David Nierenberg, a notable ten percent owner, has increased his stake in Potbelly Corp (NASDAQ:PBPB) with recent purchases of common stock. According to a recent SEC filing, Nierenberg acquired a total of 7,600 shares on January 7, 2025, at prices ranging from $9.23 to $9.24 per share. This transaction amounts to a total investment of $70,149. The stock, currently trading at $9.07, appears slightly overvalued according to InvestingPro's Fair Value model, though analysts maintain price targets between $14-$16. Following these transactions, Nierenberg now directly owns 101,998 shares of the company.
The filing also highlights the broader holdings managed by Nierenberg Investment Management Company, Inc., which includes shares held indirectly through various funds. However, the latest transactions reflect direct acquisitions by Nierenberg himself.
In other recent news, Potbelly Corporation announced significant financial developments. The company reported a 1% increase in system-wide sales, reaching approximately $139.2 million, and a substantial 79% surge in franchise revenue to $4.4 million during its Third Quarter 2024 Earnings Call. Revenues also rose, hitting $115.1 million. The company's adjusted EBITDA grew 19% year-over-year to $8.7 million, and a net income of $3.7 million was declared.
Potbelly also revealed a change in its certifying accountant, appointing KPMG LLP as the new independent registered public accounting firm for the fiscal year ending December 27, 2025, following a competitive selection process. This transition will occur after the issuance of an audit report on Potbelly's consolidated financial statements for the fiscal year ended December 29, 2024, by the outgoing auditor, Deloitte & Touche LLP.
These are among the recent developments for Potbelly, which continues its strategic growth in a challenging consumer environment. The company's focus on digital sales, which now constitute over 38% of total shop sales, and the opening of new shops were key factors in this growth. Analysts from various firms have provided their projections and expectations for the company's future performance.
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