What was the net cash used in investing 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 |
| Cash flows from investing activities: | |||
| Purchases of property and equipment | (19,284) | (17,053) | (8,426) |
| Proceeds from sales of refranchised shops | 373 | 6,282 | — |
| Other investing activities | (171) | — | — |
| Net cash used in investing activities | (19,082) | (10,771) | (8,426) |
| Cash flows from financing activities: | |||
| Borrowings under Revolving Facility | 11,500 | — | — |
| Borrowings under Term Loan | — | 25,000 | — |
| Borrowings under Former Credit Facility | — | 14,600 | 39,050 |
| Repayments under Revolving Facility | (7,500) | — | — |
| Repayments under Term Loan | (22,827) | — | — |
| Repayments under Former Credit Facility | — | (23,150) | (40,350) |
| Principal payments made for Term Loan | — | (2,838) | — |
| Payment of debt issuance costs | (623) | (2,205) | (196) |
| Proceeds from exercise of warrants | 1,309 | 961 | — |
| Employee taxes on certain stock-based payment arrangements | (2,229) | (1,312) | (813) |
| Contributions from non-controlling interest | 303 | — | — |
| Distributions to non-controlling interest | (1,180) | (854) | (475) |
| Treasury Stock repurchase | (1,393) | — | — |
| Net cash (used in) provided by financing activities | (22,640) | 10,202 | (2,784) |
| Net change in cash and cash equivalents | (22,059) | 18,918 | 1,266 |
| Cash and cash equivalents and restricted cash at beginning of period | 34,537 | 15,619 | 14,353 |
| Cash and cash equivalents and restricted cash at end of period | $ 12,478 | $ 34,537 | $ 15,619 |
| Supplemental cash flow information: | |||
| Income taxes paid | 784 | 278 | 139 |
| Interest paid | 715 | 3,483 | 936 |
| Supplemental non-cash investing and financing activities: | |||
| Unpaid liability for purchases of property and equipment | 1,239 | 1,008 | 778 |
| Unpaid liability for employee taxes on certain stock-based payment arrangements | 16 | 13 | 15 |
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the net cash used in investing activities in 2022 was $(8,426). This figure represents the total cash outflow resulting from investments made by Potbelly Sandwich Works during that year.
Specifically, this net cash used in investing activities is calculated from the purchases of property and equipment, proceeds from sales of refranchised shops, and other investing activities. In 2022, Potbelly Sandwich Works' purchases of property and equipment amounted to $(8,426), with no proceeds from sales of refranchised shops or other investing activities reported.
For a prospective franchisee, this indicates the level of investment Potbelly Sandwich Works was making in its own business during that period. While a negative value suggests cash was used for investments, it is essential to consider this within the broader context of the company's financial strategy and overall cash flow.