What was the income tax benefit/expense for Potbelly Sandwich Works in 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
xes as a result of the following:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| U.S. federal statutory tax | 21.0% | 21.0% | 21.0% |
| Computed "expected" tax expense | $ 1,635 | $ 1,266 | $ 981 |
| Increase (reduction) resulting from: | |||
| Change in valuation allowance | (35,269) | (1,526) | 2,280 |
| Minority interest | (218) | 96 | 77 |
| Permanent differences | 1,477 | 805 | (1,755) |
| State and local income taxes, net of federal income tax effect | 295 | 793 | (287) |
| FICA and other tax credits | (487) | (297) | (559) |
| Equity compensation | (815) | 159 | (43) |
| Tax rate changes and other | (163) | (387) | (367) |
| Income tax (benefit) expe |
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 income tax expense for 2023 was $909 thousand, or $909,000. This figure is part of the consolidated statements of operations for Potbelly Corporation and its subsidiaries. The document provides a detailed breakdown of the factors contributing to this income tax expense.
The FDD outlines various elements that influenced the income tax expense, including the U.S. federal statutory tax rate of 21.0%, which remained consistent from 2022 through 2024. Other factors that impacted the income tax include changes in valuation allowance, minority interest, permanent differences, state and local income taxes, FICA and other tax credits, equity compensation, and tax rate changes. These elements are used to compute the final income tax benefit or expense.
Prospective franchisees should understand how these figures play into the overall financial health of Potbelly Sandwich Works. Reviewing these financial statements can provide insight into the company's profitability and tax strategies. It is important to note that these figures are in thousands, so careful attention to the units is necessary when analyzing the data. Consulting with a financial advisor is recommended to fully understand the implications of these figures.