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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. 

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Results for PBPB
1 Sep 15 02:46:03
$PBPB: Potbelly Corporation Analyst Rating Update: http://t.co/77BHNVoOmd
31 Aug 15 14:35:07
$PBPB Institutional ownership up 1.61% Q/Q, with 158,479 net purchase http://t.co/VWBWiefFUW http://t.co/XdXRAQNGCg
30 Aug 15 23:55:18
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/n4FmW1UTLN .. $SORL $FES $PBPB
29 Aug 15 05:20:35
chartguy89: 2015 Trending Stocks: PBPB +0.19% Stock Charts $PBPB Potbelly Corp. http://t.co/uLHwdUTKG0
29 Aug 15 05:16:36
PBPB +0.19% Stock Charts $PBPB Potbelly Corp. (NASDAQ) Last Updated: 08/29/2015 07:16:41 PBPB Stock Chart - 1 http://t.co/php8tawxKi
28 Aug 15 19:11:01
$PBPB: Wall Street analysts bullish on PBPB's earnings growth: http://t.co/7SQBnIBqyK http://t.co/qPCS3duMjt
Capital Market Labs
28 Aug 15 18:09:40
9 Small/Mid Cap Consumer Svcs with Great Fundamentals but Death Cross $FRGI $BJRI $PBPB $NATH http://t.co/YA9cdk2keC http://t.co/P3HdweNNFS
Eric C
28 Aug 15 06:34:00
Morning plan $AHP $SWHC $SDRL $ZOES $PBPB http://t.co/EY5tzhsEMn
Capital Market Labs
28 Aug 15 01:09:37
9 Small Cap Consumer Svcs with Great Fundamentals but Bearish Momentum $CPLA $APEI $PBPB $NATH http://t.co/u4r1Q11S4n http://t.co/ExuPUKXhG4
Tracey Ryniec
27 Aug 15 09:26:37
Restaurant bubble still alive. Chipotle P/E = 40. Habit = 95. Bojangles = 26 Potbelly = 38. Nothing is cheap. $CMG $HABT $BOJA $PBPB
Capital Market Labs
27 Aug 15 02:22:36
Interactive Chart -> http://t.co/OrTKezj6Zf $PBPB Revenue is Increasing. http://t.co/sDUkCDcBtg
26 Aug 15 16:46:03
$PBPB Institutional ownership up 1.61% Q/Q, with 158,479 net purchase http://t.co/VWBWiefFUW http://t.co/UCqjKGtNV7
subzero hedge
26 Aug 15 14:33:19
Commented on StockTwits: just a question why would $PBPB be a fad? http://t.co/RV7iJxp83n
Thomas P. Eller Jr.
26 Aug 15 11:56:41
"@IAS $PBPB Is PBPB a fine bet? Must read: http://t.co/45eZZZDSLn"
Thomas P. Eller Jr.
25 Aug 15 13:37:04
$PBPB in @$9.50?
25 Aug 15 08:43:31
Potbelly Corp Receives $14.17 Average Price Target from Brokerages $PBPB http://t.co/hiQqXeyLeI
25 Aug 15 00:16:26
This Service Made 20,000% Gains In the Last Month! Subscribe Here http://t.co/n4FmW1UTLN .. $SORL $FES $PBPB
24 Aug 15 21:03:03
$PBPB: Zacks Short Term Rating on Potbelly Corporation (NASDAQ:PBPB): http://t.co/H2tI4RIpxb
Colin Guheen
24 Aug 15 05:29:51
RT @NRNonline: 10 #restaurant companies with 2Q profit gains http://t.co/x7FOFM6A6e $SBUX $PBPB $CMG http://t.co/dHjdujGx9K
Long & Short Ideas
24 Aug 15 04:27:15
At Its Lows, Potbelly Is Still Too Expensive http://t.co/ZwaAIDhYjh $PBPB
Seeking Alpha
24 Aug 15 04:27:14
At Its Lows, Potbelly Is Still Too Expensive http://t.co/j903Xksynq $PBPB
By  +Follow October 4, 2013 6:16AM



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