Potbelly Shares Surge 120% in Market Debut Potbelly more than doubled during its first day of trading, securing a spot as one of the top IPO debuts of 2013.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

chowtimes.com

Potbelly, a Chicago-based sandwich franchise, surged nearly 120 percent in its first day as a publicly-traded company, securing a spot as one of the top IPO debuts of 2013.

The stock was priced at $14 a share but quickly jumped to $28.79 at Friday's open. Shares reached an intraday high of $33.78 before ending the day at $30.68, up 119.8 percent.

Potbelly isn't the first casual restaurant chain to harness IPO debut success this year. Noodles & Co., which went public in June, saw its stock surge 104 percent in its first trading day. Shares of Noodles are currently at $43.46, trading 141 percent above their IPO price.

The chain, known for its toasted sandwiches and freshly baked cookies, has expanded rapidly in recent years. Potbelly opened its 300th store in 2013, with a domestic base of 295. In the last year, total shop growth was 16 percent. The company reports that it plans to grow the number of Potbelly shops at least 10 percent annually in the long term. Potbelly reported total revenue in 2012 of more than $274 million, a 15% increase from 2011, according to regulatory filings.

Potbelly started offering franchise opportunities in 2010. However, the vast majority of its restaurants are company-owned. Franchisees operate six shops in the United States and 12 shops in the Middle East. The company stated in its offering documents that it doesn't expect franchise revenue to be significant in the near future – right now franchise royalties and fee represent less than 1 percent of total revenue – but Potbelly says it plans to grow that in the long term.

The sandwich chain began in a small antique store in Chicago in 1977. In 1996, Bryan Keil bought the shop from the original owner and began to swiftly expand. By 2005, the chain comprised of 100 shops, reaching 200 by 2008. Keil now serves as a director of the company. Former Sears Holdings chief executive Aylwin Lewis runs the company as CEO.

Related: Sandwich Chain Potbelly Files for $82.5 Million IPO

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'My Brain Thrives on Variety': His Side Hustle Inspired By 'The 4-Hour Workweek' Led to $600,000 in 16 Months

Mark Hellweg, 42, knows what it takes to start a business "with a fraction of the capital."

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Social Media

How to Turn Social Media Moments Into Newsworthy Stories That Captivate Audiences

How a simple TikTok of a baker kneading sourdough at 30,000 feet sparked global headlines, social media debates and a lesson in viral storytelling.

Growing a Business

Stop Selling Services — How MSPs Can Build Brands That Clients Can't Resist

In 2025, the managed service provider landscape is more competitive than ever. To stand out, MSPs must shift from selling technical services to building magnetic brands rooted in trust, value and differentiation.

Science & Technology

AI Isn't the CEO — Why Human Judgment Still Rules in Business Decisions

AI is transforming business operations, but human oversight remains essential for strategic decision-making. Here's how to strike the right balance between automation and human input.