Potbelly (PBPB) shares surge on strong earnings

Shares of Potbelly (PBPB) jumped 12% higher Wednesday after the sandwich chain's adjusted profit beat Wall Street expectations in its first earnings since its initial public offering last month. Excluding one-time costs, the firm earned 15 cents per share, up from 12 cents in the same period a year ago, and above the estimates of 9 cents from analysts surveyed by Thomson Reuters.

 ticker: PBPB

DETAILS: The Chicago-based restaurant chain went public in October and received proceeds of $108.8 million from the offering, which it used to fund a special dividend and pay down debt. It plans to use the remaining proceeds for general corporate purposes.

Potbelly said that it benefited from strong sales. Its quarterly revenue from company-owned stores open at least a year increased 2.5 percent, which is considered a key indicator of financial performance as it strips away the impact of recently opened and closed sites.

NUMBERS: Potbelly reported net income attributable to the company of $2.2 million versus $2.5 million last year. After making its special dividend to stockholders tied to its IPO and other special items, the company posted a third-quarter loss attributable to shareholders of $52.5 million, or $12.29 per share. That's compared with a loss of $3 million, or 75 cents per share, last year.

The company earned 15 cents per share versus 12 cents per share after adjusting for all one-time costs tied to the offering.

Potbelly's total revenue increased 12 percent to $78 million.

Analysts polled by FactSet were anticipating earnings of 9 cents per share on revenue of $77.9 million.

FUTURE: Potbelly said that it expects adjusted income between $7.5 million and $8.1 million for the full fiscal year on revenue between $300 and $303 million. The company did not provide per-share guidance. Analysts had forecast revenue of $301.6 million for the year.

It also said that it expects 40 to 42 new store openings for the year. At quarter-end Potbelly operated 288 locations, while franchisees operated another 19 restaurants.