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PBPB (Potbelly) Degree of Operating Leverage : -10.12 (As of Mar. 2025)


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What is Potbelly Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Potbelly's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -10.12. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Potbelly's Degree of Operating Leverage or its related term are showing as below:

PBPB's Degree of Operating Leverage is ranked better than
88.99% of 345 companies
in the Restaurants industry
Industry Median: 1.28 vs PBPB: -10.12

Potbelly Degree of Operating Leverage Historical Data

The historical data trend for Potbelly's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

Potbelly Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -23.30 -2.24 -6.79 6.06 2.01

Potbelly Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage 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 -15.56 40.13 -6.08 2.01 -10.12

Competitive Comparison of Potbelly's Degree of Operating Leverage

For the Restaurants subindustry, Potbelly's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Potbelly's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Potbelly's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Potbelly's Degree of Operating Leverage falls into.


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Potbelly Degree of Operating Leverage Calculation

Potbelly's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 11.124 (Mar. 2025) / 7.942 (Mar. 2024) - 1 )/( 465.126 (Mar. 2025) / 484.293 (Mar. 2024) - 1 )
=0.4007/-0.0396
=-10.12***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Potbelly  (NAS:PBPB) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Potbelly Degree of Operating Leverage Related Terms

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


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. majority 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, its franchises are in the Middle East.
Executives
Adam Noyes officer: SVP, Chief Operations Officer 111 N CANAL ST, SUITE 850, CHICAGO IL 60601
Karen Lynette Mckee officer: SVP, Franchising C/O POTBELLY CORPORATION, 111 N. CANAL STREET, SUITE 325, CHICAGO IL 60606
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
Jeffrey Douglas officer: SVP, Chief Information Officer 111 N. CANAL STREET, SUITE 850, CHICAGO IL 60606
Adiya Dixon officer: SVP, CLO and Secretary 111 N CANAL, SUITE 850, CHICAGO IL 60606
David Near director 111 N CANAL ST, SUITE 850, CHICAGO IL 60601
Patrick James Walsh officer: Chief People Officer 410 N. MICHIGAN AVENUE, SUITE 400, CHICAGO IL 60611
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
Adrian M Butler director 111 NORTH CANAL STREET, SUITE 850, CHICAGO IL 60606
Todd Whitney Smith director 300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Joseph Boehm director 111 NORTH CANAL, SUITE 850, CHICAGO IL 60606