Nov. 03--Potbelly said its third-quarter earnings slipped despite higher sales, hurt by the cost of opening new stores.
By the numbers: The Chicago-based sandwich chain earned $1.4 million, or 5 cents per share, compared with $1.9 million, or 6 cents per share, in the same quarter last year. Revenue rose to $96 million from $84.7 million a year earlier.
Sales at established company-operated stores rose 3.7 percent in the quarter.
The "why": Higher expenses hurt the quarter, including everything from rent and labor to store pre-opening costs.
Other highlights from the quarter: Potbelly said it opened 14 locations during the quarter, including its first franchise store in the United Kingdom. The company said its board has also approved its entry into California, where it plans to open all franchises.
Quote you on that: "We made solid progress executing our priorities during the third quarter and this is reflected in our top-line performance," CEO Aylwin Lewis said in a news release. "This was our fourth consecutive quarter of solid sales growth."
Outlook: For the full year, Potbelly expects established-store sales growth of about 4 percent. It aims to open between 48 and 55 new stores in all this year.
sbomkamp@tribpub.com
