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Potbelly (PBPB) IPO Sends Shares Soaring

By  +Follow October 4, 2013 6:16AM
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Shares in sandwich maker Potbelly ($PBPB) soared in its first day of trading, welcoming the company to the street with a nearly 125 percent pop. The offering, led by Bank of American (BAC) and Goldman Sachs (GS) , priced shares at $14. This was higher than expected, but still proved to be too low as the stock took off as soon as trading began.

Investors Feast on Potbelly

Potbelly brought an attractive series of fundamentals to the table that clearly piqued interest for investors. Potbelly featured 286 locations in 18 states as of June 30, and expressed plans to increase the number of stores by 10 percent annually. What’s more, Potbelly saw last year’s revenue reach $274.9 million, a year-over-year increase of 16 percent. With average revenue growth over the last 5 years at 14 percent annually, Potbelly is well ahead of the industry average of between 2 and 3 percent.

Some see Potbelly’s prices, between $5 and $8 a sandwich, as making it very competitive in the market for people’s lunch dollars.

"The price of a meal at Potbelly is competitive," said Joe Pawlak, vice president of restaurant consultants Technomic. "Since Potbelly does not have table service, customers can save a few dollars not having to tip while also enjoying a sit-down experience. Potbelly is in the sweet spot of quick casual restaurants."

Pawlak continued, citing a warm atmosphere as well: "You don't mind staying and eating at Potbelly, unlike other sandwich shops," Pawlak said. "Also, the quality is as good or better than other casual restaurants."

 The IPO sold some 7.5 million shares at $14 apiece, up from the $12 to $13 a share the company had initially predicted, raising $105 million for the growing eatery.

Restaurant Chains a Popular Wall Street Play

Potbelly represents another in a line of eatery stocks that have been showing strong gains of late. Noodles & Co. (NDLS) had its IPO in June and is up almost 19 percent since that date. Mexican-inspired restraunts Chuy’s (CHUY) and Chipotle Mexican Grill (CMG) have posted strong gains this year, up 70 percent and 45 percent respectively since the start of 2013. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for PBPB
InsiderTradingWire
1 Sep 14 07:31:01
$PBPB | Potbelly Corporat is down 28% since we reported $2,696,601 of insider selling on 06/19/2014. Did you ... - http://t.co/7axBVQ9roP
Financial Updates
30 Aug 14 22:39:50
$PBPB: Must-know: Why Chipotle’s restaurants are performing well http://t.co/zMo6Su7K4x http://t.co/rlpwlwPjzV
Thomas P. Eller Jr.
30 Aug 14 22:39:10
$PBPB Seems like management needs a kick in the butt.
Tejas D A.
30 Aug 14 08:32:44
$LOCO Game of hot potato right now with 1 7.1 mil float... Avg Vol 6.7 mil/day... It will follow $NDLS $PBPB $FUEL. Retail beware. Stay out
InsiderTradingWire
28 Aug 14 15:45:42
$PBPB | Potbelly Corporat is down 29% since we reported $2,696,601 of insider selling on 06/19/2014. Did you ... - http://t.co/vaRfBMeJs3
Brian Bolan
28 Aug 14 15:13:46
$ZOES There is a reason why $PBPB gave intra quarter guidance and $ZOES did not.
Brian Bolan
28 Aug 14 14:03:22
$ZOES updated value per store for QSR's $PNRA, $NDLS, $PBPB, $BLMN $CHUY $TXRH http://t.co/kY9UBQJDQr
Market Updates
28 Aug 14 13:39:53
$PBPB: Potbelly Corp (PBPB) Earnings Report: Will It Make Investors Sick? ZOES & NDLS http://t.co/d0IxQLUFzr http://t.co/aMQ3Wg5Dqq
Brian Bolan
28 Aug 14 12:46:06
$ZOES $PBPB $NDLS - I am the Upton Sinclair of QSR's.
Brian Bolan
28 Aug 14 10:31:48
QSR session after earnings performance with $ZOES tonight, $BLMN -19%, $NDLS -16%, $BWLD -11%, $RUTH -5%, $PBPB (warning) -25%
Day Trade Alerts
28 Aug 14 07:21:50
via #AlertTrade SHORT Seller Alert $PBPB - POTBELLY CORP COMMON #ShortSeller #Stocks http://t.co/VS8RO1bzXJ
Buttercup Bids&Asks
27 Aug 14 23:33:20
Stop Comparing Everything To Chipotle http://t.co/Ve9z5Uw0RF $CMG $NDLS $LOCO $PBPB just a reminder in case ppl forget.
Brian Bolan
27 Aug 14 11:25:16
$ZOES $4.7M per store, that is the value here. 124 stores at $30.25 per share. For $NDLS its $1.45M per store $PBPB is $1.1M per store
Bulls vs Bears
27 Aug 14 10:39:50
$PBPB: Potbelly Still Way Too Expensive (PBPB) http://t.co/V2gn5rU3hr http://t.co/cc8RY7C4xx
Wall Street News
27 Aug 14 09:39:50
$PBPB: Must-know: Why Chipotle’s restaurants are performing well http://t.co/qyASXPoaNb http://t.co/CDWeyQgL4l
Brian Bolan
27 Aug 14 07:53:48
QSR's under pressure today, group wide selling suggests sector rotation out of this basket. $ZOES $PBPB $NDLS $TAST $BKW $RT
Greenman327
27 Aug 14 07:35:28
$PBPB good buying opp here right above 20 ma. If it clears the next $1, it can reach $14.60s
Seeking Alpha
27 Aug 14 05:24:17
Potbelly Still Way Too Expensive http://t.co/eJ8vDTvA9p $PBPB
PitTrading101
26 Aug 14 19:51:25
RT @bbolan1: “@PitTrading101: $CME local long $PBPB turkey on wheat. http://t.co/M7PpljDQZU” notice how empty the shop is. $pbpb
Brian Bolan
26 Aug 14 19:40:31
“@PitTrading101: $CME local long $PBPB turkey on wheat. http://t.co/M7PpljDQZU” notice how empty the shop is. $pbpb
Brian Bolan
26 Aug 14 19:35:41
$PBPB It's 9:35 pm in Chicago which means $pbpb has been closed for 35 minutes and empty for 6 hours.
Financial Updates
26 Aug 14 18:40:13
$PBPB: Morgan Stanley dumps Potbelly http://t.co/VnFUjAoSrm http://t.co/25QrzQwvEQ
Options Strategies
26 Aug 14 18:00:23
RT @WeeklyOptions_1: $PBPB IPO few months ago had the dream of opening hundreds of stores. Look how that stock has fallen. $LOCO will be t…
brandon johnson
26 Aug 14 17:52:05
$PBPB great product, live in chicago and ours always busy. Stock buyback made no sense to me. Like Monday night football: C'MON MAN. Waiting
Bob L.
26 Aug 14 11:57:01
@jimcramer At least something makes sense on the tape right now. $NDLS, $PBPB
WeeklyOptionsTrader
26 Aug 14 11:19:17
$PBPB IPO few months ago had the dream of opening hundreds of stores. Look how that stock has fallen. $LOCO will be the next one to crash.
Brian Bolan
26 Aug 14 09:38:55
Taken moments ago at a $PBPB in downtown Chicago ---> 2 customers http://t.co/hOaYznRe79
Ironnb
26 Aug 14 08:20:52
RT @jimcramer: Preface--love $TWTR but we covered $PBPB on last night's show. I no longer recap last night's show here. Too arduous . @msu…
@mrswildcat002
26 Aug 14 07:40:41
RT @jimcramer: Preface--love $TWTR but we covered $PBPB on last night's show. I no longer recap last night's show here. Too arduous . @msu…
Robert Comandari
26 Aug 14 05:31:23
RT @jimcramer: Preface--love $TWTR but we covered $PBPB on last night's show. I no longer recap last night's show here. Too arduous . @msu…
steven silva
26 Aug 14 05:03:20
RT @jimcramer: Preface--love $TWTR but we covered $PBPB on last night's show. I no longer recap last night's show here. Too arduous . @msu…
Howard Penney
26 Aug 14 03:48:35
Amen @jimcramer Once promising, 5 stocks give Cramer indigestion http://t.co/23rB62y9pZ $PBPB $BLMN $RRGB $CHUY
Market News
26 Aug 14 03:39:36
$PBPB: [video] Cruel summer for restaurants http://t.co/L8azdtyxl7 http://t.co/50PxaTbbsN
Jim Cramer
26 Aug 14 03:30:23
Preface--love $TWTR but we covered $PBPB on last night's show. I no longer recap last night's show here. Too arduous . @msumak
Nd-Trade
26 Aug 14 03:28:54
Some stocks to watch for swing $WWE $PBPB $AA http://t.co/CkRJe1aP3Z
matt kolb
26 Aug 14 03:26:13
@jimcramer does $pbpb look interesting again with $bkw and $thi merger. I am seeing stores pop up everywhere
matt kolb
25 Aug 14 15:44:28
$pbpb might get some interest again with the $BKW $THI news today. Bad quarters but I see them sprouting up everywhere. #invest #longterm
Jean Fonteneau
25 Aug 14 15:41:09
Healthy restaurants popping in Dallas, lot of new competition $ZOES $PBPB $CMG http://t.co/SqygfuPx64 Dallas highest restaurant/capita in US
InsiderTradingWire
25 Aug 14 13:02:39
$PBPB | Potbelly Corporat is down 25% since we reported $2,696,601 of insider selling on 06/19/2014. Did you ... - http://t.co/JopUBKgvus
WeeklyOptionsTrader
25 Aug 14 12:48:00
I still think $LOCO is a dog, and that stock drops to mid 20s....similar to the $PBPB ipo.
				
				
By  +Follow October 4, 2013 6:16AM
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