Potbelly debut shows Wall Street loves sandwiches

The lunchtime specialist soars in its first day of trading.

By Motley Fool Investor Beat Oct 4, 2013 3:49PM
Sandwich slinger Potbelly (PBPB) made its public debut on the markets Friday morning, zooming over 130% after the opening bell.

Potbelly was founded in Chicago in 1977 in a former antique shop. In 1996, the founder sold it to an entrepreneur, Bryant Keil, who grew the company to hundreds of stores before stepping down from the CEO role in 2008. Potbelly's presiding CEO, Aylwin Lewis, has been at the helm ever since.
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. A Potbelly Corp. sandwich & drink cup in Washington, DC, on Friday (© Andrew Harrer/Bloomberg via Getty Images)

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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2Comments
Oct 5, 2013 7:46PM
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Considering the quality/price factor of the local shop, I wouldn't invest in the company.  Subway is still the best dollar value product.
Oct 5, 2013 10:49PM
avatar

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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