695 shops across 33 franchise groups.
- Company-operated same-store sales were down 1.8% in the third quarter.
- Labor expenses increased by 20 basis points due to higher employee group insurance costs.
- Other operating expenses rose by 30 basis points, primarily due to increased brand fund spending.
- The company faced short-term delays in shop openings due to external factors like hurricanes.
- Potbelly Corp (PBPB) provided a cautious outlook for Q4, with expected same-store sales growth ranging from negative 2.5% to negative 0.5%.
Good afternoon, everyone, and welcome to Potbelly Corporation's third quarter 2024 earnings conference call. Today's call is being recorded. (Operator Instructions)
On today's call, we have Bob Wright, President and Chief Executive Officer; Steven Cirulis, Senior Vice President and Chief Financial Officer; and Adiya Dixon, Senior Vice President, Chief Legal Officer and Secretary of Potbelly Corporation.
At this time, I'll turn the call over to Adiya Dixon. Please go ahead.
Good afternoon, everyone, and welcome to our third quarter 2024 earnings call. By now, everyone should have access to our earnings release and accompanying investor presentation. If not, they can be found in the Investors tab on our website.
Before we begin our formal remarks, I need to remind everyone that certain comments made on this call will contain forward-looking statements regarding future events or the future financial performance of the company. Any such
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