Potbelly (PBPB) 10-Q 6 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 29, 2014	Aug. 01, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	29-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Trading Symbol	'PBPB	'
Entity Registrant Name	'Potbelly Corporation	'
Entity Central Index Key	'0001195734	'
Current Fiscal Year End Date	'--12-28	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	29,477,677

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 29, 2014	Dec. 29, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$70,524	$69,579
Accounts receivable, net of allowances of $3 and $6 as of June 29, 2014 and December 29, 2013, respectively	3,949	2,991
Inventories	2,353	2,263
Prepaid expenses and other current assets	8,872	6,965
Total current assets	85,698	81,798
Property and equipment, net	81,901	78,983
Intangible assets, net	3,404	3,404
Goodwill	1,428	1,428
Deferred income taxes	17,176	17,297
Deferred expenses, net and other assets	3,139	3,170
Total assets	192,746	186,080
Current liabilities	'	'
Accounts payable	3,451	2,078
Accrued expenses	14,977	16,337
Accrued income taxes	490	216
Current portion of long-term debt	74	74
Total current liabilities	18,992	18,705
Long-term debt, net of current portion	976	1,018
Deferred rent and landlord allowances	13,011	12,288
Other long-term liabilities	736	796
Total liabilities	33,715	32,807
Equity	'	'
Common stock, $0.01 par value-authorized, 200,000,000 shares; issued and outstanding 29,470,694 and 29,148,029 shares as of June 29, 2014, and December 29, 2013, respectively	295	291
Warrants	909	909
Additional paid-in-capital	387,142	383,077
Accumulated deficit	-229,523	-231,232
Total stockholders' equity	158,823	153,045
Non-controlling interest	208	228
Total equity	159,031	153,273
Total liabilities and equity	$192,746	$186,080

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Jun. 29, 2014	Dec. 29, 2013
In Thousands, except Share data, unless otherwise specified
Condensed Consolidated Balance Sheet [Abstract]	'	'
Allowances on accounts receivable	$3	$6
Common stock, par value	$0.01	$0.01
Common stock, authorized	200,000,000	200,000,000
Common stock, issued	29,470,694	29,148,029
Common stock, outstanding	29,470,694	29,148,029

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Revenues	'	'	'	'
Sandwich shop sales, net	$83,268	$77,926	$156,791	$146,467
Franchise royalties and fees	352	260	710	463
Total revenues	83,620	78,186	157,501	146,930
Sandwich shop operating expenses	'	'	'	'
Cost of goods sold, excluding depreciation	23,936	22,760	45,022	42,753
Labor and related expenses	23,405	21,204	44,865	40,995
Occupancy expenses	10,183	8,811	20,162	17,530
Other operating expenses	8,691	7,901	16,849	15,112
General and administrative expenses	8,865	7,823	16,687	16,005
Depreciation expense	4,784	4,444	9,501	8,824
Pre-opening costs	273	429	525	719
Impairment and loss on disposal of property and equipment	29	53	877	79
Total expenses	80,166	73,425	154,488	142,017
Income from operations	3,454	4,761	3,013	4,913
Interest expense	40	122	82	233
Other expense	0	0	0	2
Income before income taxes	3,414	4,639	2,931	4,678
Income tax expense	1,407	1,869	1,216	1,886
Net income	2,007	2,770	1,715	2,792
Net (loss) income attributable to non-controlling interest	-3	11	6	15
Net income attributable to Potbelly Corporation	2,010	2,759	1,709	2,777
Accretion of redeemable convertible preferred stock to maximum redemption value	0	-2,905	0	-10,301
Net income (loss) attributable to common stockholders	$2,010	($146)	$1,709	($7,524)
Net income (loss) per common share attributable to common stockholders:	'	'	'	'
Basic	$0.07	($0.03)	$0.06	($1.77)
Diluted	$0.07	($0.03)	$0.06	($1.77)
Weighted average shares outstanding:	'	'	'	'
Basic	29,342,528	4,244,879	29,246,676	4,241,752
Diluted	30,509,553	4,244,879	30,642,892	4,241,752

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Equity (Deficit) (Unaudited) (USD $)

Total

Series A [Member]

Series B [Member]

Series C [Member]

Series D [Member]

Series E [Member]

Series F [Member]

Redeemable Convertible Preferred Stock [Member]

Common Stock [Member]

Warrants [Member]

Additional Paid-in Capital [Member]

Accumulated Deficit [Member]

Noncontrolling Interest [Member]

In Thousands, except Share data

Beginning Balance at Dec. 30, 2012

($168,728)

$52,796

$46,983

$23,715

$18,319

$79,861

$28,669

$250,343

$42

$1,552

'

($170,518)

$196

Beginning Balance, Common Shares at Dec. 30, 2012

'

'

'

'

'

'

'

'

4,233,977

'

'

'

'

Beginning Balance, Preferred Shares at Dec. 30, 2012

'

3,697,377

3,290,294

1,646,595

1,250,000

4,194,366

2,007,743

16,086,375

'

'

'

'

'

Net income

2,792

'

'

'

'

'

'

'

'

'

'

2,777

15

Beneficial Conversion Charge

'

'

'

'

'

'

'

'

'

'

50

-50

'

Exercise of stock warrants

'

'

'

'

'

'

'

'

'

-78

'

'

'

Exercise of stock warrants, additional paid in capital

'

'

'

'

'

'

'

'

'

'

78

'

'

Exercise of stock warrants, Shares

'

'

'

'

'

'

'

'

14,383

'

'

'

'

Changes in redemption value of preferred stock

-10,301

2,097

1,866

942

735

3,523

1,138

10,301

'

'

-1,270

-9,031

'

Amortization of stock-based compensation

1,142

'

'

'

'

'

'

'

'

'

1,142

'

'

Ending Balance at Jun. 30, 2013

-175,095

54,893

48,849

24,657

19,054

83,384

29,807

260,644

42

1,474

'

-176,822

211

Ending Balance, Common Shares at Jun. 30, 2013

'

'

'

'

'

'

'

'

4,248,360

'

'

'

'

Ending Balance, Preferred Shares at Jun. 30, 2013

'

3,697,377

3,290,294

1,646,595

1,250,000

4,194,366

2,007,743

16,086,375

'

'

'

'

'

Beginning Balance at Dec. 29, 2013

153,273

'

'

'

'

'

'

'

291

909

383,077

-231,232

228

Beginning Balance, Common Shares at Dec. 29, 2013

29,148,029

'

'

'

'

'

'

'

29,148,029

'

'

'

'

Net income

1,715

'

'

'

'

'

'

'

'

'

'

1,709

6

Issuance of unrestricted common stock

400

'

'

'

'

'

'

'

'

'

400

'

'

Issuance of unrestricted common stock, Shares

'

'

'

'

'

'

'

'

25,663

'

'

'

'

Exercise of stock options

2,628

'

'

'

'

'

'

'

4

'

2,624

'

'

Exercise of stock options, Shares

297,000

'

'

'

'

'

'

'

297,002

'

'

'

'

Distribution to non-controlling interest

-26

'

'

'

'

'

'

'

'

'

'

'

-26

Amortization of stock-based compensation

1,041

'

'

'

'

'

'

'

'

'

1,041

'

'

Ending Balance at Jun. 29, 2014

$159,031

'

'

'

'

'

'

'

$295

$909

$387,142

($229,523)

$208

Ending Balance, Common Shares at Jun. 29, 2014

29,470,694

'

'

'

'

'

'

'

29,470,694

'

'

'

'

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 29, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income	$1,715	$2,792
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation	9,501	8,824
Deferred income tax	121	1,134
Deferred rent and landlord allowances	723	90
Stock compensation expense	1,441	1,142
Asset impairment and disposal of property and equipment	877	79
Amortization of debt issuance costs	35	29
Changes in operating assets and liabilities:	'	'
Accounts receivable, net	-958	-781
Inventories	-90	-150
Prepaid expenses and other assets	-2,035	-1,453
Accounts payable	1,351	831
Accrued and other liabilities	-910	1,218
Net cash provided by operating activities	11,771	13,755
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchases of property and equipment	-13,386	-14,411
Net cash (used in) investing activities	-13,386	-14,411
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from exercise of stock options	3,337	0
Payment of payroll taxes related to stock-based compensation awards	-709	0
Payment of costs associated with initial public offering	0	-160
Distribution to non-controlling interest	-26	0
Payments on note payable	-42	-33
Net cash provided by (used in) financing activities	2,560	-193
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	945	-849
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	69,579	22,595
CASH AND CASH EQUIVALENTS AT END OF PERIOD	70,524	21,746
Supplemental cash flow information:	'	'
Income taxes paid	700	397
Interest paid	84	197
Supplemental non-cash investing and financing activities:	'	'
Unpaid liability for purchases of property and equipment	2,424	2,076
Accretion of redeemable convertible preferred stock to maximum redemption value	$0	$10,301

Organization_and_Other_Matters

Organization and Other Matters	6 Months Ended
	Jun. 29, 2014
Accounting Policies [Abstract]	'
Organization and Other Matters	'
	(1) Organization and Other Matters
	Business
	Potbelly Corporation (the “Company” or “Potbelly”), through its wholly owned subsidiaries, operates Potbelly Sandwich Works sandwich shops in 22 states and the District of Columbia. As of June 29, 2014, the Company had 312 company-operated shops. During the 26 weeks ended June 29, 2014, the Company opened 16 new company-operated shops and closed no shops.
	The Company also sells and administers franchises of new Potbelly Sandwich Works sandwich shops. The first domestic and international franchise locations administered by the Company opened during February 2011. As of June 29, 2014, 13 franchised shops were in operation in domestic locations and 13 franchised shops were in operation internationally.
	Basis of Presentation
	The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Potbelly Corporation and its subsidiaries and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2013. The unaudited condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of December 29, 2013 and June 29, 2014, its statement of operations for the 13 and 26 weeks ended June 30, 2013 and June 29, 2014 and its statement of cash flows for the 26 weeks ended June 30, 2013 and June 29, 2014 have been included. The consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year.
	The Company does not have any components of other comprehensive income (loss) recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income (loss) in its consolidated financial statements.
	Principles of Consolidation
	The unaudited condensed consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC, Potbelly Sandwich Works, LLC (“LLC”) and 17 of LLC’s wholly owned subsidiaries, collectively, the “Company.” All significant intercompany balances and transactions have been eliminated in consolidation. For the Company’s consolidated joint venture, non-controlling interest represents the non-controlling partner’s share of the assets, liabilities and operations related to the joint venture investment in Potbelly Airport II Boston, LLC, related to one shop located in the Boston Logan International Airport. The Company owns a seventy-five percent interest in this consolidated joint venture.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions, primarily related to long-lived assets, income taxes, stock-based compensation and common stock equity valuations, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Fiscal Year
	The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar year. Approximately every five or six years a 53rd week is added. Fiscal 2013 and 2014 each consist of 52 weeks. The fiscal quarters ended June 30, 2013 and June 29, 2014 each consisted of 13 weeks.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jun. 29, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	(2) Fair Value Measurements
	The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate fair values due to the short maturities of these balances.
	The Company assesses potential impairments to its long-lived assets, which includes property and equipment, whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset. The fair value of the shop assets was determined using the discounted future cash flow method of anticipated cash flows through the shop’s lease-end date using fair value measurement inputs classified as Level 3. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. After performing a periodic review of our shops during the first fiscal quarter of 2014, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance of shop profitability. We performed an impairment analysis related to these shops and recorded an impairment charge of $0.8 million related to the excess of the carrying amounts recorded on our balance sheet over the identified shops’ estimated fair values as of March 30, 2014. As of June 29, 2014, no additional indicators of impairment were noted.

Earnings_per_share

Earnings per share	6 Months Ended
	Jun. 29, 2014
Earnings Per Share [Abstract]	'
Earnings per share	'
	(3) Earnings per share
	Basic income (loss) per common share attributable to common stockholders is calculated using the weighted average number of common shares outstanding for the period. For the 13 and 26 weeks ended June 30, 2013, diluted (loss) per common share attributable to common stockholders was computed by dividing the (loss) allocated to common stockholders utilizing the two-class method by the weighted average number of fully diluted common shares outstanding. In periods with net income attributable to common stockholders, the Company’s redeemable convertible preferred stock were all considered participating securities requiring the two-class method to calculate basic and diluted earnings per share. However, in periods of a net (loss) attributable to common stockholders, the redeemable convertible preferred stock were excluded from the computation of basic earnings per share due to the fact that they are not required to fund losses and the redemption amount is not reduced as a result of losses. For the 13 and 26 weeks ended June 30, 2013, the dilutive securities did not include stock options awarded to employees that had a performance condition requiring the completion of an initial public offering of common stock, as that performance condition was not satisfied at the reporting date and the holders of these options had no rights in our undistributed earnings until that time. On October 9, 2013, the Company completed an initial public offering. Effective upon the closing of such offering, all of the shares of preferred stock and non-voting common stock converted into common stock. As a result of the conversion, for subsequent reporting periods, the Company no longer utilized the two-class method in its calculation of diluted income (loss) per common share attributable to common stockholders. For the 13 and 26 weeks ended June 29, 2014, diluted income (loss) per common share attributable to common stockholders was calculated using income available to common shareholders divided by diluted weighted-average shares of common stock outstanding during the period.
		For the 13 Weeks Ended					For the 26 Weeks Ended
		June 29,		June 30,			June 29,		June 30,
		2014		2013			2014		2013
	Calculation of undistributed income (loss) for basic and diluted shares:
	Net income attributable to Potbelly Corporation	$	2,010	$	2,759		$	1,709	$	2,777
	Less: Accretion of redeemable convertible preferred stock to maximum redemption value		—		(2,905	)		—		(10,301	)
	Undistributed income (loss) for basic and diluted shares	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Allocation of undistributed income (loss) to participating securities:
	Common shares	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Redeemable convertible preferred shares		—		—			—		—
	Undistributed income (loss)	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Weighted average common shares outstanding-basic		29,342,528		4,244,879			29,246,676		4,241,752
	Plus: Effect of potential stock options exercise		1,046,198		—			1,258,203		—
	Plus: Effect of potential warrant exercise		120,827		—			138,013		—
	Weighted average common shares outstanding-diluted		30,509,553		4,244,879			30,642,892		4,241,752
	Income (loss) per share available to common stockholders-basic	$	0.07	$	(0.03	)	$	0.06	$	(1.77	)
	Income (loss) per share available to common stockholders-diluted	$	0.07	$	(0.03	)	$	0.06	$	(1.77	)
	Potentially dilutive shares that are considered anti-dilutive:
	Common share options		242,636		4,399,773			242,636		4,399,773
	Warrants		—		345,213			—		345,213
	For the 13 and 26 weeks ended June 30, 2013, the Company’s potential common stock instruments such as common share options and warrants were not included in the computation of diluted (loss) per common share as the effect of including these shares in the calculation would have been anti-dilutive. For the 13 and 26 weeks ended June 29, 2014, 242,636 common share options were not included in the computation of diluted income per common share for the respective periods, as the effect of including these shares in the calculation would have been anti-dilutive.

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 29, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	(4) Income Taxes
	The Company recognized income tax expense of $1.2 million on pre-tax income of $2.9 million, or an effective tax rate of 41.5%, for the 26 weeks ended June 29, 2014, compared to income tax expense of $1.9 million on pre-tax income of $4.7 million or an effective tax rate of 40.3%, for the 26 weeks ended June 30, 2013. The difference between the statutory rate and the effective tax rate is primarily attributable to state income taxes offset by certain federal and state tax credits. The increase in the effective tax rate primarily relates to the expiration of certain federal income tax credits for 2014 that were available in prior years.

Capital_Stock

Capital Stock	6 Months Ended
	Jun. 29, 2014
Equity [Abstract]	'
Capital Stock	'
	(5) Capital Stock
	On October 9, 2013, the Company completed an initial public offering. Effective upon the closing of such offering, all shares of preferred stock and non-voting common stock converted into common stock. The terms of the non-voting common stock provided that all shares of non-voting common stock would convert into voting common stock on a 1:1 basis immediately prior to the closing of an underwritten IPO or sale of the Company. The redeemable convertible preferred stock included down-round provisions which would adjust the conversion price for any additional stock issued without consideration or for a consideration per share less than the respective conversion price for one or more of the series of preferred stock in effect immediately prior to the issuance of such additional stock. Each share of common stock has the same relative rights and was identical in all respects to each other share of common stock. Each holder of shares of common stock is entitled to one vote for each share held by such holder at all meetings of stockholders.

StockBased_Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 29, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Stock-Based Compensation	'
	(6) Stock-Based Compensation
	During the first quarter of 2014, the Company issued 247,767 stock options under the 2013 Long-Term Incentive Plan to eligible employees and key executives. The fair value of the options was determined using the Black-Scholes option pricing model. The Company used the following assumptions for purposes of valuing these option grants: common stock fair value of $20.53 per share; expected life of options – seven years; volatility- 49.61%; risk-free interest rate – 1.13%; and dividend yield – 0.00%. The Company used the simplified method for determining the expected life of the options. Due to the lack of historical data as a newly public company, the Company calculated the specific stock price volatility using a blended volatility rate based on comparable publicly traded companies.
	A summary of activity for the 26 weeks ended June 29, 2014 is as follows:
	Options	Shares			Weighted		Aggregate		Weighted
		(Thousands)			Average		Intrinsic		Average
					Exercise		Value		Remaining
					Price		(Thousands)		Term
									(Years)
	Outstanding—December 29, 2013		5,030		$	9.41	$	78,575		6.31
	Granted		273			20.09
	Exercised		(297	)		8.91
	Canceled		(57	)		12.3
	Outstanding—June 29, 2014		4,949			9.99	$	29,147		6.05
	Exercisable—June 29, 2014		3,650			9.73	$	29,610		5.74
	In May 2014, the Company issued 25,663 shares of unrestricted common stock to certain non-employee members of its Board of Directors. The unrestricted stock had a weighted average grant-date share price of $15.60 upon issuance. The Company recorded $0.4 million in stock-based compensation expense, with a corresponding increase to additional paid-in capital, related to the issuance of common stock.
	In accordance with ASC Topic 718, Compensation—Stock Compensation, stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period, which is generally the vesting period of the grant, with a corresponding increase to additional paid-in-capital. For the 13 and 26 weeks ended June 29, 2014, the Company recognized $1.0 million and $1.4 million, respectively, which includes $0.4 million related to the May 2014 unrestricted common stock grants. For the 13 and 26 weeks ended June 30, 2013, the Company recognized $0.4 million and $1.1 million, respectively. As of June 29, 2014, the unrecognized stock-based compensation expense was $6.6 million, which will be recognized through fiscal year 2018. The Company records stock-based compensation expense within general and administrative expenses in the consolidated statements of operations.

Subsequent_Events

Subsequent Events	6 Months Ended
	Jun. 29, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	(7) Subsequent Events
	On August 1, 2014, the Company’s Board of Directors authorized a share repurchase program of up to $35.0 million of the Company’s common stock. With this authorization, repurchases may be made at management’s discretion from time to time on the open market.

Organization_and_Other_Matters1

Organization and Other Matters (Policies)	6 Months Ended
	Jun. 29, 2014
Accounting Policies [Abstract]	'
Business	'
	Business
	Potbelly Corporation (the “Company” or “Potbelly”), through its wholly owned subsidiaries, operates Potbelly Sandwich Works sandwich shops in 22 states and the District of Columbia. As of June 29, 2014, the Company had 312 company-operated shops. During the 26 weeks ended June 29, 2014, the Company opened 16 new company-operated shops and closed no shops.
	The Company also sells and administers franchises of new Potbelly Sandwich Works sandwich shops. The first domestic and international franchise locations administered by the Company opened during February 2011. As of June 29, 2014, 13 franchised shops were in operation in domestic locations and 13 franchised shops were in operation internationally.
Basis of Presentation	'
	Basis of Presentation
	The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Potbelly Corporation and its subsidiaries and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2013. The unaudited condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of December 29, 2013 and June 29, 2014, its statement of operations for the 13 and 26 weeks ended June 30, 2013 and June 29, 2014 and its statement of cash flows for the 26 weeks ended June 30, 2013 and June 29, 2014 have been included. The consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year.
	The Company does not have any components of other comprehensive income (loss) recorded within its consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income (loss) in its consolidated financial statements.
Principles of Consolidation	'
	Principles of Consolidation
	The unaudited condensed consolidated financial statements include the accounts of Potbelly Corporation; its wholly owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly owned subsidiaries, Potbelly Franchising, LLC, Potbelly Sandwich Works, LLC (“LLC”) and 17 of LLC’s wholly owned subsidiaries, collectively, the “Company.” All significant intercompany balances and transactions have been eliminated in consolidation. For the Company’s consolidated joint venture, non-controlling interest represents the non-controlling partner’s share of the assets, liabilities and operations related to the joint venture investment in Potbelly Airport II Boston, LLC, related to one shop located in the Boston Logan International Airport. The Company owns a seventy-five percent interest in this consolidated joint venture.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions, primarily related to long-lived assets, income taxes, stock-based compensation and common stock equity valuations, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fiscal Year	'
	Fiscal Year
	The Company uses a 52/53-week fiscal year that ends on the last Sunday of the calendar year. Approximately every five or six years a 53rd week is added. Fiscal 2013 and 2014 each consist of 52 weeks. The fiscal quarters ended June 30, 2013 and June 29, 2014 each consisted of 13 weeks.
Stock-based Compensation	'
	In accordance with ASC Topic 718, Compensation—Stock Compensation, stock-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period, which is generally the vesting period of the grant, with a corresponding increase to additional paid-in-capital. For the 13 and 26 weeks ended June 29, 2014, the Company recognized $1.0 million and $1.4 million, respectively, which includes $0.4 million related to the May 2014 unrestricted common stock grants. For the 13 and 26 weeks ended June 30, 2013, the Company recognized $0.4 million and $1.1 million, respectively. As of June 29, 2014, the unrecognized stock-based compensation expense was $6.6 million, which will be recognized through fiscal year 2018. The Company records stock-based compensation expense within general and administrative expenses in the consolidated statements of operations.

Earnings_per_share_Tables

Earnings per share (Tables)	6 Months Ended
	Jun. 29, 2014
Earnings Per Share [Abstract]	'
Schedule of the Calculation of Weighted Average Common Shares Outstanding for Basic and Diluted Earnings per Share Available to Common Stockholders	'
		For the 13 Weeks Ended					For the 26 Weeks Ended
		June 29,		June 30,			June 29,		June 30,
		2014		2013			2014		2013
	Calculation of undistributed income (loss) for basic and diluted shares:
	Net income attributable to Potbelly Corporation	$	2,010	$	2,759		$	1,709	$	2,777
	Less: Accretion of redeemable convertible preferred stock to maximum redemption value		—		(2,905	)		—		(10,301	)
	Undistributed income (loss) for basic and diluted shares	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Allocation of undistributed income (loss) to participating securities:
	Common shares	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Redeemable convertible preferred shares		—		—			—		—
	Undistributed income (loss)	$	2,010	$	(146	)	$	1,709	$	(7,524	)
	Weighted average common shares outstanding-basic		29,342,528		4,244,879			29,246,676		4,241,752
	Plus: Effect of potential stock options exercise		1,046,198		—			1,258,203		—
	Plus: Effect of potential warrant exercise		120,827		—			138,013		—
	Weighted average common shares outstanding-diluted		30,509,553		4,244,879			30,642,892		4,241,752
	Income (loss) per share available to common stockholders-basic	$	0.07	$	(0.03	)	$	0.06	$	(1.77	)
	Income (loss) per share available to common stockholders-diluted	$	0.07	$	(0.03	)	$	0.06	$	(1.77	)
	Potentially dilutive shares that are considered anti-dilutive:
	Common share options		242,636		4,399,773			242,636		4,399,773
	Warrants		—		345,213			—		345,213

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 29, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'
Summary of Activity Under Plans and Agreement	'
	A summary of activity for the 26 weeks ended June 29, 2014 is as follows:
	Options	Shares			Weighted		Aggregate		Weighted
		(Thousands)			Average		Intrinsic		Average
					Exercise		Value		Remaining
					Price		(Thousands)		Term
									(Years)
	Outstanding—December 29, 2013		5,030		$	9.41	$	78,575		6.31
	Granted		273			20.09
	Exercised		(297	)		8.91
	Canceled		(57	)		12.3
	Outstanding—June 29, 2014		4,949			9.99	$	29,147		6.05
	Exercisable—June 29, 2014		3,650			9.73	$	29,610		5.74

Organization_and_Other_Matters2

Organization and Other Matters - Additional Information (Detail)	6 Months Ended
	Jun. 29, 2014
	Store
Nature Of Business And Basis Of Presentation [Line Items]	'
Number of sandwich works and shops operation states	22
Domestic Operations [Member]	'
Nature Of Business And Basis Of Presentation [Line Items]	'
Number of shops	13
International Operations [Member]	'
Nature Of Business And Basis Of Presentation [Line Items]	'
Number of shops	13
Company Operated Shops [Member]	'
Nature Of Business And Basis Of Presentation [Line Items]	'
Number of shops	312
Number of closed stores	0
New Shops [Member]	'
Nature Of Business And Basis Of Presentation [Line Items]	'
Number of shops	16

Fair_Value_Measurements_Additi

Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended			6 Months Ended
In Thousands, unless otherwise specified	Jun. 29, 2014	Mar. 30, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Fair Value Disclosures [Abstract]	'	'	'	'	'
Impairment charges	$29	$800	$53	$877	$79

Earnings_Per_Share_Schedule_of

Earnings Per Share - Schedule of the Calculation of Weighted Average Common Shares Outstanding for Basic and Diluted Earnings per Share Available to Common Stockholders (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Calculation of undistributed income (loss) for basic and diluted shares:	'	'	'	'
Net income attributable to Potbelly Corporation	$2,010	$2,759	$1,709	$2,777
Less: Accretion of redeemable convertible preferred stock to maximum redemption value	0	-2,905	0	-10,301
Undistributed income (loss) for basic and diluted shares	2,010	-146	1,709	-7,524
Allocation of undistributed income (loss) to participating securities:	'	'	'	'
Undistributed income (loss)	2,010	-146	1,709	-7,524
Weighted average common shares outstanding-basic	29,342,528	4,244,879	29,246,676	4,241,752
Plus: Effect of potential stock options exercise	1,046,198	0	1,258,203	0
Plus: Effect of potential warrant exercise	120,827	0	138,013	0
Weighted average common shares outstanding-diluted	30,509,553	4,244,879	30,642,892	4,241,752
Income (loss) per share available to common stockholders-basic	$0.07	($0.03)	$0.06	($1.77)
Income (loss) per share available to common stockholders-diluted	$0.07	($0.03)	$0.06	($1.77)
Common Share Options [Member]	'	'	'	'
Allocation of undistributed income (loss) to participating securities:	'	'	'	'
Potentially dilutive shares that are considered anti-dilutive	242,636	4,399,773	242,636	4,399,773
Common Stock [Member]	'	'	'	'
Allocation of undistributed income (loss) to participating securities:	'	'	'	'
Undistributed income (loss)	2,010	-146	1,709	-7,524
Warrants [Member]	'	'	'	'
Allocation of undistributed income (loss) to participating securities:	'	'	'	'
Potentially dilutive shares that are considered anti-dilutive	0	345,213	0	345,213
Redeemable Convertible Preferred Stock [Member]	'	'	'	'
Allocation of undistributed income (loss) to participating securities:	'	'	'	'
Undistributed income (loss)	'	'	$0	'

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail) (Common Share Options [Member])	3 Months Ended		6 Months Ended
	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Common Share Options [Member]	'	'	'	'
Earnings Per Share [Line Items]	'	'	'	'
Antidilutive Securities Excluded from computation of diluted income per common share	242,636	4,399,773	242,636	4,399,773

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Income tax expense	$1,407	$1,869	$1,216	$1,886
Pre-tax income	$3,414	$4,639	$2,931	$4,678
Effective tax rate	'	'	41.50%	40.30%

Capital_Stock_Additional_Infor

Capital Stock - Additional Information (Detail)	6 Months Ended
	Jun. 29, 2014
Equity [Abstract]	'
Terms of non-voting Common stock conversion basis ratio	'The terms of the non-voting common stock provided that all shares of non-voting common stock would convert into voting common stock on a 1:1 basis immediately prior to the closing of an underwritten IPO or sale of the Company.
Non-voting Common stock conversion basis ratio	1

StockBased_Compensation_Additi

Stock-Based Compensation - Additional Information (Detail) (USD $)	0 Months Ended	1 Months Ended	3 Months Ended		6 Months Ended		3 Months Ended
	31-May-14	31-May-14	Jun. 29, 2014	Jun. 30, 2013	Jun. 29, 2014	Jun. 30, 2013	Mar. 30, 2014
							2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'
Stock options issued	'	'	'	'	273,000	'	247,767
Common stock fair value	'	'	'	'	'	'	$20.53
Expected life of options	'	'	'	'	'	'	'7 years
Volatility	'	'	'	'	'	'	49.61%
Risk-free interest rate	'	'	'	'	'	'	1.13%
Dividend yield	'	'	'	'	'	'	0.00%
Method used to determine fair value of the options	'	'	'	'	'	'	'Black-Scholes option pricing model
Issuance of unrestricted common stock	25,663	'	'	'	'	'	'
Weighted average grant-date share price	$15.60	'	'	'	'	'	'
Weighted average share value of unrestricted common stock	$400,000	'	'	'	'	'	'
Recognized stock compensation expense	'	400,000	1,000,000	400,000	1,441,000	1,142,000	'
Unrecognized stock compensation expense	'	'	$6,600,000	'	$6,600,000	'	'
Unrecognized stock compensation expense, recognition period	'	'	'	'	'Through 2018	'	'

StockBased_Compensation_Summar

Stock-Based Compensation - Summary of Activity Under Plans and Agreement (Detail) (USD $)	6 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 29, 2014	Dec. 29, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]	'	'
Options Outstanding shares, Beginning balance	'	5,030
Options Outstanding shares, Granted	273	'
Options Outstanding shares, Exercised	-297	'
Options Outstanding shares, Canceled	-57	'
Options Outstanding shares, Ending balance	4,949	'
Options Outstanding shares, Exercisable	3,650	'
Options outstanding weighted average exercise price, Granted	$20.09	'
Options outstanding weighted average exercise price, Exercised	$8.91	'
Options outstanding weighted average exercise price, Canceled	$12.30	'
Options outstanding weighted average exercise price, Ending balance	$9.99	$9.41
Options outstanding weighted average exercise price, Exercisable	$9.73	'
Options Outstanding Aggregate Intrinsic value	$29,147	$78,575
Options Exercisable Aggregate Intrinsic Value	$29,610	'
Option Outstanding Weighted Average Remaining Term	'6 years 18 days	'6 years 3 months 22 days
Options Exercisable Weighted Average Remaining Term	'5 years 8 months 27 days	'

Subsequent_Events_Additional_I

Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $)	Aug. 01, 2014
In Millions, unless otherwise specified
Subsequent Event [Member]	'
Subsequent Event [Line Items]	'
Stock repurchase program, authorized amount	$35