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10/2025100%

Potbelly Corporation acquired by Racetrac

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $500M–1.5bn

Context

RaceTrac completed the acquisition of Potbelly Corporation on October 2025. The purchase gives RaceTrac full control of Potbelly’s 445+ sandwich shops, its franchise‑development pipeline, and its proven franchisee‑partner network, while RaceTrac pledges to preserve the Potbelly brand and its operational model. The integration is designed to capture synergies across real‑estate selection, franchising best practices, food innovation, operations and marketing, with Potbelly adding a fast‑casual, made‑to‑order foodservice platform to RaceTrac’s convenience and fuel network and reinforcing the group’s move toward more frequent, higher‑ticket food‑driven visits. Adam Noyes, formerly COO of Potbelly, was appointed President of the Potbelly brand under RaceTrac, while CEO Bob Wright remained in place through the end of 2025 to ensure continuity. The transaction was financed through RaceTrac’s balance sheet and debt facilities, with BofA Securities and Kilpatrick Townsend & Stockton advising on the buy‑side and Piper Sandler and Kirkland & Ellis on the sell‑side, marking a significant expansion of RaceTrac’s consumer‑facing portfolio and signaling continued consolidation at the intersection of convenience retail and fast‑casual dining.

Potbelly Corporation, which reported an EBITDA margin of [members only] in 2024, is valued in this transaction at an EV/EBITDA multiple of 15x–25x.

-> Deep-dive in Retail & Consumer market trends

Target

Potbelly Corporation is a U.S. fast‑casual restaurant chain operating a network of neighborhood sandwich shops known for warm, toasty sandwiches, signature salads, and hand‑dipped milkshakes, founded in 1977 in Chicago. The brand has grown from a single shop into a nationwide chain with more than 445 company‑owned and franchise‑owned locations across the United States, including over 100 franchised sites, and a long‑term ambition to reach 2,000 shops. Potbelly differentiates itself through a “Fresh, Fast & Friendly” service ethos, an in‑store experience tailored to each local neighborhood, and a menu built around customizable, made‑to‑order food that leans toward homestyle comfort and indulgence rather than pure health‑focus. The chain has strong unit economics, with about 76% of its locations exceeding $1 million in annual unit volume by 2024, reflecting solid traffic, ticket size, and brand pull in suburban and urban trade areas.

Ent. Value

$500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

15x–25x

EV / EBIT

Above 20x

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2024
$250–500M
$25–50M
$5–25M
2023
$250–500M
$25–50M
$5–25M

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REFERENCES

Valuation range: EV $500M–1.5bn

Revenue range: $250–500M

EBITDA range: $25–50M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 15x - 25x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Potbelly Corporation by Racetrac are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: potbelly corporation

FAQ

What transaction does this page cover?

This page covers Racetrac’s acquisition of 100% of Potbelly Corporation, an American company specialised in Hospitality, in 2025.

How was the acquisition of Potbelly Corporation by Racetrac valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $500M–1.5bn band, its EV/EBITDA multiple within the 15x - 25x range, and its EV/revenue multiple within the 1x - 3x range. Exact figures are available to members.

What were Potbelly Corporation’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Potbelly Corporation generated annual revenue estimated in the $250–500M range and EBITDA in the $25–50M bracket (FY 2024). Detailed financial figures are available to members.

What sources support the information on this transaction?

Data on this transaction was compiled from the official corporate announcement published by the parties, combined with independent reporting from specialized financial and M&A publications.

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