Traders Salivate Ahead of Expected Potbelly IPO -- (PBPB) (NDLS)

October 3, 2013 10:09 AM EDT Send to a Friend
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Potbelly (Nasdaq: PBPB) is the talk of the town Thursday heading into the company's expected IPO date.

Nasdaq data has Potbelly -- the vendor of voluminous victuals -- looking to sell 7.5 million of its common shares on October 4th. The company said it expects a price of $12 to $13 per share for total value of the offering at $112.125 million (with greenshoe).

Potbelly will have 28,006,535 shares outstanding following the offering for potential market cap of about $365 million.

Key financial points from Potbelly's S-1 filing:
  • As of June 30, 2013, we had a domestic base of 286 shops in 18 states and the District of Columbia. Of these, the company operates 280 shops and franchisees operate six shops. In addition, there are 12 franchised shops in the Middle East. Total shop growth was 16.0% over the prior year;

  • We achieved positive comparable store sales growth in twelve of the last thirteen quarters through our fiscal quarter ended June 30, 2013 (comparable store sales growth reflects the change in year-over-year sales of shops open for 15 or more months);

  • From 2011 to 2012, we increased our total revenue 15.5% to $274.9 million, our adjusted EBITDA 17.6% to $31.5 million, and our net income for the year ended December 30, 2012 to $7.1 million, excluding a $16.9 million non-cash tax benefit as a result of releasing a valuation allowance against our deferred tax assets; and

  • From 2008 to 2012, we increased our shop-level profit margin by 520 basis points to 20.7% (shop-level profit margin measures net shop sales less shop operating expenses as a percentage of net shop sales).
Traders might be keeping an eye on the offering giving the surge of peer Noodles & Company (Nasdaq: NDLS) following its IPO in June. After pricing 5.4 million shares at $18 (above the expected range), the stock opened at $32 and is now trading at the $43 price level. Click here to see Noodles & Company's first day going public.

For the most recent amended S-1 made by Potbelly, click here.


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