What was the depreciation expense for Potbelly Sandwich Works in 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
n thousands)**
| Fiscal Year | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Cash flows from operating activities: | ||||||
| Net income | $ 41,332 | $ | 5,577 | $ 4,711 | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
| Depreciation expense | 12,669 | 12,138 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the depreciation expense for 2023 was $12,138 thousand. Depreciation expense is a non-cash expense that represents the reduction in value of an asset over time.
For a potential franchisee, understanding the depreciation expense of Potbelly Sandwich Works is crucial for assessing the company's financial health and profitability. While depreciation itself doesn't involve a direct cash outflow, it reflects the capital investments Potbelly Sandwich Works has made in its infrastructure and equipment. Higher depreciation expenses can indicate significant investments in assets, which may correlate with the company's growth and expansion strategies.
It's important to note that this figure is part of the consolidated statements of operations, reflecting the overall financial performance of Potbelly Corporation and its subsidiaries. Franchisees should consider this number in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial standing and how it manages its assets. Reviewing trends in depreciation expense over multiple years, as presented in the document, can also provide insights into Potbelly Sandwich Works's long-term investment strategies and asset management practices.