Potbelly (PBPB) 10-Q 1 Nov 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 24, 2023	Oct. 22, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 24, 2023
Document Transition Report	false
Entity File Number	001-36104
Entity Registrant Name	Potbelly Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-4466837
Entity Address, Address Line One	111 N. Canal Street
Entity Address, Address Line Two	Suite 325
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60606
City Area Code	312
Local Phone Number	951-0600
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	PBPB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,358,757
Entity Central Index Key	0001195734
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Current assets
Cash and cash equivalents	$ 30,938	$ 15,619
Accounts receivable, net of allowances of $50 and $16 as of September 24, 2023 and December 25, 2022, respectively	7,897	6,420
Inventories	3,585	3,990
Prepaid expenses and other current assets	5,637	4,501
Total current assets	48,057	30,530
Property and equipment, net	45,148	44,477
Right-of-use assets for operating leases	148,336	160,891
Indefinite-lived intangible assets	3,404	3,404
Goodwill	2,122	2,222
Restricted cash	749	0
Deferred expenses, net and other assets	3,465	3,647
Total assets	251,281	245,171
Current liabilities
Accounts payable	8,955	10,718
Accrued expenses	32,113	30,826
Short-term operating lease liabilities	27,536	27,395
Current portion of long-term debt	1,250	0
Total current liabilities	69,854	68,939
Long-term debt, net of current portion	20,918	8,550
Long-term operating lease liabilities	146,414	160,968
Other long-term liabilities	4,436	2,441
Total liabilities	241,622	240,898
Commitments and contingencies (Note 11)
Equity
Common stock, $0.01 par value—authorized 200,000 shares; outstanding 29,350 and 28,819 shares as of September 24, 2023 and December 25, 2022, respectively	389	384
Warrants	2,219	2,566
Additional paid-in-capital	460,543	455,831
Treasury stock, held at cost, 10,058 and 9,924 shares as of September 24, 2023, and December 25, 2022, respectively	(116,638)	(115,388)
Accumulated deficit	(336,532)	(338,916)
Total stockholders’ equity	9,981	4,477
Non-controlling interest	(322)	(204)
Total equity	9,659	4,273
Total liabilities and equity	$ 251,281	$ 245,171

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Statement of Financial Position [Abstract]
Accounts receivable, net of allowances	$ 50	$ 16
Common stock (in USD per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000	200,000
Common stock, outstanding (in shares)	29,350	28,819
Treasury stock (in shares)	10,058	9,924

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Revenues
Total revenues	$ 120,768	$ 117,649	$ 365,660	$ 331,823
Sandwich shop operating expenses, excluding depreciation
Food, beverage and packaging costs	32,901	34,814	100,424	94,952
Labor and related expenses	34,188	36,031	108,556	105,405
Occupancy expenses	12,653	13,559	39,046	41,209
Other operating expenses	21,277	19,743	62,686	56,977
Franchise support, rent and marketing expenses	1,553	115	3,359	361
General and administrative expenses	11,894	9,554	33,558	26,899
Depreciation expense	3,044	2,922	8,902	9,089
Pre-opening costs	59	0	114	0
Loss on Franchise Growth Acceleration Initiative activities	110	0	1,073	0
Impairment, loss on disposal of property and equipment and shop closures	458	1,616	2,161	3,980
Total expenses	118,137	118,354	359,879	338,872
Income (loss) from operations	2,631	(705)	5,781	(7,049)
Interest expense, net	853	354	2,531	1,037
(Gain)/loss on extinguishment of debt	0	(10,191)	239	(10,191)
Income before income taxes	1,778	9,132	3,011	2,105
Income tax expense (benefit)	129	(4)	186	148
Net income	1,649	9,136	2,825	1,957
Net income attributable to non-controlling interest	154	107	442	267
Net income attributable to Potbelly Corporation	$ 1,495	$ 9,029	$ 2,383	$ 1,690
Net income per common share attributable to common stockholders:
Basic (in USD per share)	$ 0.05	$ 0.31	$ 0.08	$ 0.06
Diluted (in USD per share)	$ 0.05	$ 0.31	$ 0.08	$ 0.06
Weighted average shares outstanding:
Basic (in shares)	29,324	28,726	29,143	28,563
Diluted (in shares)	30,028	28,867	29,915	28,947
Sandwich shop sales, net
Revenues
Total revenues	$ 118,340	$ 116,449	$ 359,995	$ 328,873
Franchise royalties, fees and rent income
Revenues
Total revenues	$ 2,428	$ 1,200	$ 5,665	$ 2,950

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Warrants	Additional Paid-In- Capital	Accumulated Deficit	Non- Controlling Interest
Beginning balance (in shares) at Dec. 26, 2021		28,380
Beginning balance at Dec. 26, 2021	$ (2,417)	$ 380	$ (114,577)	$ 2,566	$ 452,570	$ (343,261)	$ (95)
Net income	(7,887)					(7,913)	26
Shares issued under equity compensation plan (in shares)		81
Shares issued under equity compensation plan	(278)	$ 1	(279)
Distributions to non-controlling interest	(120)						(120)
Stock-based compensation expense	675				675
Ending balance (in shares) at Mar. 27, 2022		28,461
Ending balance at Mar. 27, 2022	(10,027)	$ 381	(114,856)	2,566	453,245	(351,174)	(189)
Beginning balance (in shares) at Dec. 26, 2021		28,380
Beginning balance at Dec. 26, 2021	(2,417)	$ 380	(114,577)	2,566	452,570	(343,261)	(95)
Net income	1,957
Ending balance (in shares) at Sep. 25, 2022		28,791
Ending balance at Sep. 25, 2022	909	$ 384	(115,331)	2,566	455,012	(341,571)	(151)
Beginning balance (in shares) at Mar. 27, 2022		28,461
Beginning balance at Mar. 27, 2022	(10,027)	$ 381	(114,856)	2,566	453,245	(351,174)	(189)
Net income	708					574	134
Shares issued under equity compensation plan (in shares)		235
Shares issued under equity compensation plan	(326)	$ 2	(325)		(3)
Distributions to non-controlling interest	(56)						(56)
Stock-based compensation expense	820				820
Ending balance (in shares) at Jun. 26, 2022		28,696
Ending balance at Jun. 26, 2022	(8,881)	$ 383	(115,181)	2,566	454,062	(350,600)	(111)
Net income	9,136					9,029	107
Shares issued under equity compensation plan (in shares)		95
Shares issued under equity compensation plan	(150)	$ 1	(150)		(1)
Distributions to non-controlling interest	(147)						(147)
Stock-based compensation expense	951				951
Ending balance (in shares) at Sep. 25, 2022		28,791
Ending balance at Sep. 25, 2022	$ 909	$ 384	(115,331)	2,566	455,012	(341,571)	(151)
Beginning balance (in shares) at Dec. 25, 2022	28,819	28,819
Beginning balance at Dec. 25, 2022	$ 4,273	$ 384	(115,388)	2,566	455,831	(338,916)	(204)
Net income	(1,204)					(1,327)	123
Shares issued under equity compensation plan (in shares)		70
Shares issued under equity compensation plan	(337)	$ 1	(337)		(1)
Distributions to non-controlling interest	(152)						(152)
Issuance of common shares and warrants, net of fees (in shares)		159
Proceeds from exercise of warrants	865	$ 1		(313)	1,177
Stock-based compensation expense	911				911
Ending balance (in shares) at Mar. 26, 2023		29,048
Ending balance at Mar. 26, 2023	$ 4,356	$ 386	(115,725)	2,253	457,918	(340,243)	(233)
Beginning balance (in shares) at Dec. 25, 2022	28,819	28,819
Beginning balance at Dec. 25, 2022	$ 4,273	$ 384	(115,388)	2,566	455,831	(338,916)	(204)
Net income	$ 2,825
Ending balance (in shares) at Sep. 24, 2023	29,350	29,350
Ending balance at Sep. 24, 2023	$ 9,659	$ 389	(116,638)	2,219	460,543	(336,532)	(322)
Beginning balance (in shares) at Mar. 26, 2023		29,048
Beginning balance at Mar. 26, 2023	4,356	$ 386	(115,725)	2,253	457,918	(340,243)	(233)
Net income	2,381					2,216	165
Shares issued under equity compensation plan (in shares)		243
Shares issued under equity compensation plan	(771)	$ 3	(772)		(2)
Distributions to non-controlling interest	(166)						(166)
Issuance of common shares and warrants, net of fees (in shares)		18
Proceeds from exercise of warrants	96			(34)	130
Stock-based compensation expense	1,305				1,305
Ending balance (in shares) at Jun. 25, 2023		29,309
Ending balance at Jun. 25, 2023	7,201	$ 389	(116,497)	2,219	459,351	(338,027)	(234)
Net income	1,649					1,495	154
Shares issued under equity compensation plan (in shares)		41
Shares issued under equity compensation plan	(141)	$ 0	(141)		0
Distributions to non-controlling interest	(242)						(242)
Issuance of common shares and warrants, net of fees (in shares)		0
Proceeds from exercise of warrants	0			0	0
Stock-based compensation expense	$ 1,192				1,192
Ending balance (in shares) at Sep. 24, 2023	29,350	29,350
Ending balance at Sep. 24, 2023	$ 9,659	$ 389	$ (116,638)	$ 2,219	$ 460,543	$ (336,532)	$ (322)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022
Cash flows from operating activities:
Net income	$ 2,825	$ 1,957
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	8,902	9,089
Noncash lease expense	18,890	19,511
Deferred income tax	(82)	14
Stock-based compensation expense	3,408	2,446
Asset impairment, loss on disposal of property and equipment and shop closures	824	3,980
Loss on Franchise Growth Acceleration Initiative activities	1,030	0
(Gain)/loss on extinguishment of debt	224	(10,191)
Other operating activities	331	205
Changes in operating assets and liabilities:
Accounts receivable, net	(1,499)	(2,286)
Inventories	227	(169)
Prepaid expenses and other assets	(934)	(491)
Accounts payable	(2,019)	1,352
Operating lease liabilities	(20,473)	(21,163)
Accrued expenses and other liabilities	2,847	(3,236)
Net cash provided by operating activities:	14,501	1,018
Cash flows from investing activities:
Purchases of property and equipment	(12,252)	(4,914)
Proceeds from sale of refranchised shops	1,362	0
Net cash used in investing activities:	(10,890)	(4,914)
Cash flows from financing activities:
Payment of debt issuance costs	(2,204)	(176)
Proceeds from exercise of warrants	961	0
Employee taxes on certain stock-based payment arrangements	(1,251)	(702)
Distributions to non-controlling interest	(560)	(323)
Net cash provided by financing activities:	12,458	(951)
Net increase (decrease) in cash and cash equivalents and restricted cash	16,069	(4,847)
Cash and cash equivalents and restricted cash at beginning of period	15,619	14,353
Cash and cash equivalents and restricted cash at end of period	31,688	9,506
Supplemental cash flow information:
Income taxes paid	428	139
Interest paid	2,349	662
Supplemental non-cash investing and financing activities:
Gain (loss) on extinguishment of debt and accrued interest	(224)	10,191
Unpaid liability for purchases of property and equipment	859	573
Unpaid liability for employee taxes on certain stock-based payment arrangements	38	52
Term loan credit facility
Cash flows from financing activities:
Borrowings under revolving credit facility	25,000	0
Repayments under revolving credit facility	(938)	0
Revolving Credit Facility
Cash flows from financing activities:
Borrowings under revolving credit facility	14,600	30,550
Repayments under revolving credit facility	$ (23,150)	$ (30,300)

Organization and Other Matters

Organization and Other Matters	9 Months Ended
	Sep. 24, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Other Matters	Organization and Other Matters Business Potbelly Corporation, a Delaware corporation, together with its subsidiaries (collectively referred to as the "Company," "Potbelly," "we," "us" or "our"), owns and operates 361 company-operated shops in the United States as of September 24, 2023. Additionally, Potbelly franchisees operate 69 shops domestically. 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 and its subsidiaries and the notes thereto included in our Annual Report on Form 10-K for the year ended December 25, 2022. The unaudited condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the SEC rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported within. . The condensed consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. We do not have any components of other comprehensive income recorded within our consolidated financial statements and therefore, do not separately present a statement of comprehensive income in our condensed consolidated financial statements. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Potbelly; its wholly-owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly-owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC (“PSW”); seven of PSW’s wholly-owned subsidiaries and PSW’s six joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For our six consolidated joint ventures, "non-controlling interest" represents the non-controlling partner’s share of the assets, liabilities and operations related to the joint venture investments. Potbelly has ownership interests ranging from 51-80% in these consolidated joint ventures. Fiscal Year We use a 52/53-week fiscal year that ends on the last Sunday of the calendar period. Approximately every five or six years a 53rd week is added. Fiscal year 2023 consists of 53 weeks and fiscal year 2022 consisted of 52 weeks. The fiscal quarters ended September 24, 2023 and September 25, 2022 each consisted of 13 weeks. The year to date periods ended September 24, 2023 and September 25, 2022 each consisted of 39 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant estimates include amounts for long-lived assets and income taxes. Actual results could differ from those estimates. Franchise Growth Acceleration Initiative On March 2, 2022, we announced our Franchise Growth Acceleration Initiative, which included a plan to grow our franchise units domestically through multi-unit shop development area agreements, which may include refranchising certain company-operated shops. Deals for refranchised shops typically include cash consideration for the sale of the current shops as well as development agreement fees for commitments to develop new shops to fully penetrate existing markets. On an ongoing basis, we collect additional cash consideration for royalties and lease payments. All gains and losses recognized on sales of shops and other expenses incurred to execute a refranchising transaction are included in Loss on Franchising Growth Acceleration Initiative activities in the condensed consolidated statement of operations. Development agreement fees received are recorded in the consolidated balance sheets as accrued expenses or other long-term liabilities, and amortized over the term of the franchise agreement once the shops are opened. For the year to date ended September 24, 2023, we completed refranchising transactions under the Franchise Growth Acceleration Initiative that resulted in the sale of 20 company-operated shops and commitments to develop 28 additional shops. Further details on the impact of these transactions on our financial statements are described in Notes 8 and 12. Restricted Cash As of September 24, 2023, we had restricted cash related to funds held in a money market account as collateral for letters of credit to certain lease agreements. The reconciliation of cash and cash equivalents and restricted cash presented in the condensed consolidated balance sheets to the total amount shown in our condensed consolidated statements of cash flows is as follows: September 24, December 25, Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 30,938 $ 15,619 Restricted cash, noncurrent 749 — Total cash, cash equivalents and restricted cash shown on statement of cash flows $ 31,688 $ 15,619 Potbelly Brand Fund We maintain the Potbelly Brand Fund (the "Brand Fund") for the purpose of collecting and administering funds to be used for advertising, customer research, marketing technology, agencies, and other activities that promote the Potbelly brand in order to deliver sales at our shops. Company-operated and franchised shops both contribute to the Brand Fund based on a percentage of sales. We manage these advertising and marketing expenses through the Brand Fund using the funds contributed by our shops. These funds are managed separately from our general operating expenses, but we are not obligated to maintain the funds in separate accounts or entities. We may spend more or less in any fiscal period than the amounts contributed to the Brand Fund, and we may choose to roll over any unused contributions to the following fiscal period or return them to shops. Brand Fund contributions made by company-operated shops are eliminated from the consolidated financial statements. Franchisee contributions are included within franchise royalties and fees in the condensed consolidated statements of operations. Expenses incurred by the Brand Fund are recorded to company-operated and franchised shops based on a percentage of sales. Company-operated Brand Fund expense is included within other operating expenses in our condensed consolidated statements of operations. Franchisee Brand Fund expense is presented within franchise support, rent and marketing expenses in our condensed consolidated statements of operations.

Revenue

Revenue	9 Months Ended
	Sep. 24, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We primarily earn revenue at a point in time for sandwich shop sales, which can occur in person at a shop, through our online or app platform, or through a third-party platform. Sales taxes collected from customers are excluded from revenues and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. We have other revenue generating activities where revenue is generally recognized over time, as outlined below. For the year to date ended September 24, 2023, revenue recognized from all revenue sources on point in time sales was $363.4 million, and revenue recognized from sales over time was $2.2 million. For the year to date ended September 25, 2022, revenue recognized from all revenue sources on point in time sales was $330.6 million and revenue recognized from sales over time was $1.2 million. Franchise Revenue, including Rent Income We earn an initial franchise fee, a franchise development agreement fee and ongoing fees for royalties and Brand Fund contributions under our franchise agreements. Initial franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. As such, these franchise fees are recognized over the contractual term of the franchise agreement. We record a contract liability for the unearned portion of the initial franchise fees. Franchise development agreement fees represent the exclusivity rights for a geographical area paid by a third party to develop Potbelly shops for a certain period of time. Franchise development agreement fee payments received by us are recorded in the consolidated balance sheets as accrued expenses or other long-term liabilities, and amortized over the term of the franchise agreement once the shops are opened. Royalties and Brand Fund contributions are based on a percentage of sales and are recorded as revenue as they are earned and become receivable from the franchisee. We also earn rent income from properties leased by Potbelly and subleased to franchisees. Rent income is recognized on a straight-line basis over the operating lease terms. See Note 6 for further detail. Gift Card Redemptions / Breakage Revenue Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer ("breakage"), which is recognized as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. We recognize gift card breakage income within sandwich shop sales, net in the condensed consolidated statements of operations. We recognized gift card breakage income of $0.6 million and $0.4 million for the year to date ended September 24, 2023 and September 25, 2022, respectively. Loyalty Program We offer a customer loyalty program for customers using the Potbelly Perks application at the point of sale. The customer will typically earn 10 points for every dollar spent, and the customer will earn a free entrée after earning 1,000 points. Once a customer earns a free entrée, that entrée reward will expire after 30 days. We defer revenue associated with the estimated selling price of points earned by Potbelly Perks members towards free entrées as each point is earned, and a corresponding deferred revenue liability is established in accrued expenses. The deferral is based on the estimated value of the unredeemed points and free entrées. The estimated value and the estimated redemption rates are based on a historical data analysis of loyalty reward redemptions. Estimated breakage is recognized in net shop sandwich sales in the consolidated statement of operations. When points are redeemed, we recognize revenue for the redeemed product and reduce accrued expenses. Contract Liabilities We record current and noncurrent contract liabilities in accrued expenses and other long-term liabilities, respectively, for initial franchise fees, gift cards, and loyalty programs. We have no other contract liabilities or contract assets recorded. The opening and closing balances of our current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of December 25, 2022 $ 7,008 $ 1,677 Ending balance as of September 24, 2023 6,279 3,502 Increase (decrease) in contract liability $ (729) $ 1,825 The aggregate value of remaining performance obligations on outstanding contracts was $9.8 million as of September 24, 2023. We expect to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2023 $ 2,931 2024 2,772 2025 318 2026 289 2027 256 Thereafter 3,272 Total revenue recognized $ 9,838 For the quarter and year to date ended September 24, 2023, the amount of revenue recognized related to the December 25, 2022 liability ending balance was $0.4 million and $2.5 million, respectively. For the quarter and year to date ended September 25, 2022, the amount of revenue recognized related to the December 26, 2021 liability ending balance was $0.4 million and $2.2 million. This revenue is related to the recognition of gift card redemptions and upfront franchise fees. For the quarters ended September 24, 2023 and September 25, 2022, we did not recognize any revenue from obligations satisfied (or partially satisfied) in prior periods.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 24, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement 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 book value of the long-term and short-term debt under the Credit Agreement, which is further discussed in Note 7, is considered to approximate its fair value as of September 24, 2023, as the interest rates are considered in line with current market rates. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value on the condensed consolidated financial statements on a nonrecurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill, and other intangible assets. These assets are measured at fair value if determined to be impaired. We assess potential impairments to our long-lived assets, which includes property and equipment and lease right-of-use assets, on a quarterly basis or whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Shop-level assets and right-of-use assets are grouped at the individual shop-level for the purpose of the impairment assessment. Recoverability of an asset group is measured by a comparison of the carrying amount of an asset group to its estimated undiscounted future cash flows expected to be generated by the asset group. 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 group exceeds the fair value of the asset group. The fair value of the shop assets is 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. The fair value of right-of-use assets is estimated using market comparative information for similar properties. 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 quarter and year to date ended September 24, 2023, it was determined that indicators of impairment were present for certain shops as a result of continued underperformance. We performed an impairment analysis related to these shops and recorded an impairment charge of $0.2 million and $0.9 million for the quarter and year to date ended September 24, 2023.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 24, 2023
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings Per ShareBasic and diluted income per common share attributable to common stockholders are calculated using the weighted average number of common shares outstanding for the period. Diluted income per common share attributable to common stockholders is computed by dividing the income allocated to common stockholders by the weighted average number of fully diluted common shares outstanding. In periods of a net loss, no potential common shares are included in diluted shares outstanding as the effect is anti-dilutive. The following table summarizes the earnings per share calculation: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Net income attributable to Potbelly Corporation $ 1,495 $ 9,029 $ 2,383 $ 1,690 Weighted average common stock outstanding-basic 29,324 28,726 29,143 28,563 Plus: Effect of potentially dilutive stock-based compensation awards 295 141 392 329 Plus: Effect of potential warrant exercise 409 — 380 55 Weighted average common shares outstanding-diluted 30,028 28,867 29,915 28,947 Income per share available to common stockholders-basic $ 0.05 $ 0.31 $ 0.08 $ 0.06 Income per share available to common stockholders-diluted $ 0.05 $ 0.31 $ 0.08 $ 0.06 Potentially dilutive shares that are considered anti-dilutive: Shares 437 2,620 367 647

Income Taxes

Income Taxes	9 Months Ended
	Sep. 24, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe interim tax provision is determined using an estimated annual effective tax rate and is adjusted for discrete taxable events that occur during the quarter. We regularly assess the need for a valuation allowance related to our deferred tax assets, which includes consideration of both positive and negative evidence related to the likelihood of realization of such deferred tax assets to determine, based on the weight of the available evidence, whether it is more-likely-than-not that some or all of our deferred tax assets will not be realized. In our assessment, we consider recent financial operating results, projected future taxable income, the reversal of existing taxable differences, and tax planning strategies. We recorded a full valuation allowance against our net deferred tax assets during the first quarter of 2019, resulting in a non-cash charge to income tax expense of $13.6 million. We continue to maintain a valuation allowance against all of our deferred tax assets as of September 24, 2023. We did not provide for an income tax expense on our pre-tax income for the quarter and year to date ended September 24, 2023 and September 25, 2022. We assess the likelihood of the realization of our deferred tax assets each quarter and the valuation allowance is adjusted accordingly.

Leases

Leases	9 Months Ended
	Sep. 24, 2023
Leases [Abstract]
Leases	Leases We determine if an arrangement is a lease at inception of the arrangement. We lease retail shops and warehouse and office space under operating leases. Our leases generally have terms of ten years and most include options to extend the leases for additional five-year periods. For leases with renewal periods at our option, we determine the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition, we lease certain properties from third parties that we sublease to franchisees. We remain primarily liable to the landlord for the performance of all obligations in the event that the sublessee does not perform its obligations under the lease. All of our subleases are classified as operating leases with fixed and variable income. Lessee Disclosures We did not terminate any leases during the quarter and year to date ended September 24, 2023. The weighted average operating lease term and discount rate were as follows: September 24, September 25, Weighted average remaining lease term (years) 6.27 6.77 Weighted average discount rate 8.74 % 8.17 % Certain of our operating lease agreements include variable payments that are passed through by the landlord, such as common area maintenance and real estate taxes, as well as variable payments based on percentage rent for certain of our shops. Pass-through charges and payments based on percentage rent are included within variable lease cost. The components of lease cost were as follows (in thousands), which are included in occupancy, general and administrative and franchise support, rent and marketing expense: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating lease cost $ 10,231 10,451 $ 30,406 31,041 Variable lease cost 3,825 2,797 11,188 9,649 Short-term lease cost 77 46 234 259 Total lease cost $ 14,133 13,294 $ 41,828 40,949 Supplemental disclosures of cash flow information related to leases were as follows (in thousands): For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating cash flows rent paid for operating lease liabilities $ 10,479 10,254 $ 31,685 31,179 Operating right-of-use assets obtained in exchange for new operating lease liabilities 4,745 7,361 8,997 17,537 Reduction in operating right-of-use assets due to lease terminations and modifications $ 1,392 84 $ 2,251 1,347 Maturities of lease liabilities were as follows (in thousands) as of September 24, 2023: Operating Leases Remainder of 2023 $ 10,448 2024 41,928 2025 39,356 2026 35,562 2027 29,730 2028 23,062 Thereafter 49,296 Total lease payments 229,382 Less: imputed interest (55,433) Present value of lease liabilities $ 173,949 As of September 24, 2023, we had no significant real estate leases entered into that had not yet commenced. Lessor Disclosures We recognized $0.8 million and $1.5 million in franchise rent income during the quarter and year to date ended September 24, 2023 respectively, which is included in franchise royalties, fees and rent income in the condensed consolidated statement of operations. During the quarter and year to date ended September 24, 2023, we incurred $0.9 million and $1.6 million in expenses associated with these leases, which are included in franchise support, rent and marketing expenses in the condensed consolidated statement of operations from the inception of the related sublease agreements. The components of lease income were as follows: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Number of subleases 20 — 20 — Operating lease income $ 559 $ — $ 1,159 $ — Variable lease income 266 — 304 — Franchise rent income $ 825 $ — $ 1,463 $ —
Leases	Leases We determine if an arrangement is a lease at inception of the arrangement. We lease retail shops and warehouse and office space under operating leases. Our leases generally have terms of ten years and most include options to extend the leases for additional five-year periods. For leases with renewal periods at our option, we determine the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease. In addition, we lease certain properties from third parties that we sublease to franchisees. We remain primarily liable to the landlord for the performance of all obligations in the event that the sublessee does not perform its obligations under the lease. All of our subleases are classified as operating leases with fixed and variable income. Lessee Disclosures We did not terminate any leases during the quarter and year to date ended September 24, 2023. The weighted average operating lease term and discount rate were as follows: September 24, September 25, Weighted average remaining lease term (years) 6.27 6.77 Weighted average discount rate 8.74 % 8.17 % Certain of our operating lease agreements include variable payments that are passed through by the landlord, such as common area maintenance and real estate taxes, as well as variable payments based on percentage rent for certain of our shops. Pass-through charges and payments based on percentage rent are included within variable lease cost. The components of lease cost were as follows (in thousands), which are included in occupancy, general and administrative and franchise support, rent and marketing expense: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating lease cost $ 10,231 10,451 $ 30,406 31,041 Variable lease cost 3,825 2,797 11,188 9,649 Short-term lease cost 77 46 234 259 Total lease cost $ 14,133 13,294 $ 41,828 40,949 Supplemental disclosures of cash flow information related to leases were as follows (in thousands): For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating cash flows rent paid for operating lease liabilities $ 10,479 10,254 $ 31,685 31,179 Operating right-of-use assets obtained in exchange for new operating lease liabilities 4,745 7,361 8,997 17,537 Reduction in operating right-of-use assets due to lease terminations and modifications $ 1,392 84 $ 2,251 1,347 Maturities of lease liabilities were as follows (in thousands) as of September 24, 2023: Operating Leases Remainder of 2023 $ 10,448 2024 41,928 2025 39,356 2026 35,562 2027 29,730 2028 23,062 Thereafter 49,296 Total lease payments 229,382 Less: imputed interest (55,433) Present value of lease liabilities $ 173,949 As of September 24, 2023, we had no significant real estate leases entered into that had not yet commenced. Lessor Disclosures We recognized $0.8 million and $1.5 million in franchise rent income during the quarter and year to date ended September 24, 2023 respectively, which is included in franchise royalties, fees and rent income in the condensed consolidated statement of operations. During the quarter and year to date ended September 24, 2023, we incurred $0.9 million and $1.6 million in expenses associated with these leases, which are included in franchise support, rent and marketing expenses in the condensed consolidated statement of operations from the inception of the related sublease agreements. The components of lease income were as follows: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Number of subleases 20 — 20 — Operating lease income $ 559 $ — $ 1,159 $ — Variable lease income 266 — 304 — Franchise rent income $ 825 $ — $ 1,463 $ —

Debt and Credit Facilities

Debt and Credit Facilities	9 Months Ended
	Sep. 24, 2023
Debt Disclosure [Abstract]
Debt and Credit Facilities	Debt and Credit Facilities The components of long-term debt were as follows (in thousands): September 24, December 25, Revolving credit facility $ — $ 8,550 Term loan credit facility 24,062 — Unamortized debt issuance costs (1,894) — Less: current portion of long-term debt (1,250) — Total long-term debt $ 20,918 $ 8,550 Term Loan Credit Facility On February 7, 2023 (the “Closing Date”), we entered into a credit and guaranty agreement (the “Credit Agreement”) with Sagard Holdings Manager LP as administrative agent (the “Administrative Agent”). The Credit Agreement provides for a term loan facility with an aggregate commitment of $25 million (the “Term Loan”). Concurrent with entry into the Credit Agreement, we repaid in full and terminated the obligations and commitments under our existing senior secured credit facility (the “Former Credit Facility”). Upon termination of the Former Credit Facility, we recognized a loss on extinguishment of debt of $0.2 million. The remaining proceeds from the Term Loan were used to pay related transaction fees and expenses, and for general corporate purposes. The Credit Agreement is scheduled to mature on February 7, 2028. We are required to make principal payments equal to 1.25% of the initial principal of the Term Loan on the last business day of each fiscal quarter. If not previously paid, any remaining principal balance must be repaid on the maturity date. Loans under the Credit Agreement will initially bear interest, at the Company’s option, at either the term SOFR plus 9.25% per annum or base rate plus 8.25% per annum. As of September 24, 2023, the effective interest rate was 14.94%. We may prepay the Term Loan in agreed-upon minimum principal amounts, subject to prepayment fees equal to (a) if the prepayment occurs on or prior to the one (1) year anniversary of the Closing Date, a customary make-whole amount plus 3.00% of the outstanding principal balance of the Term Loan, (b) if the prepayment occurs after such one (1) year anniversary and prior to the two (2) year anniversary of the Closing Date, 3.00% of the outstanding principal balance of the Term Loan, (c) if the prepayment occurs after such second anniversary of the Closing Date and prior to the three (3) year anniversary of the Closing Date 1.00% of the outstanding principal balance of the Term Loan and (d) thereafter, no prepayment fee. Subject to certain customary exceptions, obligations under the Credit Agreement are guaranteed by the Company and all of the Company’s current and future wholly-owned material domestic subsidiaries and are secured by a first-priority security interest in substantially all of the assets of the Company and its subsidiary guarantors. The Credit Agreement contains customary representations and affirmative and negative covenants. Among other things, these covenants restrict the Company’s and certain of its subsidiaries’ ability to incur indebtedness, make certain investments, pay dividends or repurchase stock, and make dispositions and acquisitions. In addition, the Credit Agreement requires that the Company and its wholly-owned subsidiaries maintain certain total net leverage ratios as set forth in the Credit Agreement, an average liquidity amount that shall not be less than $10 million, maximum capital expenditures per year as set forth in the Credit Agreement and fixed charge coverage ratios as set forth in the Credit Agreement. The Credit Agreement also contains customary events of default. If an event of default occurs, the Administrative Agent and lenders are entitled to take various actions, including the acceleration of amounts due under the Credit Agreement, termination of commitments thereunder and all other actions permitted to be taken by a secured creditor.

Franchise Growth Acceleration I

Franchise Growth Acceleration Initiative	9 Months Ended
	Sep. 24, 2023
Other Industries [Abstract]
Franchise Growth Acceleration Initiative	Franchise Growth Acceleration Initiative The following is a summary of the refranchising activities recorded as a result of the Franchise Growth Acceleration Initiative during the quarter and year ended September 24, 2023 and September 25, 2022: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Number of shops sold to franchisees 12 — 20 — Proceeds from sale of company-operated shops $ 1,269 $ — $ 1,369 $ — Net assets sold (1,283) — (1,796) — Goodwill related to the company-operated shops sold to franchisee (79) — (100) — Loss on sale of company-operated shops, net (93) — (527) — Adjustment to recognize held-for-sale assets at fair value — — (503) — Other expenses (a) (17) — (43) — Loss on Franchise Growth Acceleration Initiative activities $ 110 $ — $ 1,073 $ — ______________________________ (a) These costs primarily include professional service fees and travel expenses incurred to execute the refranchise transaction.

Capital Stock

Capital Stock	9 Months Ended
	Sep. 24, 2023
Equity [Abstract]
Capital Stock	Capital Stock On May 8, 2018, we announced that our Board of Directors authorized a stock repurchase program for up to $65.0 million of our outstanding common stock. The program permits us, from time to time, to purchase shares in the open market (including in pre-arranged stock trading plans in accordance with the guidelines specified in Rule 10b5-1 under the Securities and Exchange Act of 1934, as amended) or in privately negotiated transactions. The number of common shares actually repurchased, and the timing and price of repurchases, will depend upon market conditions, SEC requirements and other factors. Purchases may be started or stopped at any time without prior notice depending on market conditions and other factors. For the quarter ended September 24, 2023, we did not repurchase any shares of our common stock under the stock repurchase program. We do not have plans to repurchase any common stock under our stock repurchase program at this time. On February 9, 2021, we closed on a Securities Purchase Agreement (the "SPA") for the sale by us of 3,249,668 shares of our common stock at a par value of $0.01 per share and the issuance of warrants to purchase 1,299,861 shares of common stock at an exercise price of $5.45 per warrant for gross proceeds of $16.0 million, before deducting placement agent fees and offering expenses of approximately $1.0 million. The warrants are currently exercisable until August 12, 2026. The proceeds received from the SPA were allocated between shares and warrants based on their relative fair values at closing. The warrants were valued utilizing the Black-Scholes method. During the quarter ended September 24, 2023, no warrants were exercised. For the year to date ended September 24, 2023, 176,272 warrants were exercised at the exercise price of $5.45 per warrant. As of September 24, 2023, we had 1,123,589 warrants outstanding that are exercisable through August 12, 2026. On November 3, 2021, we entered into a certain Equity Sales Agreement (the "Sales Agreement") with William Blair & Company, L.L.C., as agent ("William Blair") pursuant to which we may sell shares of our common stock having an aggregate offering price of up to $40.0 million (the "Shares"), from time to time, in our sole discretion, through an "at the market" equity offering program under which William Blair will act as sales agent. As of September 24, 2023, we have not sold any shares under the Sales Agreement.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 24, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock options We have awarded stock options to certain employees including our senior leadership team. The number of options and exercise price of each option is determined by an independent committee designated by our Board of Directors. The options granted are generally exercisable over a 10-year period from the date of the grant. Outstanding options expire on various dates through the year 2028. The range of exercise prices for the outstanding options as of September 24, 2023 is $10.59 and $20.53 per option, and the options generally vest in one-fourth and one-fifth increments over four A summary of stock option activity for the year to date ended September 24, 2023 is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 25, 2022 473 $ 12.22 $ — 1.46 Granted — — Exercised — — Canceled (345) 11.64 Outstanding—September 24, 2023 128 $ 13.78 $ — 1.62 Exercisable—September 24, 2023 128 13.78 $ — 1.62 Stock-based compensation related to stock options is measured at the grant date based on the calculated fair value of the award, and is recognized as 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. We did not recognize stock-based compensation expense related to stock options for the quarter or year to date ended September 24, 2023 or the quarter ended September 25, 2022. For the year to date ended September 25, 2022, we recognized stock-based compensation expense related to stock options of less than $0.1 million. As of September 24, 2023, we did not have unrecognized stock-based compensation expense related to stock options. We record stock-based compensation expense within general and administrative expenses in the condensed consolidated statements of operations. Restricted stock units We award restricted stock units ("RSUs") to certain employees and certain non-employee members of our Board of Directors. Grants of RSUs to our Board of Directors fully vest on the first anniversary of the grant date, or upon termination from the Board of Directors for any reason other than for cause, a pro rata portion of the shares vest on the termination date. The employee grants generally vest in one-third increments over a three-year period. A summary of RSU activity for the year to date ended September 24, 2023 is as follows: RSUs Number of RSUs (Thousands) Weighted Average Fair Value per Share Non-vested as of December 25, 2022 908 $ 4.25 Granted 599 7.42 Vested (610) 5.06 Canceled (69) 6.45 Non-vested as of September 24, 2023 828 $ 7.12 For the quarter and year to date ended September 24, 2023, we recognized stock-based compensation expense related to RSUs of $0.8 million and $2.4 million, respectively. For the quarter and year to date ended September 25, 2022, we recognized stock-based compensation expense related to RSUs of $0.8 million and $2.1 million, respectively. As of September 24, 2023, unrecognized stock-based compensation expense for RSUs was $5.6 million, which will be recognized through fiscal year 2024. Performance stock units We award performance share units ("PSUs") to certain of our employees. We have PSUs that have certain vesting conditions based upon our stock price and relative stock performance. We also have PSUs that are based solely on stock price. Because these PSUs are subject to service and market vesting conditions, we determine the fair market value of each grant using a Monte Carlo simulation model. Participants are entitled to receive a specified number of shares of our common stock contingent on achievement of a stock return on our common stock. For the quarter and year to date ended September 24, 2023, we recognized stock-based compensation expense for PSUs with market vesting conditions of $0.4 million and $1.0 million, respectively. For the quarter and year to date ended September 25, 2022, we recognized stock-based compensation expense for PSUs with market vesting conditions of $0.2 million and $0.4 million, respectively. A summary of activity for PSUs with market vesting conditions for the year to date ended September 24, 2023 is as follows: PSUs Number of PSUs (Thousands) Weighted Average Fair Value per Share Non-vested as of December 25, 2022 275 9.34 Granted 297 9.79 Vested (18) 4.30 Canceled (40) 6.24 Non-vested as of September 24, 2023 514 $9.59

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 24, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to legal proceedings, claims and liabilities, such as employment-related claims and slip and fall cases, which arise in the ordinary course of business and are generally covered by insurance. We accrue for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, our estimates of the outcomes of these matters and our experience in contesting, litigating and settling other similar matters. In the opinion of management, the amount of ultimate liability with respect to those actions should not have a material adverse impact on our financial position or results of operations and cash flows. Many of the food products we purchase are subject to changes in the price and availability of food commodities, including, among other things, beef, poultry, grains, dairy and produce. We work with our suppliers and use a mix of forward pricing protocols for certain items including agreements with our supplier on fixed prices for deliveries at a time in the future and agreements on a fixed price with our suppliers for the duration of those protocols. We also utilize formula pricing protocols under which the prices we pay are based on a specified formula related to the prices of the goods, such as spot prices. Our use of any forward pricing arrangements varies substantially from time to time and these arrangements tend to cover relatively short periods (i.e., typically twelve months or less). Such contracts are used in normal purchases of our food products and not for speculative purposes, and as such are not required to be evaluated as derivative instruments.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 24, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn October 30, 2023, we completed a multi-unit development agreement which included the refranchising of four shops in the greater Columbus, Ohio region. We received $3.3 million in cash proceeds for the sale of these shop assets, and we expect to recognize a gain on the sale the fourth quarter of 2023 of between $2.0 and $3.0 million.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Pay vs Performance Disclosure
Net income attributable to Potbelly Corporation	$ 1,495	$ 9,029	$ 2,383	$ 1,690

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 24, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Other Matters

Organization and Other Matters (Policies)	9 Months Ended
	Sep. 24, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	BusinessPotbelly Corporation, a Delaware corporation, together with its subsidiaries (collectively referred to as the "Company," "Potbelly," "we," "us" or "our"), owns and operates 361 company-operated shops in the United States as of September 24, 2023. Additionally, Potbelly franchisees operate 69 shops domestically.
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 and its subsidiaries and the notes thereto included in our Annual Report on Form 10-K for the year ended December 25, 2022. The unaudited condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the SEC rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported within. . The condensed consolidated statements of operations for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. We do not have any components of other comprehensive income recorded within our consolidated financial statements and therefore, do not separately present a statement of comprehensive income in our condensed consolidated financial statements.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Potbelly; its wholly-owned subsidiary, Potbelly Illinois, Inc. (“PII”); PII’s wholly-owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC (“PSW”); seven of PSW’s wholly-owned subsidiaries and PSW’s six joint ventures, collectively, the “Company.” All intercompany balances and transactions have been eliminated in consolidation. For our six consolidated joint ventures, "non-controlling interest" represents the non-controlling partner’s share of the assets, liabilities and operations related to the joint venture investments. Potbelly has ownership interests ranging from 51-80% in these consolidated joint ventures.
Fiscal Year	Fiscal Year We use a 52/53-week fiscal year that ends on the last Sunday of the calendar period. Approximately every five or six years a 53rd week is added. Fiscal year 2023 consists of 53 weeks and fiscal year 2022 consisted of 52 weeks. The fiscal quarters ended September 24, 2023 and September 25, 2022 each consisted of 13 weeks. The year to date periods ended September 24, 2023 and September 25, 2022 each consisted of 39 weeks.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant estimates include amounts for long-lived assets and income taxes. Actual results could differ from those estimates.
Franchise Growth Acceleration Initiative	Franchise Growth Acceleration Initiative On March 2, 2022, we announced our Franchise Growth Acceleration Initiative, which included a plan to grow our franchise units domestically through multi-unit shop development area agreements, which may include refranchising certain company-operated shops. Deals for refranchised shops typically include cash consideration for the sale of the current shops as well as development agreement fees for commitments to develop new shops to fully penetrate existing markets. On an ongoing basis, we collect additional cash consideration for royalties and lease payments.
Restricted Cash	Restricted CashAs of September 24, 2023, we had restricted cash related to funds held in a money market account as collateral for letters of credit to certain lease agreements.
Potbelly Brand Fund	Potbelly Brand Fund We maintain the Potbelly Brand Fund (the "Brand Fund") for the purpose of collecting and administering funds to be used for advertising, customer research, marketing technology, agencies, and other activities that promote the Potbelly brand in order to deliver sales at our shops. Company-operated and franchised shops both contribute to the Brand Fund based on a percentage of sales. We manage these advertising and marketing expenses through the Brand Fund using the funds contributed by our shops. These funds are managed separately from our general operating expenses, but we are not obligated to maintain the funds in separate accounts or entities. We may spend more or less in any fiscal period than the amounts contributed to the Brand Fund, and we may choose to roll over any unused contributions to the following fiscal period or return them to shops. Brand Fund contributions made by company-operated shops are eliminated from the consolidated financial statements. Franchisee contributions are included within franchise royalties and fees in the condensed consolidated statements of operations. Expenses incurred by the Brand Fund are recorded to company-operated and franchised shops based on a percentage of sales. Company-operated Brand Fund expense is included within other operating expenses in our condensed consolidated statements of operations. Franchisee Brand Fund expense is presented within franchise support, rent and marketing expenses in our condensed consolidated statements of operations.
Revenue	We primarily earn revenue at a point in time for sandwich shop sales, which can occur in person at a shop, through our online or app platform, or through a third-party platform. Sales taxes collected from customers are excluded from revenues and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate taxing authorities. We have other revenue generating activities where revenue is generally recognized over time, as outlined below. Franchise Revenue, including Rent Income We earn an initial franchise fee, a franchise development agreement fee and ongoing fees for royalties and Brand Fund contributions under our franchise agreements. Initial franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. As such, these franchise fees are recognized over the contractual term of the franchise agreement. We record a contract liability for the unearned portion of the initial franchise fees. Franchise development agreement fees represent the exclusivity rights for a geographical area paid by a third party to develop Potbelly shops for a certain period of time. Franchise development agreement fee payments received by us are recorded in the consolidated balance sheets as accrued expenses or other long-term liabilities, and amortized over the term of the franchise agreement once the shops are opened. Royalties and Brand Fund contributions are based on a percentage of sales and are recorded as revenue as they are earned and become receivable from the franchisee. We also earn rent income from properties leased by Potbelly and subleased to franchisees. Rent income is recognized on a straight-line basis over the operating lease terms. See Note 6 for further detail. Gift Card Redemptions / Breakage Revenue Potbelly sells gift cards to customers, records the sale as a contract liability and recognizes the associated revenue as the gift card is redeemed. A portion of these gift cards are not redeemed by the customer ("breakage"), which is recognized as revenue as a percentage of customers gift card redemptions. The expected breakage amount recognized is determined by a historical data analysis on gift card redemption patterns. We recognize gift card breakage income within sandwich shop sales, net in the condensed consolidated statements of operations. We offer a customer loyalty program for customers using the Potbelly Perks application at the point of sale. The customer will typically earn 10 points for every dollar spent, and the customer will earn a free entrée after earning 1,000 points. Once a customer earns a free entrée, that entrée reward will expire after 30 days. We defer revenue associated with the estimated selling price of points earned by Potbelly Perks members towards free entrées as each point is earned, and a corresponding deferred revenue liability is established in accrued expenses. The deferral is based on the estimated value of the unredeemed points and free entrées. The estimated value and the estimated redemption rates are based on a historical data analysis of loyalty reward redemptions. Estimated breakage is recognized in net shop sandwich sales in the consolidated statement of operations. When points are redeemed, we recognize revenue for the redeemed product and reduce accrued expenses. Contract Liabilities We record current and noncurrent contract liabilities in accrued expenses and other long-term liabilities, respectively, for initial franchise fees, gift cards, and loyalty programs. We have no other contract liabilities or contract assets recorded.

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements (Tables)	9 Months Ended
	Sep. 24, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Cash and Cash Equivalents	The reconciliation of cash and cash equivalents and restricted cash presented in the condensed consolidated balance sheets to the total amount shown in our condensed consolidated statements of cash flows is as follows: September 24, December 25, Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 30,938 $ 15,619 Restricted cash, noncurrent 749 — Total cash, cash equivalents and restricted cash shown on statement of cash flows $ 31,688 $ 15,619

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 24, 2023
Revenue from Contract with Customer [Abstract]
Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers	The opening and closing balances of our current and noncurrent contract liabilities from contracts with customers were as follows: Current Contract Liability Noncurrent Contract Liability (Thousands) (Thousands) Beginning balance as of December 25, 2022 $ 7,008 $ 1,677 Ending balance as of September 24, 2023 6,279 3,502 Increase (decrease) in contract liability $ (729) $ 1,825
Summary of Expected Revenue Recognition Related to Contract Liabilities	We expect to recognize revenue related to contract liabilities as follows (in thousands), which may vary based upon franchise activity as well as gift card redemption patterns: Years Ending Amount 2023 $ 2,931 2024 2,772 2025 318 2026 289 2027 256 Thereafter 3,272 Total revenue recognized $ 9,838

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 24, 2023
Earnings Per Share [Abstract]
Summary of Loss Per Share Calculation	The following table summarizes the earnings per share calculation: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Net income attributable to Potbelly Corporation $ 1,495 $ 9,029 $ 2,383 $ 1,690 Weighted average common stock outstanding-basic 29,324 28,726 29,143 28,563 Plus: Effect of potentially dilutive stock-based compensation awards 295 141 392 329 Plus: Effect of potential warrant exercise 409 — 380 55 Weighted average common shares outstanding-diluted 30,028 28,867 29,915 28,947 Income per share available to common stockholders-basic $ 0.05 $ 0.31 $ 0.08 $ 0.06 Income per share available to common stockholders-diluted $ 0.05 $ 0.31 $ 0.08 $ 0.06 Potentially dilutive shares that are considered anti-dilutive: Shares 437 2,620 367 647

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 24, 2023
Leases [Abstract]
Schedule of Weighted Average Lease Terms and Discount Rates	The weighted average operating lease term and discount rate were as follows: September 24, September 25, Weighted average remaining lease term (years) 6.27 6.77 Weighted average discount rate 8.74 % 8.17 %
Components of Lease Cost	The components of lease cost were as follows (in thousands), which are included in occupancy, general and administrative and franchise support, rent and marketing expense: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating lease cost $ 10,231 10,451 $ 30,406 31,041 Variable lease cost 3,825 2,797 11,188 9,649 Short-term lease cost 77 46 234 259 Total lease cost $ 14,133 13,294 $ 41,828 40,949 Supplemental disclosures of cash flow information related to leases were as follows (in thousands): For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Operating cash flows rent paid for operating lease liabilities $ 10,479 10,254 $ 31,685 31,179 Operating right-of-use assets obtained in exchange for new operating lease liabilities 4,745 7,361 8,997 17,537 Reduction in operating right-of-use assets due to lease terminations and modifications $ 1,392 84 $ 2,251 1,347
Maturities of Lease Liabilities	Maturities of lease liabilities were as follows (in thousands) as of September 24, 2023: Operating Leases Remainder of 2023 $ 10,448 2024 41,928 2025 39,356 2026 35,562 2027 29,730 2028 23,062 Thereafter 49,296 Total lease payments 229,382 Less: imputed interest (55,433) Present value of lease liabilities $ 173,949
Components of Lease Income	The components of lease income were as follows: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Number of subleases 20 — 20 — Operating lease income $ 559 $ — $ 1,159 $ — Variable lease income 266 — 304 — Franchise rent income $ 825 $ — $ 1,463 $ —

Debt and Credit Facilities (Tab

Debt and Credit Facilities (Tables)	9 Months Ended
	Sep. 24, 2023
Debt Disclosure [Abstract]
Component of Long-term Debt	The components of long-term debt were as follows (in thousands): September 24, December 25, Revolving credit facility $ — $ 8,550 Term loan credit facility 24,062 — Unamortized debt issuance costs (1,894) — Less: current portion of long-term debt (1,250) — Total long-term debt $ 20,918 $ 8,550

Franchise Growth Acceleration_2

Franchise Growth Acceleration Initiative (Tables)	9 Months Ended
	Sep. 24, 2023
Other Industries [Abstract]
Schedule of Franchise Growth Acceleration Initiative	The following is a summary of the refranchising activities recorded as a result of the Franchise Growth Acceleration Initiative during the quarter and year ended September 24, 2023 and September 25, 2022: For the Quarter Ended For the Year to Date Ended September 24, September 25, September 24, September 25, Number of shops sold to franchisees 12 — 20 — Proceeds from sale of company-operated shops $ 1,269 $ — $ 1,369 $ — Net assets sold (1,283) — (1,796) — Goodwill related to the company-operated shops sold to franchisee (79) — (100) — Loss on sale of company-operated shops, net (93) — (527) — Adjustment to recognize held-for-sale assets at fair value — — (503) — Other expenses (a) (17) — (43) — Loss on Franchise Growth Acceleration Initiative activities $ 110 $ — $ 1,073 $ — ______________________________ (a) These costs primarily include professional service fees and travel expenses incurred to execute the refranchise transaction.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 24, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	A summary of stock option activity for the year to date ended September 24, 2023 is as follows: Options Shares (Thousands) Weighted Average Exercise Price Aggregate Intrinsic Value (Thousands) Weighted Average Remaining Term (Years) Outstanding—December 25, 2022 473 $ 12.22 $ — 1.46 Granted — — Exercised — — Canceled (345) 11.64 Outstanding—September 24, 2023 128 $ 13.78 $ — 1.62 Exercisable—September 24, 2023 128 13.78 $ — 1.62
Summary of RSU Activity	A summary of RSU activity for the year to date ended September 24, 2023 is as follows: RSUs Number of RSUs (Thousands) Weighted Average Fair Value per Share Non-vested as of December 25, 2022 908 $ 4.25 Granted 599 7.42 Vested (610) 5.06 Canceled (69) 6.45 Non-vested as of September 24, 2023 828 $ 7.12
Summary of PSU Activity	A summary of activity for PSUs with market vesting conditions for the year to date ended September 24, 2023 is as follows: PSUs Number of PSUs (Thousands) Weighted Average Fair Value per Share Non-vested as of December 25, 2022 275 9.34 Granted 297 9.79 Vested (18) 4.30 Canceled (40) 6.24 Non-vested as of September 24, 2023 514 $9.59

Organization and Other Matter_2

Organization and Other Matters - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 24, 2023 jointVenture shop store	Sep. 25, 2022 store	Sep. 24, 2023 jointVenture store shop subsidiary	Sep. 25, 2022 store
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Number of shops Potbelly Corporation owns or operates | shop	361		361
Number of shops franchisees operate | shop	69		69
Number of wholly owned subsidiaries | subsidiary			7
Number of joint ventures | jointVenture	6		6
Number of shops sold to franchisees | store	12	0	20	0
Number of additional shops to be developed | store			28
Minimum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest rate			51%
Maximum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest rate			80%

Organization and Other Matter_3

Organization and Other Matters - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022	Sep. 25, 2022	Dec. 26, 2021
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$ 30,938	$ 15,619
Restricted cash, noncurrent	749	0
Total cash, cash equivalents and restricted cash shown on statement of cash flows	$ 31,688	$ 15,619	$ 9,506	$ 14,353

Revenue - Additional Informatio

Revenue - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023 USD ($)	Sep. 25, 2022 USD ($)	Sep. 24, 2023 USD ($) point	Sep. 25, 2022 USD ($)
Disaggregation Of Revenue [Line Items]
Amount of revenue recognized	$ 120,768	$ 117,649	$ 365,660	$ 331,823
Gift card breakage income			$ 600	400
Loyalty points earned per dollar spent | point			10
Cost of loyalty reward (in points) | point			1,000
Expiration period of loyalty reward			30 days
Aggregate value of remaining performance obligation on outstanding contracts	9,838		$ 9,838
Revenue recognized related to prior periods	$ 400	$ 400	2,500	2,200
Point in time sales
Disaggregation Of Revenue [Line Items]
Amount of revenue recognized			363,400	330,600
Over time sales
Disaggregation Of Revenue [Line Items]
Amount of revenue recognized			$ 2,200	$ 1,200

Revenue - Summary of Current an

Revenue - Summary of Current and Noncurrent Contract Liabilities from Contracts with Customers (Detail) $ in Thousands	9 Months Ended
	Sep. 24, 2023 USD ($)
Current Contract Liability
Beginning balance	$ 7,008
Ending balance	6,279
Increase (decrease) in contract liability	(729)
Noncurrent Contract Liability
Beginning balance	1,677
Ending balance	3,502
Increase (decrease) in contract liability	$ 1,825

Revenue - Summary of Expected R

Revenue - Summary of Expected Revenue Recognition Related to Contract Liabilities (Detail) $ in Thousands	Sep. 24, 2023 USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 9,838
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-25
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 2,931
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-12-31
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 2,772
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-12-31
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 318
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-12-31
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 289
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-12-31
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 256
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-12-31
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue, remaining performance obligations	$ 3,272
Revenue, remaining performance obligation, expected timing of satisfaction, period

Fair Value Measurement (Detail)

Fair Value Measurement (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 24, 2023	Sep. 24, 2023
Fair Value Disclosures [Abstract]
Impairment charge	$ 200	$ 900

Earnings (Loss) Per Share - Sum

Earnings (Loss) Per Share - Summary of Loss Per Share Calculation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Earnings Per Share [Abstract]
Net income attributable to Potbelly Corporation	$ 1,495	$ 9,029	$ 2,383	$ 1,690
Weighted average common shares outstanding-basic (in shares)	29,324	28,726	29,143	28,563
Plus: Effect of potentially dilutive stock-based compensation awards	295	141	392	329
Plus: Effect of potential warrant exercise	409	0	380	55
Weighted average common shares outstanding-diluted (in shares)	30,028	28,867	29,915	28,947
Income (loss) per share available to common stockholders-basic (in USD per share)	$ 0.05	$ 0.31	$ 0.08	$ 0.06
Income (loss) per share available to common stockholders-diluted (in USD per share)	$ 0.05	$ 0.31	$ 0.08	$ 0.06
Potentially dilutive shares that are considered anti-dilutive (in shares)	437	2,620	367	647

Income Taxes - (Detail)

Income Taxes - (Detail) $ in Millions	Mar. 31, 2019 USD ($)
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 13.6

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Operating leases, terms	10 years		10 years
Renewal term	5 years		5 years
Additional operating leases payments related to shops not yet open, amount	$ 0		$ 0
Franchise rent income	825,000	$ 0	1,463,000	$ 0
Franchise lease expense	$ 900,000		$ 1,600,000

Leases - Operating Lease Term a

Leases - Operating Lease Term and Discount Rate (Detail)	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Weighted average remaining lease term (years)	6 years 3 months 7 days	6 years 9 months 7 days
Weighted average discount rate	8.74%	8.17%

Leases - Components of Lease Co

Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Operating lease cost	$ 10,231	$ 10,451	$ 30,406	$ 31,041
Variable lease cost	3,825	2,797	11,188	9,649
Short-term lease cost	77	46	234	259
Total lease cost	$ 14,133	$ 13,294	$ 41,828	$ 40,949

Leases - Supplemental Disclosur

Leases - Supplemental Disclosures of Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Sep. 24, 2023	Sep. 25, 2022
Leases [Abstract]
Operating cash flows rent paid for operating lease liabilities	$ 10,479	$ 10,254	$ 31,685	$ 31,179
Operating right-of-use assets obtained in exchange for new operating lease liabilities	4,745	7,361	8,997	17,537
Reduction in operating right-of-use assets due to lease terminations and modifications	$ 1,392	$ 84	$ 2,251	$ 1,347

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Detail) $ in Thousands	Sep. 24, 2023 USD ($)
Operating Leases
Remainder of 2023	$ 10,448
2024	41,928
2025	39,356
2026	35,562
2027	29,730
2028	23,062
Thereafter	49,296
Total lease payments	229,382
Less: imputed interest	(55,433)
Present value of lease liabilities	$ 173,949

Leases - Lessor Operating Lease

Leases - Lessor Operating Leases (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023 USD ($) store	Sep. 25, 2022 USD ($) store	Sep. 24, 2023 USD ($) store	Sep. 25, 2022 USD ($) store
Leases [Abstract]
Number of subleases | store	20	0	20	0
Operating lease income	$ 559	$ 0	$ 1,159	$ 0
Variable lease income	266	0	304	0
Franchise rent income	$ 825	$ 0	$ 1,463	$ 0

Debt and Credit Facilities - Co

Debt and Credit Facilities - Component of Long-term Debt (Detail) - USD ($) $ in Thousands	Sep. 24, 2023	Dec. 25, 2022
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (1,894)	$ 0
Less: current portion of long-term debt	(1,250)	0
Total long-term debt	20,918	8,550
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt, gross	0	8,550
Term loan credit facility
Debt Instrument [Line Items]
Long-term debt, gross	24,062	$ 0
Total long-term debt	$ 24,100

Debt and Credit Facilities - Ad

Debt and Credit Facilities - Additional Information (Detail) $ in Thousands		3 Months Ended		9 Months Ended
	Feb. 07, 2023 USD ($)	Sep. 24, 2023 USD ($) Rate	Sep. 25, 2022 USD ($)	Sep. 24, 2023 USD ($) Rate	Sep. 25, 2022 USD ($)	Dec. 25, 2022 USD ($)
Debt Instrument [Line Items]
(Gain)/loss on extinguishment of debt		$ 0	$ 10,191	$ (239)	$ 10,191
Effective interest rate | Rate		14.94%		14.94%
Amortization of debt issuance costs		$ 100		$ 300
Total long-term debt		20,918		20,918		$ 8,550
Term loan credit facility
Debt Instrument [Line Items]
Credit facility agreement, maximum principal amount	$ 25,000
Principal payments as a percentage of initial principal of term loan	0.0125
Debt covenant, minimum average liquidity	$ 10,000
Debt issuance costs	$ 2,200
Total long-term debt		$ 24,100		$ 24,100
Term loan credit facility | Prepayment Percentage One
Debt Instrument [Line Items]
Prepayment as a percentage of principal amount outstanding	0.0300
Term loan credit facility | Prepayment Percentage Two
Debt Instrument [Line Items]
Prepayment as a percentage of principal amount outstanding	0.0300
Term loan credit facility | Prepayment Percentage Three
Debt Instrument [Line Items]
Prepayment as a percentage of principal amount outstanding	0.0100
Term loan credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Credit facility agreement, interest rate	9.25%
Term loan credit facility | Base Rate
Debt Instrument [Line Items]
Credit facility agreement, interest rate	8.25%
Revolving Credit Facility
Debt Instrument [Line Items]
(Gain)/loss on extinguishment of debt	$ 200

Franchise Growth Acceleration_3

Franchise Growth Acceleration Initiative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 24, 2023 USD ($) store	Sep. 25, 2022 USD ($) store	Sep. 24, 2023 USD ($) store	Sep. 25, 2022 USD ($) store
Other Industries [Abstract]
Number of shops sold to franchisees | store	12	0	20	0
Proceeds from sale of company-operated shops	$ 1,269	$ 0	$ 1,369	$ 0
Net assets sold	(1,283)	0	(1,796)	0
Goodwill related to the company-operated shops sold to franchisee	(79)	0	(100)	0
Loss on sale of company-operated shops, net	93	0	527	0
Adjustment to recognize held-for-sale assets at fair value	0	0	(503)	0
Other expenses	(17)	0	(43)	0
Loss on Franchise Growth Acceleration Initiative activities	$ 110	$ 0	$ 1,073	$ 0

Capital Stock (Detail)

Capital Stock (Detail) - USD ($)			3 Months Ended			9 Months Ended
	Nov. 03, 2021	Feb. 09, 2021	Sep. 24, 2023	Jun. 25, 2023	Mar. 26, 2023	Sep. 24, 2023	Dec. 25, 2022	May 08, 2018
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, authorized amount								$ 65,000,000
Common stock, par value (in USD per share)			$ 0.01			$ 0.01	$ 0.01
Warrants outstanding			1,123,589			1,123,589
Proceeds from exercise of warrants			$ 0	$ 96,000	$ 865,000
Warrants
Equity Class Of Treasury Stock [Line Items]
Placement agent fees and offering expenses		$ 1,000,000
Proceeds from exercise of warrants			$ 0	$ (34,000)	$ (313,000)
Common Stock
Equity Class Of Treasury Stock [Line Items]
Issuance of common shares and warrants, net of fees (in shares)			0	18,000	159,000
Proceeds from exercise of warrants					$ 1,000
Securities purchase agreement
Equity Class Of Treasury Stock [Line Items]
Issuance of common shares and warrants, net of fees (in shares)		3,249,668
Common stock, par value (in USD per share)		$ 0.01
Securities purchase agreement | Warrants
Equity Class Of Treasury Stock [Line Items]
Issuance of common shares and warrants, net of fees (in shares)		1,299,861
Exercise price of warrants (in USD per share)		$ 5.45
Proceeds from securities purchase agreement		$ 16,000,000
Securities purchase agreement | Common Stock
Equity Class Of Treasury Stock [Line Items]
Issuance of common shares and warrants, net of fees (in shares)			0			176,272
William Blair
Equity Class Of Treasury Stock [Line Items]
Proceeds from exercise of warrants	$ 40,000,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Jun. 26, 2022	Sep. 24, 2023	Sep. 25, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized stock-based compensation expense (less than)				$ 3,408,000	$ 2,446,000
Common share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options outstanding, lower limit (in USD per share)				$ 10.59
Exercise price of options outstanding, higher limit (in USD per share)				$ 20.53
Recognized stock-based compensation expense (less than)	$ 0	$ 0		$ 0	100,000
Common share options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period (in years)				4 years
Common share options | Minimum | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Common share options | Minimum | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Common share options | Minimum | Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Common share options | Minimum | Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				25%
Common share options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable period from the date of grant				10 years
Options vesting period (in years)				5 years
Common share options | Maximum | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				20%
Common share options | Maximum | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				20%
Common share options | Maximum | Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				20%
Common share options | Maximum | Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				20%
Common share options | Maximum | Tranche Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				20%
Restricted stock units (RSUs) | Non-employee board of directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period (in years)			3 years
Recognized stock-based compensation expense (less than)	800,000	800,000		$ 2,400,000	2,100,000
Unrecognized stock compensation expense	5,600,000			$ 5,600,000
Restricted stock units (RSUs) | Non-employee board of directors | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33%
Restricted stock units (RSUs) | Non-employee board of directors | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33%
Restricted stock units (RSUs) | Non-employee board of directors | Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				33%
Performance stock units | Market vesting conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized stock-based compensation expense (less than)	$ 400,000	$ 200,000		$ 1,000,000	$ 400,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 24, 2023	Sep. 25, 2022	Dec. 25, 2022
Shares (Thousands)
Beginning balance (in shares)	473
Granted (in shares)	0
Exercised (in shares)	0
Canceled (in shares)	(345)
Ending balance (in shares)	128
Exercisable (in shares)	128
Weighted Average Exercise Price
Outstanding at beginning balance (in USD per share)	$ 12.22
Granted (in USD per share)	0
Exercised (in USD per share)	0
Canceled (in USD per share)	11.64
Outstanding at ending balance (in USD per share)	13.78
Exercisable (in USD per share)	$ 13.78
Options outstanding aggregate intrinsic value	$ 0		$ 0
Options exercisable aggregate intrinsic value	$ 0
Weighted Average Remaining Term (Years)
Options outstanding	1 year 7 months 13 days	1 year 5 months 15 days
Options exercisable	1 year 7 months 13 days

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity (Detail) - Restricted stock units (RSUs) shares in Thousands	9 Months Ended
	Sep. 24, 2023 $ / shares shares
Number of RSUs (Thousands)
Non-vested beginning balance (in shares) | shares	908
Granted (in shares) | shares	599
Vested (in shares) | shares	(610)
Canceled (in shares) | shares	(69)
Non-vested ending balance (in shares) | shares	828
Weighted Average Fair Value per Share
Weighted average fair value beginning balance (in USD per share) | $ / shares	$ 4.25
Granted (in USD per share) | $ / shares	7.42
Vested (in USD per share) | $ / shares	5.06
Canceled (in USD per share) | $ / shares	6.45
Weighted average fair value ending balance (in USD per share) | $ / shares	$ 7.12

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of PSU Activity (Detail) - Performance stock units shares in Thousands	9 Months Ended
	Sep. 24, 2023 $ / shares shares
Number of RSUs (Thousands)
Non-vested beginning balance (in shares) | shares	275
Granted (in shares) | shares	297
Vested (in shares) | shares	(18)
Canceled (in shares) | shares	(40)
Non-vested ending balance (in shares) | shares	514
Weighted Average Fair Value per Share
Weighted average fair value beginning balance (in USD per share) | $ / shares	$ 9.34
Granted (in USD per share) | $ / shares	9.79
Vested (in USD per share) | $ / shares	4.30
Canceled (in USD per share) | $ / shares	6.24
Weighted average fair value ending balance (in USD per share) | $ / shares	$ 9.59

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands		3 Months Ended			9 Months Ended
	Oct. 30, 2023 USD ($) store	Dec. 31, 2023 USD ($)	Sep. 24, 2023 USD ($)	Sep. 25, 2022 USD ($)	Sep. 24, 2023 USD ($)	Sep. 25, 2022 USD ($)
Subsequent Event [Line Items]
Proceeds from sale of shop assets			$ 1,269	$ 0	$ 1,369	$ 0
Expected gain on sale of shops			$ (93)	$ 0	$ (527)	$ 0
Minimum | Forecast
Subsequent Event [Line Items]
Expected gain on sale of shops		$ 2,000
Maximum | Forecast
Subsequent Event [Line Items]
Expected gain on sale of shops		$ 3,000
Subsequent Event
Subsequent Event [Line Items]
Number of shops refranchised | store	4
Proceeds from sale of shop assets	$ 3,300