Potbelly (PBPB) Stock Forecast & Price Target

Potbelly Corp has demonstrated significant potential for growth with projections indicating double-digit franchisee-driven unit growth in FY26 and beyond, driven by recent menu innovations and an increase in franchise partnerships. The strategic acquisition by RaceTrac at a premium of 31% to the previous closing price signifies robust market confidence in Potbelly's brand momentum and operational performance. Additionally, the company's pathway toward fulfilling an eventual 2,000-unit opportunity in the U.S. enhances its long-term scalability and competitive positioning within the limited-service restaurant sector.

The financial outlook for Potbelly Corp appears negative due to a confluence of factors affecting consumer spending, including recessionary pressures, declining consumer confidence, and rising utility and gasoline prices, which could result in lower traffic and sales. Additionally, the potential for renewed government restrictions related to public health could further impact in-store traffic and profitability, despite some mitigation from off-premises consumption. Lastly, the company's growth ambitions of over 10% annually may be jeopardized by construction delays and the timing of new openings, leading to diminished investor confidence in achieving these goals.