Q2 2024 Potbelly Corp Earnings Call Transcript
Key Points
- Potbelly Corp (PBPB) achieved a 0.4% growth in same-store sales despite a challenging macro environment.
- The company expanded shop margins for the 13th consecutive quarter, indicating strong operational efficiency.
- Potbelly Corp (PBPB) added four new shops in the quarter and has franchise commitments to open 22 additional shops.
- Digital sales represented approximately 40% of total shop sales, with a shift towards Potbelly-owned channels.
- The $7.99 everyday value combo meal has been well-received, driving incremental sales and profitability.
- Potbelly Corp (PBPB) experienced a slowdown in traffic, with less frequent consumers visiting less often.
- The company reported a decrease in company revenue due to the short-term impact of last year's refranchising.
- Q3 started softer than expected, influenced by factors like the Fourth of July holiday and Hurricane Barrel.
- The company adjusted its full-year same-store sales guidance to a range of negative 1.5% to positive 0.5%.
- There is increased competition in the value meal space, with competitors offering aggressive pricing strategies.
Good afternoon, everyone, and welcome to Potbelly Corporation's second-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; Steve 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 second-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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