What was the value of Potbelly Sandwich Works' total equity as of December 31, 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | ||
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | $ 11,663 | $ 33,788 |
| Accounts receivable, net of allowances of $22 and $26 as of December 29, 2024 and December 31, | ||
| 2023, respectively | 9,765 | 7,960 |
| Inventories | 3,744 | 3,516 |
| Prepaid expenses and other current assets | 7,882 | 7,828 |
| Assets classified as held-for-sale | 147 | — |
| Total current assets | $ 33,201 | $ 53,092 |
| Property and equipment, net | 50,533 | 45,087 |
| Right-of-use assets for operating leases | 133,207 | 144,390 |
| Indefinite-lived intangible assets | 3,404 | 3,404 |
| Goodwill | 2,049 | 2,056 |
| Restricted cash | 815 | 749 |
| Deferred tax assets | 33,816 | — |
| Deferred expenses, net and other assets | 6,121 | 3,681 |
| Total assets | $ 263,146 | $ 252,460 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable | $ 9,552 | $ 9,927 |
| Accrued expenses | 32,872 | 35,377 |
| Short-term operating lease liabilities | 22,809 | 24,525 |
| Current portion of long-term debt | — | 1,250 |
| Total current liabilities | 65,233 | 71,078 |
| Long-term debt, net of current portion | 4,000 | 19,168 |
| Long-term operating lease liabilities | 127,929 | 142,050 |
| Other long-term liabilities | 8,036 | 6,070 |
| Total liabilities | 205,198 | 238,367 |
| Commitments and contingencies (Note 14) | ||
| Equity | ||
| Common stock, $0.01 par value—authorized 200,000 shares; outstanding 29,893 and 29,364 shares as of | ||
| December 29, 2024 and December 31, 2023, respectively | 398 | 389 |
| Warrants | 1,745 | 2,219 |
| Additional paid-in-capital | 470,085 | 462,583 |
| Treasury stock, held at cost, 10,445 and 10,077 shares as of December 29, 2024, and December 31, | ||
| 2023, respectively | (120,338) | (116,701) |
| Accumulated deficit | (293,503) | (333,797) |
| Total stockholders’ equity | 58,387 | 14,693 |
| Non-controlling interest | (439) | (600) |
| Total equity | 57,948 | 14,093 |
| Total liabilities and equity | $ 263,146 | $ 252,460 |
EXHIBIT B TO SHOP DEVELOPMENT AREA AGREEMENT
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 total equity as of December 31, 2023, was $14,093. This figure represents the net worth of Potbelly Sandwich Works, calculated by subtracting total liabilities from total assets. It includes common stock, warrants, additional paid-in capital, treasury stock, and accumulated deficit, as well as non-controlling interest.
For a prospective franchisee, understanding the equity position of Potbelly Sandwich Works can provide insights into the financial stability and overall health of the company. A higher equity value generally indicates a stronger financial foundation, which can be reassuring for franchisees who are investing in the brand. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive view.
The FDD also lists the total equity as of December 29, 2024, which was $57,948. This shows a significant increase in equity from the previous year. Reviewing these changes over time can help potential franchisees understand the company's financial trajectory and assess the potential risks and rewards associated with investing in a Potbelly Sandwich Works franchise.
It is important for potential franchisees to consult with a financial advisor to fully understand the implications of Potbelly Sandwich Works' equity position and other financial data presented in the FDD. This will help them make an informed decision about whether to invest in a franchise.