What were the purchases of property and equipment for Potbelly Sandwich Works in 2024?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| 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's 2025 Franchise Disclosure Document, the company's purchases of property and equipment in 2024 totaled $19,284. This figure reflects the capital expenditures Potbelly Sandwich Works made during the year on items such as leasehold improvements, machinery, equipment, furniture, fixtures, and computer equipment. These investments are essential for maintaining and upgrading the company's infrastructure and operational capabilities.
For a prospective franchisee, understanding these capital expenditure trends can provide insights into Potbelly Sandwich Works's investment strategy and its commitment to maintaining up-to-date facilities. While this data reflects the company's overall spending, individual franchisees should also consider their own potential investments in property and equipment when establishing or upgrading their own Potbelly Sandwich Works locations. These costs can vary based on location, store size, and specific equipment needs.
It's also worth noting that the FDD includes a breakdown of property and equipment, gross, including leasehold improvements ($148,166), machinery and equipment ($47,796), furniture and fixtures ($31,086), computer equipment and software ($43,150), and construction in progress ($1,258) as of December 29, 2024. Reviewing these specific categories can give a franchisee a clearer picture of where Potbelly Sandwich Works is allocating its resources and what types of assets are considered important for the business.