Page 1

POTBELLY SANDWICH SHOP Potbelly Corporation Reports Results for First Fiscal Quarter 2021 Sales momentum accelerated throughout the first quarter due to benefits of the Company's strategic initiatives , operational improvements , and ongoing recovery in the macro - economic environment Shop - level profitability achieved ahead of expectations Company continues to position itself for a strong second half and reiterates its path to enterprise profitability during 2021 - Chicago , IL . May 6 , 2021 – Potbelly Corporation ( NASDAQ : PBPB ) , the iconic neighborhood sandwich shop concept , today reported financial results for the first fiscal quarter ended March 28 , 2021 . First Quarter Strategic Successes : Same - store sales trends continued to show sequential improvement , ending the first quarter at ( 3.1 % ) , compared to ( 19.7 % ) in the fourth quarter of 2020 , with notable strong performance in the final weeks of the quarter . Continued to advance the ‘ Traffic - Driven Profitability ' strategic plan with significant activity and momentum across its strategic initiatives . • Returned to profitability at the shop level for the quarter and ahead of previous forecast . • Continued to drive momentum in Potbelly Perks loyalty program , adding 132,000 new members during the quarter , with Perks sales increasing 11 % on a year - over - year basis . Subsequent to quarter's end , appointed Scott Swayne as the Company's Chief People Officer . Key highlights for the thirteen weeks ended March 28 , 2021 compared to December 27 , 2020 : • Total revenues increased by 4.3 % to $ 78.1 million compared to $ 74.9 million . • • GAAP net loss attributable to Potbelly Corporation was ( $ 14.5 ) million , compared to a GAAP net loss of ( $ 16.4 ) million . GAAP diluted loss per share was ( $ 0.56 ) compared to a GAAP diluted loss per share of ( $ 0.68 ) . Adjusted net loss¹ attributable to Potbelly Corporation was ( $ 8.5 ) million compared to an adjusted net loss of ( $ 13.7 ) million . Adjusted diluted EPS¹ was a loss of ( $ 0.33 ) compared to an adjusted diluted EPS loss of ( $ 0.57 ) . • EBITDA improved to ( $ 10.0 ) million from ( $ 11.3 ) million . • Adjusted EBITDA¹ improved slightly to ( $ 6.6 ) million compared to ( $ 6.9 ) million . • Company paid $ 3.5 million of $ 11.3 million of 2020 deferred cash payments in the quarter . Based on the progress made during the first quarter , the Company expects to be cash flow positive by the end of the third quarter , ahead of plan . Successful execution of $ 16 million private placement and amendment of credit facility during the quarter , coupled with improving cash flow dynamics , solidifies liquidity position . 1