Feb. 17--Potbelly, the Chicago-based sandwich shop chain, posted a profit in the fourth quarter and exceeded analyst expectations.
Potbelly earned $702,000 in the quarter, or 2 cents per share. That compares with a loss of $3.7 million during the same period in 2013.
Excluding one-time items, the company earned $1.7 million, or 6 cents per share, easily beating the average Wall Street estimate of 3 cents per share.
Revenue was $84.8 million, up 13.4 percent over the same period a year earlier, exceeding analyst expectations of $83.3 million. Company-operated same-store sales increased 3.7 percent in the quarter, beating expectations of 2.5 percent, according to Consensus Metrix.
"Comparable store sales growth continued to show strength in each month of the fourth quarter, driven by an improvement in underlying traffic trends as well as easing comparisons," said CEO Aylwin Lewis in a statement.
He said the first half of the year was "challenging" but the business momentum shifted during the second half. "The underlying fundamentals of the business are strong, as is our ability to achieve our long-term financial goals," he said.
For the year, Potbelly opened 46 new shops and increased revenue 9.1 percent, to $327 million. Company-operated same-store sales increased 0.1 percent. Profit was $4.4 million for the year, up from $1.3 million in 2013.
For 2015, Potbelly executives expect at least 20 percent annual profit growth, based on 48 to 55 new shops and "low single-digit" company-operated comparable store sales growth, among other factors, the company said.
Potbelly got its start in 1977, when an antiques store on Lincoln Avenue began offering warm sandwiches and desserts to customers to help boost sales.
Its second shop opened in 1997, and it went public in October 2013.
Today, the chain has more than 300 locations, most of which are company-owned.
gkarp@tribpub.com
