PBPB - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone, and welcome to Potbelly Corporation's Third Quarter 2024 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] On today's call, we have Bob Wright, President and Chief Executive Officer; Steven 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

Good afternoon, everyone, and welcome to our third quarter 2024 earnings call. have our should accompanying release everyone presentation. investor now, access earnings to and By can in be on they not, If found our the website. tab Investors

Securities Litigation periods, remind of made of meaning for Private of other Before that future they future contain our be events begin of forward-looking our outlook future as remarks, These as XXXX Any regarding statements considered need we future financial such the performance including formal forward-looking upon subsequent statements management's any representing should guarantees Act the within Reform statements certain company. should forward-looking nor this be on not XXXX. relied date. to comments any views or call the of will the or I everyone are performance statements,

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

these could be available other our Commission, and will the Additional the statements with business and given detailed information our results concerning heading Factors are Risk Exchange from under forward-looking Securities filings materially at can today actual which risks sec.gov. differ be cause and information the regarding that found that factors in the to

call in Potbelly's afternoon, website. And Investors and our appendix over of measures these the tab in there the of During included non-GAAP to available the Bob and that do Wright. measures U.S. discussion their President also not I'll are will the issued press to Reconciliations the of to call, directly to conform turn or principles generally a CEO, be now both some GAAP comparable GAAP. items accepted presentation release which most are accounting investor this on

Robert Wright

for Good Adiya. thank and today. you, Thank joining our you call afternoon,

X-pillar working brand. a third plan quarter our showcase driving on as are strategic and growth emphasis Potbelly of our results a Our

comp we and positive quarter, During Potbelly utilized our drive in to the trajectory. shift a app our Perks

momentum comp the improvement into fact, quarter. quarter in and fourth In through our the third of the driven we've end

what focused shop We and also Potbelly Potbelly growth metered consumer our our team delivered as a our G&A be growth. The XX what basis emphasizing challenging on and remain we our great be control on long-term good environment, development. with mission brand to we sustainable vibes new further we EBITDA food we positioning the committed for delight shop and point in serve. spend opened is to customers X a journey neighborhood entire continues shops every improvement loved profit margins, in new to sandwich most to to accelerate Despite year-over-year aid

Our strong whom customer and X,XXX of you your groups possible, satisfaction scores I members without that over none out. To truly and day dedication work and making to operations hard bear say every to date franchise Potbelly would metrics for be accomplishments continue want special. to our team thank to our

As our structure so comments Strategy, our my I stated, success this I'll X-Pillar around most is framework. afternoon in that rooted of

of to our business. drivers the Turning

quarter, The great to has we that during quality improved And of value. X-Pillar first always third craveable our facet I'm proud pillar. been a the food pillar this say of every Strategy at

with start value. Let's great

across in previously chips to Value late turkey, system. chicken Skinny or a spoke we expanded we a which Sandwich Combo, As our includes $X.XX and Everyday ham drink our all July, with of nearly

less these perception, done with frequency what return and stated driving digital, exactly with the to primarily has we customers. introduction likelihood combo intended value in-shop the of frequency, Importantly, customers important low increased

value brand Additionally, digital awareness, and share continue our we loyalty options customer to I'll drive in minutes, Perks a as program. through promotions few

this Next, we'll discuss the craveable portion pillar. of

cookie. hard a with boiled Pepper and Ranch Bacon, including Salad, Farmhouse Chicken well topped tomatoes, our ingredients as custom cheese new the for classic start all and Swiss of innovations our egg Farmhouse the return several Sandwich Applewood with Hot The fan favorite featured chicken third our our cucumbers quarter dressing. new We Smoked as of all-natural distinct with and Nueske's new customers breast,

hand-dipped Of one meal ice shakes. cream or course, our is of no signature cookies complete without

So us items return our Shake Blueberry Shake, S'mores fresh Marshmallow and, American with we importantly, and with and our they innovation Cookie, a returning The items. fan Apple for and Pie our along with of unique menu Muffin Toasted new Cookie. new introduced customers, hit favorite keeping the were menu our gave credit

Mac higher to introduced the take our every stopped. that giving as X marching to and meal the to next we're more say made gaps our now we're from with our means I'll excited since to the XXXX and recipes signature well haven't the in never favorite menu, featuring to its onto are embedded broadening barbecue is proteins. Pork. indicated which satisfied. ways fourth our both LTO mixing added throughout has adding the We quality. at to of XX, from of ahead hot Cheese. that earned pork, built sandwich on spicy and I'm more like trademark rave had menu in share excited our menu, We're Mac our receiving Barbecue sandwiches. Sweet new did to customers flavorful it's as aimed new the offerings new it place & proud their Also, one-of-a-kind with choose core Cubano, it's core sandwiches. that new sandwich address week, additional the We of freshly Potbelly pulled our care our a our have very and our quality reviews customers slow-cooked Smokestack as a some Already on additions we deliver by [ sauce ] core to opportunity, turn The toasted to the to time. And we ingredients our fan pork. protein sauces and quality everyday appeal Heat menu signature pulled quarter, we introducing new this menu slow-cooked To sandwiches, even great November research handmade-to-order our our Monday, is expert experience. I'm these as Pork smoky that reasons menu & areas in (sic) areas members Potbelly, everyday prepared some trending customize that we're team well and customers, made innovations menu expectations. And to

also and Wine sauces custom-made menu, X we asked hot have X Vinegar. and And new award-winning proprietary We for Ranch Potbelly Hot signature address our that flavors, on customers sauces including both the spicy signature have Red have Garlic Aioli including peppers. Heat also additional that Roasted Pepper Barbecue, Potbelly craveable Sweet with

red include updated roasted cucumbers expanded Finally, available peppers. our and toppings we've sandwich to and

on profile beverages fountain options To industry. are keeping beverages we system-wide for at they has and the our Craft beyond our our enthusiastic our our organic increased customer for they menu believe on completed associates week about expand last traditional and drinks training even an the these broader add flavorful rollout our and brand, done more on have with Company. In to expand even Consumption next these changes, September with core Refreshers Our yet. with franchisees of options Potbelly rollout the better-for-you capitalize in appeal as been substantially base. We're this We interesting and Tractor customization the operations the week. team are and customers' will of not recently more genuinely cold flavor in have non-GMO. of Beverage a this, focus and customers partnership and noncarbonated end

Importantly, rollout incidence is meeting customer is for the our beverage and driving rates. satisfaction expectations additional

traffic. at In digitally-driven addition a fourth awareness, to the craveable and for food plan calls of connection value, pillar quality great our strategic

points digital business our quarter, XXX basis of total represented increase the During an shop our over last versus year. sales, of approximately XX%

in expansion represented see within points entire As in of digital channels. Potbelly-owned mix. the channels quarters, a the mentioned XXX we mix continue basis quarter, we Potbelly-owned recent year-over-year to to our third during again, of And improvement shift our digital

driving business to Potbelly is driver loyalty at redeem customers. quarter, for for and our cohort proving increased program, is Perks cornerstone strategy. value to a In executing as be growth loyalty Perks members our strategy our a important of on digital these Potbelly. in the our this Our activity our frequency, our as promotional Once that digital where coins program Perks, well saw focus their digital is of Perks winning base again, frequency end, central our and every significant program continues customers of

our Let pillar, initiative. franchise-focused update and, fifth me development, you on in growth acceleration now franchise particular, our

continue make progress quarter, to phases unit across growth significant we During our the all of third funnel.

franchise total franchise XXX of relative our into to to the year-to-date deal the those gives build, our XXXX last efforts. We're especially of having Importantly, And progress pleased commitments, franchisees and to shops we and our and this have and We're generation open total that great growth to confidence quarters about to strengthens years. converting expectations franchisees are to committed shop in infrastructure coming bringing built I've quarter, continues our to through the increase proud across franchise meeting and continued remainder spoken also and in-person development increase signings. recruiting I'm Franchise success lead of groups. an which our XXXX. advancing before, their for me XX, through showing candidates growth XX in-market is increased recruitment with our XX commitments say shops and

resulting quarter open to for already the Lastly, units during in XX the additional for total the openings opened quarter opened pipeline, year. of and third development total a additional year-to-date accelerated we of in current X our X total the fourth a another X shops We've third to With of shops QX, expect quarter, an development well. quarter. XX through to XX in as shops XX we

is will XXXX As impact growth our representing I end experienced we last best shops These unit year development XX% shops some of opening delays franchise XXXX, shops soon. from our to these weeks small their we'll the be close of a to to record growth are We on anticipate number And have to lines. time year accelerate XXXX clear. since further and the are shaping approximately be system. here. unit and development, of up in there want the few that with short-term be

the just shops market building the these success assure that, over early in I'll to shops now been States. continue and the estate planning to results evolving you you're detail path growth in are quarter. turn to that X,XXX believe well perform our units seeing is the XXXX for engine third of on We new call our environment. systems our and Steve this tangible real working, are started. With United we've our Finally, sign the that performance financial to the we a getting consumer I of

Steven Cirulis

relative $XXX.X Bob, Thank $XXX.X driven of third you, sales quarter company-operated lower Revenues by the driven XX% and up we as efforts. of that everyone. System-wide in the of were a commitments. last with refranchising Contrast year-over-year, in a unit increase unit were to refranchising increase used growth. drive revenue franchise million, an franchise year, new year's X%, of million, XX% impact our by the by units. Last approximately shop $XXX.X million, million catalyst franchised last good driven third afternoon, to system-wide with quarter revenue $X.X short-term year, successfully

franchise We of due Also, new have growth deemphasized to our on in unit behind last shops negative pipeline company transactions sales strong impact largely revenue in our is from year's XXXX refranchising refranchising us. the markets.

shop only down high will the were XXXX near same-store refranchised expectations. We X our end were company-operated weekly X.X% likely sales sales XXXX. Average XX $XX,XXX the with versus approximately in end of the and year in quarter, in

and, margin points tailwinds execution. slower more sales a result to XX.X% level expansion shop Our backdrop of some against basis importantly, diligent of the is annually XX external of

sales, beverage guide. Occupancy to sales, offset employee our the being of pricing the offset the were lower XX.X% of XXX period, viewed common to our as in of prior many prior due which to was of and of of expenses sales, rent those prior are a Food, with was commodity due shops This that XX.X% predominantly focus types predominantly versus basis sales, basis sales XX.X% as This best every and year modest basis fixed This packaging brand increase administrative versus prior maintenance improvement more increases in system-wide year our one to increases lease a a action was on in labor year in driven favorability the increase are a expenses. was versus from point were year charges a was they like points airports This expenses, group prior XX.X% X.X%, rent to insurance driven ongoing period. as expense period. used and of shops, bonus of accrual. by by percentage optimization to point line by predominantly corporate fund due the area point than deflation period. a XX operating with outperform in on year. Other hours-based increased costs Turning quarter. Labor period. the spend. General of a XXX year arrangements expenses support basis our management shop and and versus prior of continue variable XX a combination were leverage were decrease

million a year-over-year our growth EBITDA management X.X% $X.X prior increase versus or of margin, income ongoing income total and shop $X.X of quarter. in the for the driven franchise improvement million was This Third by quarter net was disciplined shops $X.X million $X.X of of year performance net adjusted period. was XX% strong million or G&A. We revenue. continued reported Adjusted the level

approximately of purchased third approximately shares XX,XXX $XXX,XXX. a stock the we quarter, common total During our of for

QX throughout category X-year the repurchases one program repurchase the year and our of outlook is of remainder year-to-date anticipate share for our long-term Our allocation We our program. Incorporating results, capital the component our strategy. we same-store between and into growth adjusted X.X%; in X.X% $X the sales ranges: million now momentum to QX, million. of expect to following EBITDA performance negative land $X negative our of

the that, EBITDA between to we For year Bob. million. With call the $XX.X over $XX.X turn full million to I'll updated guidance have to X.X% negative back same-store our negative sales and X.X% to our adjusted and XXXX,

Robert Wright

Operator, reiterate you, I drive pleased date. line to digital food the level is answer and the franchise-led that the what growth to a Thank let path accomplished we're craveable great of traffic a that, to Potbelly connection the our on future for value, to open job X,XXX XXXX the growth a how with brighter. Through Steve. in winning I strategy clear to But continues we've units the opportunities with capitalize to U.S., and awareness, questions. strong in to a me for we're together pipeline quality happy take next and Potbelly closing, executing even in any and questions. am team ready strategic on at beyond. With X-pillar our has plan please ahead our believe done In tremendous

Operator

Our Instructions] Jeremy with is [Operator Craig-Hallum first question Hamblin from Capital Group.

Jeremy Hamblin

in quarter. to solid the first I same-store on kind the results the trends. the to wanted Congrats of sales come

could to you was seen improvement and what of QX if in menu within you saw us the saw provide a more detail see think just acceleration QX a then the And on cadence little check. you bit comps, said little if that have behind you us average sense of bit and throughout that. what some also Wanted I traffic, you with here a QX. could pricing give in

Steven Cirulis

entering how Beryl then a Hurricane and in then have price And the was quarter result quarter had in little coming saw. Great. in proud step the of had for terms the Sure. Jeremy, we some this X.X% we the our us. of of mix, is X of we're of average Steve. Yes, start few increase rest beginning relates impacted business. been thinking QX also a then line. of the negative the timing of PX think -- earlier elements of into in Hurricane back and improve X% an and the DNC, of I part But some to backdrop QX into same-store to performance, quarter July has about combination and Chicago was a bit the that this really of bit did in that July holiday had stabilize, out average parts the a for Beryl see quarter, into and of in on some we was impact we check we DNC quarter. price things was gain the That's sales. actually the and by on from started And the it to us and about had in where a flowing August, check, see The our a things then X.X% the things, was acceleration as which better But momentum consumer the of impact great. our than working the we would carried the when rest against beginning in mix. for to QX. QX. And X.X% back where like the traffic, traffic is a market. And the that started we step are

Jeremy Hamblin

we Great. on carrying the pricing? assume menu can X% so you're And then about or still

Steven Cirulis

thinking our and our of pricing good we some on view saw increase Well, were year. inflation. we Actually didn't price for had as the kind about deflation really a quarter commodity throughout seeing longer-term We inflationary us. --

for into as gross But And that anything from forward the the around going our is a I like head price. but action. carry this see didn't we carry said, from we did allowed So a not to take us we'll QX, what to pricing previous quarter. X.X% for bit need kind to sit price, little forward quarter, of us we're at

gross So X.X% price a for we'll about QX. have

Jeremy Hamblin

then Got development. back it. unit come want That's helpful. to I And to the

So understandable some hurricanes. with Florida like obviously disruption here in the some key devastating markets

about As thinking XXXX? expectation the the ahead here, still unit are as in in cycle XX relatively how kind shops, build XX%? to throughout that year? to QX, you then of even Do a expect will that And you that to look XXXX, development think we cadence of close X development you're the you

Robert Wright

be even franchisees, to share your internal Yes, X at the this our we'd talk #X back. hurricanes development of as of year. our construction a here the especially setback. a things we development prefer we're -- hit one territory And a Jeremy. of peak small Obviously, But little having season take more can that bit teams, for to step we

and the acceleration, previous open year, we we year your will more built and range And every locations. have This than it year, total. quarter. X quarter will point this cadence that in I XX XX to be think about a to about ago,

year see be for will leases few more you seasonality locations sharing we're is ready typically, to that and with are which a quarters. development process already we're have your that this be building than trend restaurant we construction in I'm year. comes momentum. And because a that open But shops as just little construction. QX XXXX, bucking top in XXXX think I bit signed just comfortable there'll and of we in QX next that guide months, We're what of until will that all the

to truly trying think And we've this next the the got about me continue and that, acceleration, you to help and we've of promising estate out got early next that Those really additional within quarter are of working -- build to got model we leases. deals so is to XX- that this work signed that and sign our too. been way. Once remainder it quarter that our is round real course, the working And when you've franchisees on the suggests range, then still their lease to quarter, momentum first that that we're locations there quarter XX-month coming usually and on next year too. of

that got a the fact of momentum year in the confidence head the that's we've So great to on gives lot us such come. a start

Jeremy Hamblin

And a refranchising. the Got comment it. quick on just then

point, a don't there's with you be like should lot to next going that of need sounds expectation XX franchises, Or selling it not licenses this Could whole have So do kind year. of well? to you you're that? that as refranchised? content that locations feel we new that that you this see the at on year do Is the

Robert Wright

Yes.

need year. used, 'need' expect that. just This word. agreements area more franchisee. we're opportunities -- was word and It getting development development Jeremy, -- last to the And we more There pleased use to to sure. of one lot it the what long especially may be continue right would a than right the the I a think think haven't get you will with be I just And refranchising into with in to to be don't probably still sense, I I at accelerated the be for always of catalyst wanted part we shop is -- will the really But muted to that it We willing few refranchise units the really next rolling get first. we're suggested. agreement get our we things do year, opportunistic goal is just think But where that. term, makes you that to year. development we right the

Operator

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

Alex Sturnieks

You got Mark for the today. Alex line Sturnieks Smith on

give what The you of rolling of of are to first more enhance out you kind of the there? in you to traffic? screening of me, promotion one discounting you so for the kind to just done need Last these $X.XX through an us And offerings? members? update is industry? what do combo Kind on for to could quarter, to Or out kind seeing value levels deals order you get like drive this you more Perks anything have I'm if curious else think mentioned offerings. promotional

Robert Wright

and Alex, to you question, Great speak to again. Yes. great

largely got the the is I what of with think going consumer to the you consumer seen past situation. quarters. We to we've start that continuation a think in be

just done. we've anything that the meal an that already we to layer you for chips exactly posture in our I skinny with much. And Pick-your-Pair about And drive think had, what with you we're everyday efforts course, on X Remember, a drink on think, very value marketing the We've see hoped some expect value. shouldn't we my prepared doing about think we're so what we're of combos discount, really, on what back our everyday add value steer I'd work you could important. were when is doing addition that's I really menu. that to shift our you the then, $X.XX where to this a of for what And remarks to and combos that order at deals had, us doing those is value, to with

to combos are our together in-shop -- our shared the on more value about mix our asked layer. And main that. I the enjoying we put and are recall I that be less of component, designed and tended the think we value and we and for and too. good of quarter, And in and previous the create one So feel you appeal frequent, that pleased $X.XX types that really, really you do that is And suggests customers we with success we're tested. the -- who customers. about digital really we things research everyday Perks digital that that with the less to trying a the do

cohort customers I important digital, where low get entire in think were on everyday how those quarter have in and to trying it's channels doing bring we customers to understand traffic again they've value this last numbers you the in we -- ordered designed, spread that higher every scores effort the on did what frequency into that that end value seeing likelihood other month. Well, quarter, those is works say make with overall the I well in digital $X.XX with those because is after once customers in -- shared how that you frequency. thing loyalty their me in growth growth it and meal, as across we're Perks customers give prepared on conjunction back higher return. as their that those us just remarks you was to much to scores in we That was wallets and much cutting and heard protect the as that

to is frequency we discounts at repricing say core the I'd in doing of how them of bringing items very, everyday the digital is a want business. And up others see bit thing quite -- kind the program through deep through last building doing channels So core is and menu we that keep that aggressive the what menu. -- we're and on not very you the

heard damage a a It's time, perspective, us been of bit in that. our of that's dangerous with First That's haven't those you through and because doing we're why brand a really really about it's little we do and a from and just profitability this. pleased expensive to but all, this bumpy thing margin the It's quarter. the interested can balance. a talk very of managing lot protecting both it

Alex Sturnieks

of to shop then switching And over No, sense. kind more Got that the makes of it. just size.

the Just the is any last terms been store here far? curious updates of integration new gone they've In quarter? how prototype, so how from and has performing there

Robert Wright

Yes.

openings. how starting a what out smaller with that's space some continue As to X that pleased have their and said, how shop standard performing than We always key we watching is the metrics we year. performing Every the I prototype, system-wide next those about they already foot puts new out-of-the-gate do point with franchisees weekly prototypical against X,XXX we sales they have, build. sales goes of is that's the floating I our numbers mentioned whether The the development because are. To average be that signed your that And leases how we're into are that square that measures with pleased are we're the really I of little those weekly forecasted And that those those through have for design forecast. that already laid average is as new against of and are the one said, that's openings. that going franchisee they've are on process leased.

because, start franchisee And prototype. a larger square of Some But we advantage lot is. on margin XXX feet the of those fewer the space that foot how the for bit are again, of average a the square with enhancement that on delivers X,XXX occupancy little that's line.

well those year look part design, super furniture The feel, the of that the very digital of prototypical the the and pleased work that the to with PDK fixtures you are all with decor tell I'll for pickup integration been flow, reflect digital the really pickup it. shelf, and the the various So drinks, everything grab-and-go continue elements that that the that part things about shop, and pleased. have of of we're design, prominence built just layout this of are of monitor the the that and the access of the us. prototype We're to

Operator

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

Todd Brooks

quarter a macro on nice choppy environment. in Congrats really a

are cushion we end If could accelerated the into characterize I little end we that done. can QX, Just of kind trying us Or of to kind of sense things just that, guidance? get choppier there characterize them? basis the and is higher a down giving points points, maybe XXX of looking bit if little tail guidance the the a you is that saw may the jump momentum well outcomes quarter at get basis basically the down that consumer coming towards what holidays qualitatively a off within of fourth the as So in or -- way kind has continued a with we to to QX? and any drives the sales get XX which guidance, towards same-store slows

Steven Cirulis

Yes. Sure, Todd.

least what we've QX it's in think we're that bottom quarter exciting being the narrowed for in themselves, you the got forward where more. set the we've we show as great range know, the land betting on looking the the the top And year it we I pork the look like pulled QX ends right, to into as set I if right, see and because can things launch. of like consumer out some Bob to that in impossible remarks think, and think sequential prepared at growth I at and can than would that's with area about seen still tend to or we -- to range, mean, that for date. probably quarter-to-quarter, portend without will guidance platform environment sauces numbers we the explained in that all note either that are that important see, The those And see. of different improbable things we full -- we think as of kind we dynamics up feel range range the the look, think of and we're feel coming the new about the to I to we end things an menu if they coming us might relates QX. And --

So well. the that -- cylinders range initiatives all the we're end high on would those with mean hitting of that as

thoughtful on within betting to much set about So things to that we where tend we those like too our control. not things without are be

Todd Brooks

the a goal a of to unit over X know plus been element That's helpful. signed time. weather-impacted an background this got you to kind and And locations there's talk delays double-digit a And there's we've going gives then can I of And get to visibility. into 'XX. model grower growth -- implied know of of I fiscal you -- years

units to there, of 'XX. get realm XX% of added to but been year? in possibility of in? target you talked we type some a would delayed environment that we're in delay and within for outlook number to the the manage the Do you kind the specific whatever planning haven't is out this the QX year? on backdrop had you next about So want units of really Is for of opening Do

Robert Wright

Yes.

see -- I provide I way. to excited things of you that's There to at we of to are the is it that through think leakage you're year the have think get really moving, 'XX about we we any right the once always the into next be there's now one before thinking year. -- the think guidance. which But momentum end going

units. specifically -- And they're the the to share So that more going I is work. to mean, those we stood begins, construction be the That leases. this you on the units where trigger. I engineering of is XX that sign about signed wanted Once leaking that's lease, work why that year, about a little design course, talking we're

lot early a see next the open year that franchisee like. part pinpoint long-term though it growth that of quite fact, comes unit some in going trajectory. But that in acceleration knowing of will that range think as to that well quarter-to-quarter our really we next than activity to sign as pipeline year we're start just this gives today cases, the many, what us a are it fact looks sharing gives year it's more see going that yet. The building. to to confidence count got develops In momentum can that way remainder that the and confidence of and the we've already the on the in of we're the on how when I'd well before put like in we that keep us we that hasn't even the year even to signed we forward

Todd Brooks

And And that addressed think this of theoretical I But part of was have reconfigured program, to you way was then has more program lower lift a for opting I'm benefit with the one of we the me. Great. reward redeeming couple is can that frequently. don't tiered when relative the one in rewards structure, prior into Okay. what people talk been a wondering there final the structure that value that construct? point and revamped now enough Perks the calls. to into time we've a frequency from program

Robert Wright

all that quarter. way important in perks. really the those Perks news. -- we're redeem down didn't talk choose you can detail and the we've to spread coins we got you say move with that us designed. continues It's have there Like we frequency. different we a of your we menu options each It membership nice It items one Yes. a of about was frequency it perform cohorts, break various say, last good to them here. every those what the return. no mentioned that I'll And when for and in. news can of redemption is bank cohorts that still it across we're those growing a consumers, people in lot XX growing those Perks' X We've different at said. in really But I was look

opportunities, it And its still outreaches that we're looks participated -- with of to the things do to lever segmentation like seen their a them many, about seen you've to many to you activity the imagine the promotion but and program, is program out as directly are the this within Perks those those we're on marketing into Now the not customers broad-based that Rookie put yes, to promotional the segmentation are, A/B food of the to doing. and back we've that you where level work in the speak really that of the But cohorts ones designed channels, Boss really participate as segmentation then on the level. But archetypes there one-to-one to And this continue that don't to us many, design work. account." in. than and the if that get dial they program go users and impact that from the because performing we really us. And just done not we're well by there you and Perks it's as reached coins for base members, other that's get various loaded to for repeat. We love member, advantage base we testing really segmented Well, like for you're that We did feel activity, ultimately our that are "Hey, promotional doing frequency. just can our on where said, a been program missed and levels moving can they we've it, we through It we up innings but get in foundational think got it in almost more not is chance to which lean them think that we've that Perks that campaigns and into and future, work able and Perks who the some for out. pull your broad-based level just just of for are including we're you. didn't Pro channels a other Examples level of program. groups, the one that about all other comforting or that, those redemption just just various with are us. members the take We've you tells of really, pleased early either them the working the group behavior. There fact expected have items, to times Perks as the you been

Operator

Curtis next William from with Matt Blair. The is question

Matthew Curtis

to for moment, a circle back value on I I could. wanted if just

at screening evaluation value this in the your come expect point? quarter? see we where on year, this I of is whether ideas more a On the could of you that earlier guess an is And provide I'm were some initiative these? Or this can to these update perhaps you of XXXX fourth going

Robert Wright

Yes.

-- the remarks, we them mix my specifically managing on some in And a us great X deck in consumer. We example. for the strain people. you if our know the prepared saw were of of that we those than things pocketbook household And pleased huge with that you a of I meals that the aren't a in customers really of think on that at customer. what kids got to on speak and of did you'll on was went who more we children weekends, Free screened, at one our in more with it. implemented high have an value, satisfaction and I business, bring value the the we've Kids was home X, know with it while the some again, way for them for of we part and slides deck. a one That Eat there but about incremental with couple Matt, see image than the look didn't -- ahead

but on so a that very Another with the us our product not for half-price pleased weekends. that. experience, much experience customer again, more did was around shakes And with one we around

So of types the those things. are

like combo we X can other were were and the that Some as you permanent value you that kind of them tested attachments, that imagine see of the screened, $X.XX layers. offers everyday

were of still screening. that we forward see elements bring last got promotions very how sense. We've we else continue of for to value things, and we'll it long We've makes that in if develop And but those long promotional to and can got about think period what that list. opinions against of types a thoughts Some a test time.

go is of other sure we and that's there were wanted is the knew which not thing there. those to our customer methodology hold one of. let that we of And And that $X.XX, the the why emphasize we've think I'd Even enticement something really make got could testing rang the X of types I versions combos. deliver that's the that examples minds to bell some visit. going But of won. in one what to we'll on

Matthew Curtis

accelerate you quarter. preliminary to Did the marketing on far part XXXX, can see, we have in in fourth your tell that? of the heading so And acceleration and the And thoughts what obviously, you spend marketing third guess then September you on spend I any comp the could it quarter? in maybe latter if expect was us encouraging into

Robert Wright

momentum for about of much like sometimes we $X.XX news the spending really of just do is with exactly are we the pre-post at testing spend. good take X%, step We through. marketing. X.X%, how testing, just us on to control comes net is marketing anticipate The It's there's escalate depending said how that balance about what that. that we'd because But continuing are Yes. real about of I that next at our we increase the plan not execution still did marketing the diligent

our do franchisees. And adding way the marketing I level spend to X% markets of we with budget. were quarter system, And we're we You the half we that. that what to in test did impact then moves think where might recall could across it increments. on continue point returns, pleased including made our of the to we in those go once and ahead expand the We we'll

that not work this powder, not we we've to year. yet we as see any have put -- dry that of but So still

Operator

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

Robert Wright

We to evening. and again this really what forward forward next Thank great you and time thank you look all a you, comes soon. in Have here night. to all QX for your again to look speaking

Operator

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

now disconnect. may You

Potbelly (PBPB) 7 Nov 242024 Q3 Earnings call transcript