NEW YORK (AP) — Shares of Potbelly jumped almost 12 percent in premarket trading on Wednesday as the restaurant operator's third-quarter adjusted profit and revenue beat Wall Street's expectations.
On Tuesday, Potbelly Corp. reported an adjusted profit of 15 cents per share on revenue of $78 million. Analysts surveyed by FactSet predicted earnings of 9 cents per share on revenue of $77.9 million.
Sharon Zackfia of William Blair said in a client note that Potbelly's performance also topped her earnings forecast, which was the same as that of the analysts FactSet polled.
Zackfia said she expected investors would react well to the better-than-expected quarterly results, particularly since the stock dropped approximately 10 percent over the last two weeks.
The analyst said she continues to like the company's long-term expansion prospects, but considers its near-term reward potential limited partly because of modest traffic declines.
Zackfia maintained a "Market Perform" rating.
Potbelly's stock climbed $3.19, or 11.8 percent, to $30.25 in premarket trading about an hour before that market open.