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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
Manny Alvarez
19 Sep 14 17:23:33
@ZorTrades $PBPB trying
InsiderTradingWire
19 Sep 14 09:04:44
$PBPB | Potbelly Corporat is down 26% since we reported $2,696,601 of insider selling on 06/19/2014. Did you ... - http://t.co/pOdJWui7lG
AlphaNotBeta
19 Sep 14 07:33:22
$PBPB need a CEO change...find a food guy.
EastCoast
19 Sep 14 06:45:26
Grabbed some $PBPB @ 12.50 small.... also bidding for Oct calls
Van Dinh
18 Sep 14 06:53:19
RT @IOOptionsTrades: PriceWatch Alerts for $GTAT, $INSY, $AUXL, $NQ & $PBPB from InvestorsObserver today: http://t.co/mgs7rCAnXX #OptionsTr…
Julian Close
18 Sep 14 06:14:52
PriceWatch Alerts for $GTAT, $INSY, $AUXL, $NQ & $PBPB from InvestorsObserver today: http://t.co/3qwoNL4336 #OptionsTrading #CoveredCalls
Investors Observer
18 Sep 14 06:14:52
PriceWatch Alerts for $GTAT, $INSY, $AUXL, $NQ & $PBPB from InvestorsObserver today: http://t.co/mgs7rCAnXX #OptionsTrading #CoveredCalls
chartguy89
17 Sep 14 15:55:55
PBPB 12.36 Stock Charts $PBPB Potbelly Corp. (NASDAQ) Last Updated: 09/17/2014 17:56:01 PBPB Stock Chart - 1 M http://t.co/KMB9kbo68M
Short premo
17 Sep 14 09:02:04
$PBPB Jan 11 Put buyer for 0.75
chartguy89
17 Sep 14 01:44:12
PBPB 12.18 Stock Charts $PBPB Potbelly Corp. (NASDAQ) Last Updated: 09/17/2014 03:44:17 PBPB Stock Chart - 1 M http://t.co/7n5HWXhUeQ
MarketCurrents
16 Sep 14 10:38:31
P-E firms itching to get their hands on Jimmy John's http://t.co/h5K6QMXewC $PBPB
Ticker Report
16 Sep 14 09:44:05
Potbelly Corp Director Unloads $462,816 in Stock $PBPB http://t.co/g72do3K6Ki
Hawktrade
16 Sep 14 08:09:29
What stock would you guys compare the @HawkeyeFootball to? I'd say $PBPB. Sky-high valuation with poor performance results in huge pullback
Anthony
15 Sep 14 09:41:48
RT @WallStJesus: 🔥HIGH PUT VOLUME: $THOR 1804% $AVNR 1634% $MNTA 1605% $COMM 1578% $BHP 1504% $PBPB 1186% $GLPI 1136% $TRW 1091%
Amit Gupta
15 Sep 14 09:02:54
RT @WallStJesus: 🔥HIGH PUT VOLUME: $THOR 1804% $AVNR 1634% $MNTA 1605% $COMM 1578% $BHP 1504% $PBPB 1186% $GLPI 1136% $TRW 1091%
JE$US
15 Sep 14 09:02:37
🔥HIGH PUT VOLUME: $THOR 1804% $AVNR 1634% $MNTA 1605% $COMM 1578% $BHP 1504% $PBPB 1186% $GLPI 1136% $TRW 1091%
Livevol Community
15 Sep 14 09:00:23
HIGH PUT VOLU $THOR 1804% $AVNR 1634% $MNTA 1605% $COMM 1578% $BHP 1504% $PBPB 1186% $GLPI 1136% $TRW 1091% http://t.co/gwzPxhnztr
Sleek Money
15 Sep 14 08:21:59
Insider Selling: Bryant L. Keil Sells 37,354 Shares of Potbelly Corp Stock $PBPB http://t.co/NTcpMP4bEq
Carl Quintanilla
15 Sep 14 08:12:14
@mark_dow putting the "sub" in "oversubscribed". $PBPB
InsiderTradingWire
15 Sep 14 07:15:34
$PBPB | Potbelly Corporat is down 27% since we reported $2,696,601 of insider selling on 06/19/2014. Did you ... - http://t.co/662skaIkoi
Brian Bolan
15 Sep 14 06:26:09
$BKW saw SSS of 3.7% for July and August... looks like consumers going down the ladder from the QSR's $PBPB $ZOES $NDLS $BLMN
US Banking News
12 Sep 14 13:38:40
Potbelly Corp Director Sells $462,816 in Stock $PBPB http://t.co/Z020wq1G77
#LetsGoRangers
12 Sep 14 13:34:34
RT @intercooleronli: Potbelly Corp Director Sells $462,816 in Stock $PBPB http://t.co/AgORGWY7pL
InterCooler
12 Sep 14 13:33:01
Potbelly Corp Director Sells $462,816 in Stock $PBPB http://t.co/AgORGWY7pL
Carl Quintanilla
12 Sep 14 09:48:09
@CramersShirt @marketmodel or at $PBPB
InterCooler
12 Sep 14 08:51:56
Insider Selling: Bryant L. Keil Sells 59,406 Shares of Potbelly Corp Stock $PBPB http://t.co/EQMY3gERHJ
Grant H
12 Sep 14 08:49:20
Ruff start after initial excitement for $NDLS & $PBPB ultimately I believe their restaurants don't/won't get enough traffic #wannabechipotle
Kyle Bazzy
12 Sep 14 06:17:29
Jimmy John's Contemplating Sale Of Stake In Company $PBPB $PNRA http://t.co/P1GAdp6edv via @benzinga
CalConfidence
12 Sep 14 05:59:24
Jimmy John's Contemplating Sale Of Stake In Company $PBPB $PNRA http://t.co/boHasTRNYl via @benzinga
Sleek Money
11 Sep 14 18:38:56
Insider Selling: Potbelly Corp Director Unloads 59,406 Shares of Stock $PBPB http://t.co/FQNs7cmOxn
US Banking News
11 Sep 14 18:12:45
Potbelly Corp Director Bryant L. Keil Unloads 59,406 Shares $PBPB http://t.co/gtjo3UGVw1
				
				
By  +Follow October 4, 2013 6:16AM
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