Potbelly debut shows Wall Street loves sandwiches
The lunchtime specialist soars in its first day of trading.
The shares were initially priced at $14, but opened at $28.79 and have only climbed from there. Motley Fool analyst Ron Gross doesn't like some of the mechanics of the IPO, but he thinks the starting valuation was very reasonable, which is evidenced by the large pop in the stock's price.
Ron thinks after the pop, shares look a little expensive. He notes Potbelly expects to grow its store count by 10% a year, which is solid growth, so Ron's keeping an eye on Potbelly.
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I do not know where there are "hundreds" of stores....
But the only thing about this IPO that comes to mind....Is "Sandwiches Gone Wild."
130% opening day, C'mon.
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Investors are hoping the chain can emulate the rapid growth of Chipotle Mexican Grill.
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