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Potbelly (PBPB) IPO Sends Shares Soaring

By  +Follow October 4, 2013 6:16AM
Tickers Mentioned:

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
Stock Relay
24 Oct 14 03:06:57
$RJET Bid Click Here: http://t.co/hoPHYYI7Xs Also See: $PBPB $CBX $MLP $LTBR ~
23 Oct 14 23:53:19
$PBPB been eyeing this baby for a while and I may take a chance if it gets to 12.70 with a stop under 12.60
23 Oct 14 23:40:28
Potbelly Corp (PBPB) 12.77 $PBPB Potbelly Corporation to Issue Results for Third Quarter 2014 on November 4, 2 http://t.co/8KVCokvKVs
Penny Stock Secret
23 Oct 14 11:00:30
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $SORL $FES $PBPB
Gabriel Román
22 Oct 14 21:51:37
Commented on StockTwits: Yea I agree. Seeking alphas last cover mentions $PBPB is still expensive compared to ind... http://t.co/OyUcK4sLxy
Gabriel Román
22 Oct 14 21:46:38
Commented on StockTwits: Looking at same strategy for $PBPB but consensus is $14 so not sure how much it would cl... http://t.co/IZzZPfkunS
22 Oct 14 19:42:34
Potbelly Corp (PBPB) 12.92 $PBPB Potbelly Corporation to Issue Results for Third Quarter 2014 on November 4, 2 http://t.co/ynJe7VPQHt
Stock Relay
22 Oct 14 18:37:14
wininstocks2014: Stock Charts: PBPB 12.92 Stock Charts $PBPB Potbelly Corp. http://t.co/5RpTm4IkCw
22 Oct 14 18:34:25
PBPB 12.92 Stock Charts $PBPB Potbelly Corp. (NASDAQ) Last Updated: 10/22/2014 20:34:23 PBPB Stock Chart - 1 M http://t.co/Mmls8t5Yo0
Ann Arbor Buzz
22 Oct 14 12:58:47
Mentions for Potbelly: http://t.co/mooJhBrl2X - RT @gdrmelendez $PBPB Anybody see seeking alphas latest cover? Why We Agree With The N...
Gabriel Román
22 Oct 14 10:04:24
$PBPB Anybody see seeking alphas latest cover? Why We Agree With The Negativity Around Potbelly's Stock $PBPB $CMG $NDLS $PNRA
Jeremy Mullin
22 Oct 14 08:57:59
Why are potbelly's workers so cocky? You work at a a lunch stop guy. Id like my sandwich made with a little more sadness and tears. $pbpb
Seeking Alpha
22 Oct 14 07:57:52
Why We Agree With The Negativity Around Potbelly's Stock http://t.co/vnH5V2pps9 $CMG $NDLS $PNRA $PBPB
Gabriel Román
21 Oct 14 21:34:20
$PBPB Earnings report ahead of forecast.
21 Oct 14 14:05:10
Potbelly : to Issue Results for Third Quarter 2014 on November 4, 2014; Conference Call Scheduled http://t.co/gPzy8vm4iT $PBPB
Analyst Ratings
20 Oct 14 14:24:44
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20 Oct 14 13:01:27
SmallCap #Stocks Trend $ESI $NLNK $AGIO $OMER $USPH $RFP $EVC $CSS $EARN $PBPB $BLX $ACRX $WSO $NKSH more@ http://t.co/Giravo3fg9
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Stock Haven
17 Oct 14 09:04:07
Sold some $SCTY & $PBPB in #iraaccount today... Both were losers that bounced 13% and 18% from lows in last week.
16 Oct 14 16:31:54
RT @WallStJesus: $PBPB Unusual opening action: 1600 Nov $15 calls
Livevol Community
16 Oct 14 09:00:07
IV30(TM) GAINER $CSX +21.46% $SAN +20.68% $ATHN +15.27% $GOOGL +13.05% $ASH +11.57% $LOCO +11.32% $PBPB +9.96% http://t.co/gwzPxhnztr
16 Oct 14 06:51:56
$PBPB Unusual opening action: 1600 Nov $15 calls
By  +Follow October 4, 2013 6:16AM



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