Some Highlights from Potbelly's Q4 Earnings Conference Call - Potbelly (NASDAQ:PBPB)

Below are some highlights from Potbelly's

PBPB

Q4 earnings conference call:

An estimate for the impact of more severe weather this year versus a year ago in Q4 is roughly 120 basis points for the quarter and 310 basis points for the month of December.
- Knowing this, the 7.7% comp growth was driven primarily by check growth from our price increase in Q1.
For the year, the company-operated comparable same-store sales were up 1.5%.
The ROI (Return on Investment) for our 2011 class shops is well above the 25% target.
In Q4 of 2013, we determined our deferred tax assets should be measured based on a federal tax rate of 35% .
Long-term growth targets
- Total new shop growth of at least 10%
- Low single-digit comparable shop sales growth
- Annual adjusted EBITDA growth of 20%
- Annual adjusted net income growth of 20% or more
- Return on capital investments of at least 25%.
Q1 model is generally uncertain, but management is optimistic in hitting long term targets (partially offset by weather, but don't let that fact cloud the effects of other factors)
Upcoming expenses originate from moving Potbelly nation folks from the core business to a hub city. It's the training and hiring of folks in those new cities.
- General support: real-estate folks, construction folks.
- Expenses of being a public company
Growth could be driven by building our backline business. We think it's a opportunity that is in early stages, looking forward to 2014.
Looking at potential inflation around dairy, pork and beef, and to some extent, beverages. Per policy, we only increase pricing to cover inflation.
- Modest pricing changes expected
So we were at mid 60% for the managers who live in their neighborhood, its long-term goal is 80% and we're trending towards that.
- Helps with mobilization
- Many can't afford to live near stores (Washington, New York, etc.)

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