Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Potbelly's
Operating Income
for the
three
months ended in Jun. 2025 was $4.4 Mil. Potbelly's Interest Expense for the
three
months ended in Jun. 2025 was $-0.1 Mil.
Potbelly's interest coverage for the quarter that ended in Jun. 2025 was 35.72.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Potbelly's Interest Coverage or its related term are showing as below:
PBPB'
s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 38.54 Max: 141.34
Current: 21.44
PBPB's Interest Coverage is not ranked
in the Restaurants industry.
Industry Median: 6.45
vs PBPB: 21.44
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Potbelly Interest Coverage Related Terms
Potbelly Interest Coverage Historical Data
* Premium members only.
The historical data trend for Potbelly's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PBPB vs BRCB, NATH, VENU: Interest Coverage Comparison
For the Restaurants subindustry, Potbelly's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Potbelly's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Potbelly's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (PBPB) has a Interest Coverage of 35.72 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Potbelly and its competitors. This is near median its historical median of 38.54. Over the past decade, Potbelly's Interest Coverage has ranged from 0.70 to 141.34.
Is Potbelly's Interest Coverage too high?
Potbelly's current Interest Coverage of 35.72 is near median its 10-year median of 38.54. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 141.34. The Restaurants industry median Interest Coverage is 6.45. Potbelly's value of 35.72 is 453.8% above this industry median. Overall, Potbelly has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Potbelly's Interest Coverage compare to BRCB and NATH?
Potbelly's Interest Coverage of 35.72 can be compared against companies in the Restaurants industry. The industry median Interest Coverage is 6.45. Potbelly's value of 35.72 is 453.8% above this benchmark. Historically, Potbelly's own Interest Coverage has ranged from 0.70 to 141.34 over the past decade. While the company's 10-year median is 38.54 vs. the industry median of 6.45, Potbelly has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Potbelly's current Interest Coverage of 35.72 is 453.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Potbelly and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Potbelly's current Interest Coverage is 35.72, which is near median its own 10-year median of 38.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Potbelly stock overvalued right now?
Potbelly (PBPB) has a current Interest Coverage of 35.72. The stock's GF Value™ is $8.39, compared to a current price of $17.12 — trading 104.1% above its estimated fair value. The current Interest Coverage is 35.72, which is near median its 10-year median of 38.54 and 453.8% above the Restaurants industry median of 6.45. Potbelly's overall GF Score™ is 9/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Potbelly (PBPB), the current Interest Coverage is 35.72 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Potbelly (PBPB) Overvalued in 2026?
Based on GuruFocus' analysis, Potbelly stock appears to be overvalued.
The current stock price of $17.12 is trading 104.1% above its estimated GF Value™ of $8.39.
Key valuation signals for PBPB:
Interest Coverage: 35.72 (near median its 10-year median of 38.54)
GF Value™: $8.39 vs. price of $17.12 (104.1% above fair value)
Industry Position: 453.8% above the Restaurants median
No single metric tells the full story. See the PBPB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
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