Will Potbelly Join the Pantheon of Great American Restaurant Chains?
Potbelly Corp. — a growing chain of sandwich shops — recently filed paperwork with the Securities and Exchange Commission that showed it was raising its public offering price from a range between $9 and $11 per share to a range between $12 and $13 per share. All told, the company is planning on selling about 7.5 million shares of common stock (about 7.35 million in the offering plus 146,442 from current stockholders). The offering is expected top raise $75 million.
For the uninitiated, Potbelly actually began as an antique shop that began serving food to customers who came during lunchtime to peruse the shop. But, as is often the case with stories like this, the food turned out to be a hit and soon became the main attraction. After about 20 years of operating independently in Chicago, the store was bought by founding Chairman and former CEO Bryant Keil, who began aggressively expanding the business.
Come the end of 2012 and the operation claimed close to 300 stores, $274 million in revenue, $8 million in income from operations, and pro forma basic earnings per share of $1.03.