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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. 

Results for PBPB
Stock Herald
17 Apr 14 20:17:07
$PBPB: Is Zoes Kitchen a Hot Hors doeuvre? http://t.co/ap9TLtymjM
MarketNews
17 Apr 14 20:10:34
$PBPB - Is Zoes Kitchen a Hot Hors doeuvre? -> http://t.co/KGVAxQ30UM #stock #stocks #stockaction
Informer
17 Apr 14 19:39:07
$PBPB: [$$] Chipotle to Raise Prices; Profit Climbs on Better Traffic http://t.co/LPQxCzVeoV
Stock_Tracker
17 Apr 14 19:34:34
Potbelly Corp (PBPB) 17.15 $PBPB Is Zoe's Kitchen a Hot Hors d'oeuvre? Daniel Jones, The Motley Fool - Motley http://t.co/ID67ADRWeD
SNN Team
17 Apr 14 19:23:12
$PBPB - [$$] Chipotle to Raise Prices; Profit Climbs on Better Traffic -> http://t.co/1JiGb6TbVD #stock #stocks #stockaction
GavinGreenberg
17 Apr 14 15:01:05
$PBPB: New Stock Coverage: Unforgettable Day for Flash Memory Maker SanDisk http://t.co/74eh6dlGbq
StockNews24
17 Apr 14 15:00:04
$PBPB - New Stock Coverage: Unforgettable Day for Flash Memory Maker SanDisk -> http://t.co/iRHq3Sbanq #stock #stocks #stockaction
GavinGreenberg
17 Apr 14 12:18:36
$PBPB: [$$] Chipotle to Raise Prices http://t.co/AeUpTi86cc
stocknews247
17 Apr 14 12:02:14
$PBPB - [$$] Chipotle to Raise Prices -> http://t.co/yUGvplhLRt #stock #stocks #stockaction
Henis P
17 Apr 14 11:11:19
RT @BarbarianCap: if $CMG can't push higher costs through... what do you think higher-than-CMG-multple names $NDLS and $PBPB can do?
Ernest Partington
17 Apr 14 09:47:09
$PBPB Is Zoe's Kitchen a Hot Hors d'oeuvre? http://t.co/PzTatIQrcY
Barbarian Capital
17 Apr 14 09:26:29
$CMG weak post-callL both food and labor outlook cloudy. And that's from the premier name... just imagine the bush leagues, like $PBPB
Drizzy
17 Apr 14 08:23:20
Long $CMG Short $PBPB trade is at 29% right now. cc: @BarbarianCap
Adam
17 Apr 14 07:52:33
RT @HedgeyeHWP: CMG is seeing margin pressure and they are taking market share with 13% SSS - others will not be so lucky... $CAKE $PBPB $B…
The Common Tulip
17 Apr 14 07:10:19
Are Potbelly's Bears Lazy or Right?: http://t.co/PKutxxdw8u via @themotleyfool $PBPB #potbelly #sandwich #stocks
Ernest Partington
17 Apr 14 06:43:11
$PBPB New Stock Coverage: Unforgettable Day for Flash Memory Maker SanDisk http://t.co/mPGH9kaVTk
Mike
17 Apr 14 06:22:47
RT @HedgeyeHWP: CMG is seeing margin pressure and they are taking market share with 13% SSS - others will not be so lucky... $CAKE $PBPB $B…
TheCreditBubble
17 Apr 14 06:18:04
RT @BarbarianCap: if $CMG can't push higher costs through... what do you think higher-than-CMG-multple names $NDLS and $PBPB can do?
GavinGreenberg
17 Apr 14 06:07:37
$PBPB: [$$] Chipotle Profit Rises on Stronger Restaurant Traffic http://t.co/bVWj7PPw9X
GavinGreenberg
17 Apr 14 06:07:36
$PBPB: Are Potbellys Bears Lazy or Right? http://t.co/gHK9vD7BFG
SNN Team
17 Apr 14 05:53:36
$PBPB - [$$] Chipotle Profit Rises on Stronger Restaurant Traffic -> http://t.co/mXCtJYq9BM #stock #stocks #stockaction
SNN Team
17 Apr 14 05:53:24
$PBPB - Are Potbellys Bears Lazy or Right? -> http://t.co/6egswMnfTw #stock #stocks #stockaction
Ernest Partington
17 Apr 14 05:42:04
$PBPB Are Potbelly's Bears Lazy or Right? http://t.co/a6J4rG0bTE
Ernest Partington
17 Apr 14 05:42:03
$PBPB [$$] Chipotle Profit Rises on Stronger Restaurant Traffic http://t.co/7wNNDSVJSO
Fat Tail Capital
17 Apr 14 05:26:28
RT @BarbarianCap: if $CMG can't push higher costs through... what do you think higher-than-CMG-multple names $NDLS and $PBPB can do?
Barbarian Capital
17 Apr 14 05:18:05
RT @HedgeyeHWP: CMG is seeing margin pressure and they are taking market share with 13% SSS - others will not be so lucky... $CAKE $PBPB $B…
Howard Penney
17 Apr 14 05:17:26
CMG is seeing margin pressure and they are taking market share with 13% SSS - others will not be so lucky... $CAKE $PBPB $BLMN
Barbarian Capital
17 Apr 14 05:10:40
if $CMG can't push higher costs through... what do you think higher-than-CMG-multple names $NDLS and $PBPB can do?
Ernest Partington
16 Apr 14 22:16:35
$PBPB Hot IPO market may be cooling down http://t.co/KJREbvMi6k
LMED
16 Apr 14 10:20:45
Starter position in $PBPB. chart Looks like its trying to consolidate and possibly make move out of downward wedge.
Donell Edwards
16 Apr 14 09:34:20
RT @BarbarianCap: Potbelly $PBPB new lows earlier under $17... moving towards IPO price.
Herb Greenberg
16 Apr 14 07:47:47
RT @BarbarianCap: Potbelly $PBPB new lows earlier under $17... moving towards IPO price.
John Kelley
16 Apr 14 07:33:49
$PBPB moving lower sub 17. Short target 13
BC
16 Apr 14 06:49:26
Short Squeeze Alerts $MYGN $WLT $VRA $NQ $TPH $GDP $EBIX $WRLD $PBPB http://t.co/dpK31Z2xQr
BC
16 Apr 14 06:49:16
RT @OptionCast: Short Squeeze Alerts $MYGN $WLT $VRA $NQ $TPH $GDP $EBIX $WRLD $PBPB http://t.co/GyP8KfNq4G
OptionCast
16 Apr 14 06:48:25
Short Squeeze Alerts $MYGN $WLT $VRA $NQ $TPH $GDP $EBIX $WRLD $PBPB http://t.co/GyP8KfNq4G
Barbarian Capital
15 Apr 14 19:47:37
Consumer new lows today for $MELI $EXPR $TCS $PBPB $COUP $ETH $STNR $PBY $ARO $FWM $RSH $LUB $WTSL $GMAN > heavy in retail
Brian Nichols
15 Apr 14 10:22:33
Is Zoe's Kitchen a Good Investment Opportunity? $ZOES $PBPB $NDLS http://t.co/tEj99gQsGH via @themotleyfool
SNN Team
15 Apr 14 05:53:26
$PBPB - Is Zoes Kitchen a Good Investment Opportunity? -> http://t.co/cA2140OlEJ #stock #stocks #stockaction
Hedgeye
14 Apr 14 17:24:06
Two-Minute Video | The Casual Dining Dilemma http://t.co/5yF0OMDVpC @HedgeyeHWP $PBPB $BLMN $CAKE
Barbarian Capital
14 Apr 14 11:40:26
both $TCS and $PBPB hitting lows today. Looming and recently expired lock-ups, respectively, not helping.
Hesham Shaaban
14 Apr 14 11:28:04
RT @HedgeyeTV: NEW VIDEO | The Casual Dining Dilemma http://t.co/kBHUSBPJv0 @HedgeyeHWP $BLMN $CAKE $PBPB
Hedgeye
14 Apr 14 11:23:31
RT @HedgeyeTV: NEW VIDEO | The Casual Dining Dilemma http://t.co/kBHUSBPJv0 @HedgeyeHWP $BLMN $CAKE $PBPB
SNN Team
14 Apr 14 11:23:15
$PBPB - Zoes Kitchen Presents a Real Growth Opportunity -> http://t.co/E2ezvv1qUM #stock #stocks #stockaction
HedgeyeTV
14 Apr 14 11:22:48
NEW VIDEO | The Casual Dining Dilemma http://t.co/kBHUSBPJv0 @HedgeyeHWP $BLMN $CAKE $PBPB
OptionCast
14 Apr 14 06:37:35
Short Squeeze Alerts $MYGN $WLT $VRA $NQ $TPH $GDP $EBIX $WRLD $PBPB http://t.co/xudbNL3fGb
Eli Zandman
13 Apr 14 15:47:00
Atlanta is really missing out! @Potbelly is delish and cheap. $pbpb http://t.co/mcPPMBK0Hp
Brian Bolan
13 Apr 14 09:09:00
This space will see pain in a big way soon $NDLS, $PBPB $CHUY $CMG $FRGI $BWLD ---> http://t.co/5mINgPI7KK
Wexboy
12 Apr 14 11:07:07
$PBPB has been nrly sliced in half (!), bt still trades at 51 times estimated earnings... Wht is it abt suckers & restaurant stks?!
				
				
By  +Follow October 4, 2013 6:16AM
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