Potbelly is a fast-growing neighborhood sandwich concept offering toasty warm
sandwiches, signature salads and other fresh menu items served by engaging
people in an environment that reflects the Potbelly brand. Our combination of
product, people and place is how we deliver on our passion to be
“The Best Place
for Lunch.” Our sandwiches, salads and hand-dipped milkshakes are all made fresh
to order and our cookies are baked fresh each day. Our employees are trained to
engage with our customers in a genuine way to provide a personalized experience.
Our shops feature vintage design elements and locally-themed décor inspired by
the neighborhood that we believe create a lively atmosphere. Through this
combination, we believe we are creating a devoted base of Potbelly fans that
return again and again and that we are expanding one sandwich shop at a time.
We believe that a key to our past and future success is our culture. It is
embodied in The Potbelly Advantage, which is an expression of our Vision,
Mission, Passion and Values, and the foundation of everything we do. Our Vision
is for our customers to feel that we are their “Neighborhood Sandwich Shop” and
to tell others about their great experience. Our Mission is to make people
really happy, to make more money and to improve every day. Our Passion is to be
“The Best Place for Lunch.” Our Values embody both how we lead and how we behave
and form the cornerstone of our culture. We strive to be a fun, friendly and
hardworking group of people who enjoy taking care of our customers, while at the
same time taking care of each other.
We believe executing on The Potbelly Advantage at a high level creates a
distinct competitive advantage and drives our operating and financial results,
as illustrated by the following:
. As of June 30, 2013, we had a domestic base of 286 shops in 18 states and the
District of Columbia. Of these, the company operates 280 shops and franchisees
operate six shops. In addition, there are 12 franchised shops in the Middle
East. Total shop growth was 16.0% over the prior year;
. We achieved positive comparable store sales growth in twelve of the last
thirteen quarters through our fiscal quarter ended June 30, 2013 (comparable
store sales growth reflects the change in year-over-year sales of shops open
for 15 or more months);
. From 2011 to 2012, we increased our total revenue 15.5% to $274.9 million,
our adjusted EBITDA 17.6% to $31.5 million, and our net income for the year
ended December 30, 2012 to $7.1 million, excluding a $16.9 million non-cash
tax benefit as a result of releasing a valuation allowance against our
deferred tax assets; and
. From 2008 to 2012, we increased our shop-level profit margin by 520 basis
points to 20.7% (shop-level profit margin measures net shop sales less shop
operating expenses as a percentage of net shop sales).
Shop-level profit margin is not required by, or presented in accordance with,
U.S. generally accepted accounting principles (“GAAP”).
We were incorporated in Delaware in 2001 as Potbelly Sandwich Works, Inc. and
changed our name to Potbelly Corporation in 2002. Our principal executive
offices are located at 222 Merchandise Mart Plaza, 23rd Floor, Chicago, Illinois
60654, our telephone number at that address is (312) 951-0600 and our internet
address is www.potbelly.com.