PBPB - Earnings call 4 2023 | Potbelly Corporation

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Operator

Good afternoon, and welcome to Potbelly Corporation's Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] And the lines will be opened for your questions following the prepared remarks. On today's call, we have Bob Wright, President and Chief Executive Officer; Steve Cirulis, Senior Vice President and Chief Financial Officer; and Adiya Dixon, Senior Vice President, Chief Legal Officer and Secretary of Potbelly Corporation.At this time, I'll turn the call over to Adiya Dixon. Please go ahead.

Adiya Dixon

welcome call. fourth and year and everyone, earnings XXXX afternoon, to quarter our full Good everyone have now, investor By should presentation. and earnings accompanying release access to our of on If or I remarks, the future of will remind made performance Investor be contain they comments to we the found future certain this not, Relations our financial can need section company. events on our everyone formal forward-looking website.Before begin regarding the call statements future Reform other should outlook of for XXXX. XXXX forward-looking Any within be such statements, statements any considered including our the or Private Act periods, the meaning Securities Litigation of forward-looking relied of upon guarantees future of are management's be representing they as views should These as date. statements any performance not subsequent nor

events those and materially or results Forward-looking involve statements could presented of risks to and from a uncertainties. number significant risks uncertainties due differ and

conform these included U.S. in and over are appendix or Potbelly's both that our which be now, sec.gov.During tab Additional afternoon, available and found this Bob Exchange non-GAAP available do that the of directly and turn release our to Principles issued materially of detailed in items are from CEO, Wright. our not business GAAP the President I'll to Commission, actual will can which the presentation call the in factors information the Securities at of website.And to are Factors with investor some be risks concerning measures the filings Generally statements results these the of measures call, Reconciliations could cause be differ most will and information a and there GAAP. also the Investors forward-looking discussion given today regarding that Accounting Accepted comparable heading to their the to press under other Risk

Robert Wright

Good team afternoon, for joining Adiya. you in and of our XXXX. accomplished call what today. very I'm thank proud Thank our you,

our while brand same-store customers profitability franchise sales the ended our open while refranchising of XX.X% proceeds coming driven progress initiative shop to XXXX, free our generation XXX to acceleration committed with strengthened target by system-wide We focus improving in franchisees margins, growth through efforts. we sales approximately basis commitments what Our with by XX% matters We These simultaneously year. the and with and unit XXX support the growth net strategic the growing achieving a development significant increased with our made associates Five-Pillar and Strategy for XX% positive increasing brand XXXX point improvement and growth achieving of in most years.Finally, to shareholders. growth benefit our rates cash from on maintains sheet with shops. of our balance Potbelly the and flow our position fortified corporate a our the cash

annual unit our began X and these of profitability targets introduction mentioned, The As of million, ago XX% growth. and successes Strategy I with growth. March unit level of $X.X in and objective we unit X-year shop years introduced Five-Pillar a XXXX, unifying XX% volumes our margins average achieving of year, the traffic-driven of following

have So, XX% our currently into to growth how $X.X of We XX% have unit achieve average we goal. level visibility reaching and million, the done? volumes have unit margins generate shop opportunity

with we sight, XXXX our that growth believe we we provide to is long-term can new ranges also what introducing coincides of the unit as X,XXX With we see we framework, sustain a over achievement our in are time a to of path a we targets next.Specifically, view system. think prudent that our can it achieve

mid-single adjusted expect the mid-double unit in digits, the low digits. sales generate following in We digits, in Same-store double to the to the growth long-term growth to EBITDA growth. low growth low

We We business. as now. aligned the in fourth targets like Potbelly results proven same-store to ability coming an that Corporation operate top broken strong X.X% sales quarter, fast line historically long-term quarterly of way believe growth power feel say the and point, category. that algorithm like this proud within growth our again, to a with traffic understand solid I new with set the strong challenging back achievable have casual but grow traffic demonstrating quarter to through growth, a growth. this how the brand but driven were the we even the I'm We to is we better performance record delivered results sales share years.Turning this our at our primarily to

long-term sales In in XXX terms the margins starting our earlier, in strong dive execution for for labor achieve over point against many were the at and past, Potbelly as and of possible digital disciplined as profitability, Potbelly year-over-year in costs a team long-term the food us And said improvement XX.X% now into experience. results level have a these past growth through strategy the laid I our on success.Let basis targets with new rebuilt we made resulting leveraged quarters I've out trend, sustainable how we quarter. to successfully our strategically our shop the plan specifics

Perks approximately channels shop continue sales, web see third-party Potbelly-owned and For increase a the program. of approximately from shift digital quarter, our our an and of total Notably, our versus points app, digital progress we away in XX% year, Perks-originated orders. towards business business continued XXX by loyalty represented driven to our in last basis

as impressive Potbelly increase continues Perk's effort fruit grew program. Specifically our on activation Perks, strengthened Perks fourth to further our loyalty program as an launched and quarter.In by January, digital acquisition we we during Perks loyalty the bear acquisition enhanced member XX% to platform we our

Potbelly, visits. customers X,XXX rewards we food. more available program now have before the rewards great were too our members too can our earn be and about could long Perks earned, faster only than redeemed believe upgraded menu ever could Perks celebrates and most redemptions. items after Perks points of Previously, which love what take Our for many

including coins. desserts. and that, Not only items different XXX we only entree, now for sides XX in offer begin can redemptions also Now redemption, menu

can by far thus which with the accelerate And of earn members and to seen still. menu boss status an have their digital they already moves reception for the rookie standing as from not area for the strength new coins rate substantial level.We're while Potbelly, options. redemptions pro to we're Additionally, is excited

food throughput franchise our to and vibes customers sales proud with the delighting of top experiences customer continue and focus to Now, always line. so is great be and on I good foundation our for company drive growth. operator's

will believe to channels, is on larger our this sales.As fuel to core Additionally, shops brand traffic, XXXX, our well initiative. XX% further ongoing marketing our versus over value will to contributions strategically XXXX, intend marketing into outperformance. and all we press our update of to from drive continue to be full sales traffic benefiting drive I'd our and company growth. year traffic-driven like we look system-wide end, we franchise our To continue program franchise customers.With help invest marketing that as of growth which our expected growth acceleration excitement that, designed a from fund, loyalty full X% sustain for us digital We on initiatives Potbelly you as Perks to and

of to units we under date time Initiative be pipeline Growth of made call. very Our our Franchise goal busy have stands the X,XXX Potbelly as earnings the reported of Acceleration work in Historically, toward growing number our This at franchising U.S. candidates at franchise great our qualified continues shops. XXX shop at commitments the we building progress team currently to new

committed our our continue the approximately have view with shops. forward, we'll in investors shops. have operations weighted we previously, expect to into minimal for openings turn starting shop as quarterly as Noyes Combined reporting quarter. we progress.As still back half up and at Steve which shops with report, our visibility bringing measures several in the to available making commitments unit both to the we Adam a achieving ensure that as our development year I'll We delays we XXXX, total the deals as development as area into as committed additional the gives with at approximately open better new open sequentially XXX shop open to ending shop achieving under with XXXX. unit our committed shops, We that, to in XXX call year.With ramp locations plan forward Going sharing we process. team to our franchisees are go look quarter on of of total X,XXX our commitments year-to-date updates stages about shop shops remaining first closely through growth and openings spoken development in detail year our in the fourth commitments meaningful performance through all are worked we agreements look and shop the progress U.S.To heavily the development end, now to growth new we've the year-end financial of believe reporting development year. over pipeline, well be That new we speaking the XX% signed to in as said, begin the quarter-end, for XXX XXXX framework, our are pleased development we to of and we

Steven Cirulis

approximately our recent Bob. were $XX,XXX. impact to offset in Average impact approximately the $XXX.X afternoon, fourth short-term the you, of of quarter partially benefiting weekly increased million, refranchising XXrd and Good by the X.X% everyone. week. the Thank Revenues revenue from transactions sales

greatly demand digital our excludes XX.X% Same-store point the sales costs by growth compelling that year growth continues points through last Our sales, was of be the Food, year. versus our at we effect to system-wide QX same-store align beverage XXrd of inflation sales Overall, sales quarter as of of shop X.X% to improved impactful better drive and holiday negative versus expenses. contributor grew basis packaging compares $XXX.X the XXX a the period. XX.X%. strong prior commodity value week in a basis timing. channels.Turning to improvement Traffic proposition million against to with marketing approximately XXX and were

of leverage increases payroll higher year, along hours-based average market period. margins sales, year includes operating condiments our which year to XX.X% carried was XX.X%, point versus costs. meat of XX.X% basis our New spend. level a increased the top administrative York by of the increase Labor prior improvement as a higher in were with with the revenue. refranchising to period. the attributed XXX City expenses prior chips, brand due line of point our XX XXX basis improvement primarily guidance.Occupancy the our cost sales, were improvement the G&A and chicken soup, shop driven labor of occupancy quarter, improvement XXX input in a versus year-over-year.General point leverage, and stock versus sales the were year-over-year. compensation expenses in XX.X% ongoing Other grocery driven saw which fund The XX.X% and earlier targets was increase retreating quarter year basis by bonus The primarily basis fourth to was and outperformed optimization of points This costs Our of in Overall, were an category, produce, is This predominantly increase accruals was sales, period. year-over-year we prior than fuel efforts. expenses development increased the largest

As business as franchise-based we as we administrative quarters, we more believe and is sales percent to system-wide a general become discussed a more to time. in our applicable continue way over of expenses recent view

basis the For adjusted Adjusted reported decrease income bonus by was and as year-over-year, primarily total of $X.X and XXXX. million decrease and shop G&A, EBITDA by approximately We level accrual million of the of adjusted impact million, improvement quarter XXX was $X.X year approximately EBITDA investments the $X.X of interest due well offset system-wide administrative expenses in general affecting mostly prior quarter, quarter. as compensation, flat XX.X% $X.X net revenue. margin. a compared to development refranchising, to or income on fourth This period. million for higher the sales.Fourth a driven stock was point X.X% were net was drivers This depreciation similar versus

flexibility interest As credit provides million we new significant ago, weeks announced our This $XX facility few recently us a financial pursue to facility Bank. X-year cash growth Five-Pillar you signed approximately ambitions with new net with to a ago.Finally, led provide million revolving we as guidance Wintrust by our year as well following versus like $X I a savings now would items. under Strategy in the

XXXX. in The Same-store following. digits, week the the expectations in for X the sales effects and XXrd high EBITDA overcome growth occurred to to low growth our XX% growth the the impact of of refranchising approximately adjusted growth half The digits. rate EBITDA shops refranchising XX of mid-single double majority growth low For most of and full our in single second we the in year is quarters XXXX in pronounced refranchise as the the XXXX. of the XXXX on EBITDA XXXX, of first anticipate unit sales

able of XXXX, adjusted expect strength our headwinds.For quarter high these the Same-store anticipate to and start to we we the management growth team, basis points following. growth first of With between negative XX quarter double-digit to adjusted be achieve operational despite single of model EBITDA low of to basis and the million weather EBITDA including between million. $X.X the and sales $X.X points, XX positive impact and of

growth to Bob back sales following growth growth the mentioned, introduced over digits mid-single growth the the mid-double Same-store low the I'll today, we as low digits, to that, in and Finally, in long-term the low unit ranges. call adjusted EBITDA to in digits.With double Bob. turn

Robert Wright

Steve. Thanks,

tirelessly employees, From center our associates for hard me past for associates their and our X to our continued for the our growth brand. our XXXX, paving this to guests the with targets. to commitment in tenacity Let been experience is end of XXXX years, to meet drove Potbelly support the way unique frontline we've thanking work provide what their by Potbelly all success working our and us

look term. As with excited we the accomplish can ahead, over what are long we we

the we're success we another I are foundation delight look strategic carrying line open loved vibes to achieving value. our on as to year neighborhood.With on the out right long-term company. vision most Operator, questions. opportunities maximize with and for our shareholder the the food laid your please have to And for growth mission with We brand great answer be track and and to in questions. good to every forward plan, the ahead our of that, sandwich a Five-Pillar to capitalize customers great happy

Operator

from Craig-Hallum Capital session. Hamblin now comes Instructions] begin Jeremy will We the [Operator question-and-answer first The Group. with today question

Jeremy Hamblin

a FY just really the to by making on understood Congrats progress. sure adjusted and on year wanted guidance EBITDA. that strong I start significant 'XX I

a and So, revenue? how presented, total or just was growth table guide the it percent a double-digit in rate terms single-digit as low of high the was to of

Steven Cirulis

good again. to EBITDA are on growth hear to those Yes, single low the your digit Jeremy, digit, voice dollars. adjusted -- of guidance double rates high EBITDA

Jeremy Hamblin

XX% target just your the coming then level And approaching to margins XXXX. restaurant for on back here

progress you items, do see If your of contributors that towards this XXX across year-over-year. you year, line target biggest look where almost basis making points the roughly improvement to

Steven Cirulis

Sure. I'll take that one.

efficiencies job margin. But sales also continuing benefit our The will leverage in does that achieving nice I on side. certainly team continue think from to we to benefit ops we guide. XX% space optimize from the labor a labor

shops. well. We to as are are obviously going continue there to roll in some PDK There our efficiencies

which bit. OpEx also We leverage. P&L, have down side, look the shop but other for business, will occupancy And expanding leverage, into be aspiration quite catering And some piece help margins. the you when leveraged a certainly the those less will really,

past, sales. about I other in the think leveraged we've XX% with talked gets that of OpEx

came is our out sights. So, we're XX% -- within the kind that into XXXX with if margin velocity you we of of certainly can see QX

Jeremy Hamblin

cash refranchising from seen your in healthy statement, pretty nearly you noticed saw proceeds of I in year. flow up like step QX, the had $X million from what in just you then And it earlier looked

XX it think you I the that to in had maybe quarter. implies units sold franchisees

Just with to. on that confirm wanted is related some had just $X were sold? then you agreed XX trailer the number. there to that deals fees already locations the that And guys million, to prior Or all

Steven Cirulis

Sure.

refranchising. fourth got we the we of And we hit a We Columbus the X were the the as with selective it's will our talked had the came sold going be from sale of pretty we've side. in with all, make don't go kinds that of definitely have of quarter, as which the I which And necessarily But done And first shops franchise quarter target excited terms came XX the well, and additional a past those to the refranchising, for that deals shops. few certainly with deals then unit given think in shops. we proceeds of shops counts that Seattle that sales majority in more discussed our too, on us from we've do. come those forward shops. of much those proceeds might we refranchising in the the

Jeremy Hamblin

of thinking was number X-year it that you now I that be had about in that, before, roughly that period. number maybe So, Is that little think to that a XXX locations a terms out you over laid a bit -- less expect target?

Robert Wright

haven't whom certainly because to that's selective strengthened we're chance we business to time we we're why annual been engineering said, gives and getting focused make position a on exact a as it more go saw guided when to take I that still and basis. about Jeremy, we we and it goal said where that to more a And in be as in be development can more count be for more willing selective XXX always if And play. we'd group long-term Canada think sell in sales development purpose We're just to lot that market to going be was it let has those be. But getting when going the that knew that we -- sure probably be. particular always we're do much how to just those. the the on we target of has would We just a financial the it. never has growth. It the unit an pipeline the and a we business, underpinning the sense and the we with selective forward of shops with many our it. go, as think strengthened, us made and of part as then franchise to went strengthened, we for or And was we've units a interest

Operator

Markets. Smith is with next Lake Mark from Street Capital The question

Alex Sturnieks

the Alex Mark on Smith today. Sturnieks for is line This

units, strong. now current looking very restaurants? growing for new at for are for they any into new pipeline Are franchise there The me, And are How headwinds just anything the franchisees? it's developing? units first one getting facing the like

Robert Wright

excited comes at Yes. from. think we've shared the step process in calls, confidence previous pipeline and our is of the into about Thanks. I each our We're visibility all levels where

go, in from planning I shared, size think about. very we target layout the that way. trade as then frankly, trades the those of so visibility puts of reverse into targeted focused franchising we're franchisee we've time on And their with gives areas structure, engineering with potentially with the brokers.Our the our that broker franchisees partnership successful that previously other those that mapping architectural for deal us time And can master along the of concern involved the might area areas can we're and those most see and pre-approved at element, and the same and real talking is the to confidence shop that be of all go the straight those their brokers and we work We SDAAs that they there. firms them the for trade estate

far fewer our permitting I the it when do phase efficient. think up surprises And shared really inspections X we which and be does and issues. lease, signs we've have you construction that things. much into will we more we you them the before It believe in contractors the get to have they if the get to the phase site sets past empowers franchisee that

much If expedient by us you fashion. get you're course, approved a designers, designs to then use more you those going in your of know

we're way, confidence along building our of we a the result steps those in see think pipeline I of So look, it. as and all each

at significant slowdown be no point. we'd reporting So, that this

Alex Sturnieks

to labor and level we I'll from for of be commodity me. then And any more going costs Kind prices watching? outlook restaurant margin, commentary forward? just your take going what's one also on anything should back the And

Steven Cirulis

the QX, honestly from little Well, we points. Sure. of in deflation, in XXXX a benefited about bit down commodity certainly, basis XXX side on

for For -- and cost a into the stabilized. and the digits sort over in year 'XX, And I of several at last we're inflation, had but movement lot it's mid-single-digit early as much late looking really our that it's us. We of commodities ahead, with 'XX increases. think single inflation. low not low in But moving to 'XX. commodity we've of wage around of moved in seen on certainly inflating, quarters, it's wage inflating the terms around a as kind still stabilization have consistently range It's

Operator

The next William from Curtis from question Blair. is Matt

Matthew Curtis

recently. I think guys took increase you price a

the So, ask plus then quantify wanted how price And basis XX and full you separately I in weather your I negative just to quarter year if the just embedded points in guidance? you're basis carrying penalty XX points much first price have to how could wondering that's for guidance. benefit was that now then much the you guidance,

Steven Cirulis

start. I'll Sure.

it on X.X% additional QX, carried in So private price we -- the gross about X.X%, point We ] in Matt, QX. and QX, a we raised [ plus that with of so X.X% increase had [indiscernible] so into X.X X.X% for or -- carryforward quarter. X.X% was an

carrying our we ahead of year. looks look this of about X.X% last let's We're -- to low what it a more about have in to quarter. X QX. into to going single-digit with As we price quarter, had X increases, like We into we're them just year, the one timing see, price this similar had story price increases,

Matthew Curtis

the And the penalty weather then first for quarter? for

Robert Wright

we're the with a to geography may similar I and that fast everyone don't think because saw and other we not that brands. impact, seen casual yes, think We you I weather probably given is have we break out not experiencing QSR even -- able have impact

in think key kind continue through February with is I weather with happened the the around We with the since and trajectories of what's stabilization some the discussion we pleased to saw quarter. the nice January. be trajectory moved

it see not you're it's science it's peg January weather more exactly period. you during a when very been. than But has think that to So, can try to art a impact what you experiencing little -- certainly

Matthew Curtis

drive with on more to us of visits your could execute may recent of But engagement? ability otherwise [Technical you done incentivize offers anything tell improve walked aspects update, what you separately, Difficulty]. targeted then about Perks effectively Bob, some or through customer-facing have the or backend And the the you to

Robert Wright

the items we happening because and means to that X level. the have kind of that what changes different X members Perks think do we several number those Yes, you the different about of make up near If earn items performance example, the members changes With XX things with achieving they're the we next it Matt, can your at unlock boss I getting can we to a getting when you coins start close something. their it's of that them leveling level, we question, very to speak to levels consumers, to coins. can of customer program, they're means you made, the next some the things backend. on of peak ability loyalty versus level, early it's menu earning beauty pro a close And to great customers, Perks could when consumers have the their going.Because at points among their our those across Perks are are members menu shifts we're X those what balance they entree the Perks with they things accelerate kind that to with have communicate that level, for with the more with Perks they're we what for able our those of your their today, stages, to many for. and our rewards redeem and when that and very you want something exchange for preferences We're seeing and behavioral across already categories when trade for the like to it pleased the of and

more one in I advantages nurturing quarter backend prepared and during number we're member from think remarks in they a customers this.And year-over-year and relationship the even consumer flows on active the with come an member you to about of the the in from customer Perks is best and our developing deeper member. the we're from more it. I move deeper tell and member should that the of as To why to excited So, more that to shared have that acquisition means XX% increase of customer primary

the pleased we're us far, Perks very, there's with a lot so So, program. with ahead very still transition. But of the

Operator

The next Company. from The Brooks Todd Benchmark question is with

Todd Brooks

I well. hope tag left have here you're the few at a I questions end.

'XX. talk certain how Bob, more additional in talked all, to a you breadth scale versus kind just a that you brand spending up we're put putting love and of other to 'XX before if XX% there's doing in year-over-year fund how of maybe work. through get are support any increase grow you you opening about Would channels the channels? of to work, to of anticipate roughly can First know it's digital about But I to what Is it the new those assets want channels? to hear those being dollars incremental brand.

Robert Wright

it's it's in full the our a year contribution that. I get of Thanks. simply Yes. the to We're overall we excited contribution meaningful about because shops. our mean, of a the top all fund. best of brand made X%, impact more both And on higher worlds then, growth, line the of by flow percentage course, of average net

investing right of Daniels are it's as specifics tell of into the think that's David asking we're So, ourselves exactly that We the well. one We up rest go and won't that and us money. question, you space. can that team would the the exactly see investments the exploring well I in those you of competitive advantage our our the across of distribution as But down digital as funnel. where part media

driven more go more you continue to media that as consumer rest the to of go get other remain want the margin a P&L, on the least the incrementality got think driving traffic of we've decrease fact funnel, expansive. in at to in contribution. leverage our is X:X for extent what maybe more activity.I Steve spend primarily of our to to deeper we the any then and the investment. use of margins different our brand do or to above we're levels, to even the driving, at throughout consistent shop see X:X. the on they to that a to do the by propensity be going We all the balance But awareness that mentioned you that on that. the expense up love operating impact increase return deliver here fund or the if And we in expect higher would funnel As we

we're that. very far, so And pleased very, with

think can we the lot we do. know X%, there's most a we're And I behind more So, still of that well at industry.

well, to pushing. learn we how as it going So, keep we're to do

Todd Brooks

maybe of few ones, alley. follow-up these more Steve's A

a You and you've period process? where at about to about lever in as going there's reach -- how that just being a the how thinking XX.X% peak of in And we then at XX%? are system-wide think tracks of through we're we north quarter. peakish forward. Or 'XX? we level course talked a over being the start And be going will about level sales Where I of refranchising this this are should this G&A here talked

Steven Cirulis

Yes.

G&A the our of place -- infrastructure tend to think reflects as I impact to expecting. kind of growth. trigger we're embedded because the and the in number some And of new as that you the we've from units transition refranchising G&A in is to see shops, us there's launch that in investment also certainly making G&A made some And those our piece that we're the an it there. important for put we continue development is

that move though, and would well sales XXXX another close suggest some that you're percent of sales, of a below start G&A to double-digit company our will numbers, number I of start We where in you to are, of system some of going XX%. see see year probably year to our to a as

drop you'll as for get see to of and get 'XX because as percent as we those we into we to new as see opened up. get So us G&A 'XX, even a those into further sales units system start that's exciting

the business model going us because create business and that the value. exciting we're that's a So, for that's model to building that's it's

Todd Brooks

of a just value people. week what questions. then period a XXrd the into where talk of And volume matches it we in up it quarter? education couple turns And higher sometimes fourth Can the for about the was

margin a to sales talk from it's from below-average week repercussions then just what about the standpoint Sometimes that. week. and XXrd a we contribution there's the Can

Steven Cirulis

remind well everyone, week that Year's us, New just both For holiday as to Well, the for as included Christmas Eve. sure. XXrd

standpoint, million dollars, it's addition lower about So, it's lower million, though sales sales, in a even volume actually volume, of the week. system-wide a So, a right? week we from added though even $X.X $X.X added

of an sales basis, it slow a impact, regular impact negative $XXX, right, our been of if instead weekly was better. it average an of week, on kind week, probably sales were holiday average have a weekly a meaning So, about would

and So, going it volume to and had margins from you're lower that you're -- when getting impact some as right, well. see shop related,

Todd Brooks

we're shop or you And can a something is exited a if impact? such a hurdle. robust of even of the XX% the that there. closer that that rate impact size bit And you with what little drag to getting there's already margin Because much the

Steven Cirulis

but did on flow-through It not there. a have much, have to we're thinking forward. of drag, was bit just going margin, we do about slight everyone aligned a And some of just good it shop things kind so a for headwind keep how

trailing calendar for through XX the As basis for aligned we're weeks comps, Everybody X or goes is to kind part, on that most a of one holiday weeks we're the us. those year-over-year. these going and for to this repeated X report every aligned so so XXrd the basis or that weeks same XXXX years, are in report a comps going

Just to but did XXrd AUVs, shop include week same-store our as the the margins XXXX. included our the remind system XXrd for sales, quarter everyone X sales not our for week, well, our

Todd Brooks

use adjustments basis? adjusted relatively final would about still it a a rate then for housekeeping adjusted fiscal 'XX, in. be then and How tax just to I'll reported it jump EBITDA do we I minimis. EPS on And we will assume both de and back and think for one how

Steven Cirulis

Yes.

increase offset I You had good actually to we NOLs start of lot taxes dollar use. right, a some this amount jurisdictions put is we'll We it, profits, there's the generate to the can't everything. our income again. but continue a able that our And of cap to not news think right? all as offset you're liability that tax year, that on

that amount or tax is business in those expense the fourth tax the is from the actually that an profit reflective that our show right, we revenue right, The of basis of in our from reflects that a cash a NOLs. that We're way offset benefit can't 'XX the terms tax showing so doesn't compare rate, you NOL. we quarter we the of tax incremental generating. the moving, better in that And way the report increase rate get and with we're

at you're see on to as that But of low rate different because cash the of end in to we're right, for looking range sort NOLs side, utilize. So, something range the up XXXX you'll the is your the we're tax model, to able mid-XX% likely where here. going

Operator

to Bob session. like Ladies and call have today's reached end of we would turn to remarks. closing the over back question-and-answer for Mr. Wright gentlemen, the I

Robert Wright

Thank for once you, you, everyone, today. again us operator, and thank joining

can you for helping to grow. pleased us our We the as for their and a the again, in that to quarter, And our efforts great afternoon. thanks year driving once comments are today. the franchisees very team and Have you call joined Thanks tell the our for with us from business. delighted

Operator

attending concluded. presentation. now for The conference Thank today's has you

You may now disconnect.

Potbelly (PBPB) 7 Mar 242023 Q4 Earnings call transcript