Sandwich chain Potbelly Corp estimated second-quarter revenue and profit below analysts expectations, hurt by lower-than-expected comparable store sales and higher expenses, mostly for advertisements.
Potbelly's shares fell 16 percent to $12.35 in extended trading on Wednesday after the company also cut its full-year profit and comparable store sales forecast.
Potbelly estimated a 1.6 percent dip in company-operated comparable store sales in the quarter ended June 29. While the comparable store sales improved through the quarter, the company said sales still fell short of its expectations.
The company estimated adjusted attributable net income of 6 cents per share on revenue of $83.6 million for the quarter.
Analysts on average were expecting profit of 12 cents per share on revenue of $86.7 million, according to Thomson Reuters I/B/E/S.
The company said it expects 2014 adjusted attributable net income of 18-21 cents per share, with flat to a low single-digit percentage fall in comparable store sales.
Potbelly said in May it expected 2014 adjusted net income to be 25-35 percent higher than 2013 income of 34 cents per share. It had forecast a low single-digit percentage rise in comparable store sales growth.
Since it went public in October last year, Potbelly's shares have more than halved to close at $14.65 on Wednesday.
(Reporting by Abhirup Roy in Bangalore; Editing by Savio D'Souza)