Potbelly Corporation

Potbelly reported system-wide sales of approximately $154.2 million, up 6.7% year over year, and total revenue of $123.7 million, up 3.4% year over year. Company-operated same-store sales increased 3.2%, with 1.1% transaction growth and 2.1% average check growth; gross price was up 2.7%, implying a 0.6% mix decline. Adjusted EBITDA was $9.6 million, up 13% year over year, and shop-level margin expanded to 16.7% from last year. Food, beverage and packaging costs were 26.3% of shop sales, labor was 28.0%, occupancy was 10.6%, and G&A was 8.7% of system-wide sales. Net income was $2.5 million and adjusted net income was $2.9 million. For 2025, management raised guidance to same-store sales growth of 2.0% to 3.0% (from 1.5% to 2.5%), unit growth of at least 38 openings, and adjusted EBITDA of approximately $34.0 million to $35.0 million (from $33.0 million to $34.0 million). For Q3 2025, it guided to same-store sales growth of 3.25% to 4.25%, at least 8 openings, and adjusted EBITDA of $9.0 million to $10.0 million.

Bob Wright framed the quarter as evidence that Potbelly’s growth engine is accelerating, pointing to positive traffic, menu innovation, digital improvements, and franchise expansion. He emphasized that the new Prime Rib Steak sandwich, value offerings, and the new website/app are all part of a multi-layer strategy to drive sustainable growth. His tone was confident and upbeat, while still stressing disciplined cost control and continued testing of new menu and digital initiatives.

Steve Cirulis highlighted the main financial drivers: system-wide sales of $154.2 million, revenue of $123.7 million, adjusted EBITDA of $9.6 million, and a 16.7% shop-level margin. He noted food, beverage and packaging costs improved to 26.3% of shop sales, helped by 40 basis points of commodity deflation, while G&A rose to 8.7% of system-wide sales due to payroll, bonus accruals, and consulting/legal settlement costs. He also said the company repurchased about 113,000 shares for roughly $1 million in Q2 and reiterated that capital will continue to go toward growth initiatives, technology, and buybacks.

Analysts focused on the size and timing of the franchise pipeline, and management said the stated 8-year development horizon is a maximum, not a standard, because smaller agreements can open faster and larger developers can open multiple units per year. Management also said company openings remain visible, with the pipeline likely front-half loaded, and reiterated that company units can still reach up to 20 a year when the economics and market conditions make sense. On traffic and digital, management said Q2 sales accelerated through the quarter, the new web/app rollout is early but encouraging, and there was no major shift between pickup, delivery, and third-party digital mix. On food costs, management said tariff exposure looks manageable so far and forecast third-quarter food inflation at just under 2%.