What was the net cash provided by operating activities for Potbelly Sandwich Works in 2022?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 11,890 |
| Noncash lease expense | 24,317 | 25,814 | 25,792 |
| Deferred income tax | (34,091) | — | 18 |
| Stock-based compensation expense | 5,728 | 5,450 | 3,265 |
| Asset impairment, shop closure and disposal of property and equipment | (136) | 1,058 | 3,651 |
| Loss (gain) on Franchise Growth Acceleration Initiative activities | 462 | (2,202) | — |
| Loss (gain) on extinguishment of debt | 2,376 | 224 | (10,191) |
| Amortization of debt issuance costs | 234 | 482 | 270 |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, net | (1,826) | (1,580) | (387) |
| Inventories | (269) | 177 | (499) |
| Prepaid expenses and other assets | (1,747) | (3,989) | (520) |
| Accounts payable | (622) | (1,025) | 2,239 |
| Operating lease liabilities | (27,887) | (30,721) | (27,984) |
| Accrued expenses and other liabilities | (877) | 8,086 | 221 |
| Net cash provided by operating activities | 19,663 | 19,488 | 12,476 |
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $12,476. This figure represents the cash flow generated from the company's core business operations during that year. It indicates the amount of cash Potbelly Sandwich Works brought in through its day-to-day activities, after accounting for cash expenses related to operations.
For a prospective franchisee, this number provides insight into the financial health and stability of Potbelly Sandwich Works. A positive net cash flow from operating activities suggests that the company is capable of generating sufficient cash to cover its operating expenses and potentially reinvest in the business. This can be reassuring for franchisees who are considering investing in the brand, as it indicates a sustainable business model.
However, it's important to consider this figure in the context of other financial data, such as net income, capital expenditures, and financing activities, to get a comprehensive understanding of Potbelly Sandwich Works's overall financial performance. Additionally, franchisees should compare this figure to previous years and industry benchmarks to assess the company's performance relative to its peers and its own historical performance. Examining trends in cash flow can reveal important insights into the company's growth trajectory and potential risks.