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Potbelly (Potbelly) Piotroski F-Score : 8 (As of Apr. 25, 2024)


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What is Potbelly Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Potbelly has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Potbelly's Piotroski F-Score or its related term are showing as below:

PBPB' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Potbelly was 8. The lowest was 2. And the median was 6.


Potbelly Piotroski F-Score Historical Data

The historical data trend for Potbelly's Piotroski F-Score 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 Piotroski F-Score Chart

Potbelly Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 2.00 5.00 8.00 8.00

Potbelly Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score 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 8.00 7.00 8.00 8.00 8.00

Competitive Comparison of Potbelly's Piotroski F-Score

For the Restaurants subindustry, Potbelly's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Potbelly's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Potbelly's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -1.327 + 2.216 + 1.495 + 2.736 = $5.1 Mil.
Cash Flow from Operations was -0.657 + 12.679 + 2.479 + 4.987 = $19.5 Mil.
Revenue was 118.27 + 126.623 + 120.768 + 125.749 = $491.4 Mil.
Gross Profit was 35.838 + 40.771 + 39.473 + 47.779 = $163.9 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(245.171 + 250.889 + 256.873 + 251.281 + 252.46) / 5 = $251.3348 Mil.
Total Assets at the begining of this year (Dec22) was $245.2 Mil.
Long-Term Debt & Capital Lease Obligation was $161.2 Mil.
Total Current Assets was $53.1 Mil.
Total Current Liabilities was $71.1 Mil.
Net Income was -7.913 + 0.574 + 9.029 + 2.655 = $4.3 Mil.

Revenue was 98.221 + 115.952 + 117.649 + 120.15 = $452.0 Mil.
Gross Profit was 23.815 + 33.196 + 33.13 + 36.295 = $126.4 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(253.237 + 242.348 + 245.768 + 241.555 + 245.171) / 5 = $245.6158 Mil.
Total Assets at the begining of last year (Dec21) was $253.2 Mil.
Long-Term Debt & Capital Lease Obligation was $169.5 Mil.
Total Current Assets was $30.5 Mil.
Total Current Liabilities was $68.9 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Potbelly's current Net Income (TTM) was 5.1. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Potbelly's current Cash Flow from Operations (TTM) was 19.5. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=5.12/245.171
=0.02088338

ROA (Last Year)=Net Income/Total Assets (Dec21)
=4.345/253.237
=0.01715784

Potbelly's return on assets of this year was 0.02088338. Potbelly's return on assets of last year was 0.01715784. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Potbelly's current Net Income (TTM) was 5.1. Potbelly's current Cash Flow from Operations (TTM) was 19.5. ==> 19.5 > 5.1 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=161.218/251.3348
=0.64144719

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=169.518/245.6158
=0.69017547

Potbelly's gearing of this year was 0.64144719. Potbelly's gearing of last year was 0.69017547. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=53.092/71.078
=0.74695405

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=30.53/68.939
=0.44285528

Potbelly's current ratio of this year was 0.74695405. Potbelly's current ratio of last year was 0.44285528. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Potbelly's number of shares in issue this year was 30.607. Potbelly's number of shares in issue last year was 29.419. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=163.861/491.41
=0.33345068

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=126.436/451.972
=0.27974299

Potbelly's gross margin of this year was 0.33345068. Potbelly's gross margin of last year was 0.27974299. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=491.41/245.171
=2.00435614

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=451.972/253.237
=1.78477869

Potbelly's asset turnover of this year was 2.00435614. Potbelly's asset turnover of last year was 1.78477869. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Potbelly has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Potbelly  (NAS:PBPB) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Potbelly Piotroski F-Score Related Terms

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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