Potbelly Corporation PBPB is scheduled to report second-quarter 2018 results on Aug 7, after the market closes.We expect the company’s top line in the second quarter to be favored by net unit growth, whereas other sales-building efforts and a greater focus on franchising are expected to have favored earnings growth.Notably, shares of Potbelly have gained 10.9% in the past year, outperforming the industry’s collective growth of 3.2%.Let’s delve deeper into the factors that have likely shaped up the company’s earnings and revenues in the to-be-reported quarter.Unit Growth & Sales Building Efforts to Drive Top LineThe Zacks Consensus Estimate for revenues for the to-be-reported quarter is pegged at $112.9 million, reflecting an increase of 4.4% from the year-ago actual figure. Moreover, in the last-reported quarter, total revenues increased 1% year over year. The upside trend is likely to have continued in the second quarter as well.We expect net unit growth to contribute significantly to the anticipated top-line surge. The company is focusing on moderating company-operated unit growth while accelerating franchised unit improvement. Subsequently, the consensus estimate for the number of franchised units at the end of the second quarter stands at 60, reflecting year-over-year growth of 11.1%. The number of company-operated units is anticipated to be up 17.9%. The Zacks Consensus Estimate for the same is pegged at 500.Apart from net unit growth, various sales-boosting initiatives such as improved digital innovation, distinguished menu offerings, and advertising and marketing strategies are likely to contribute toward the anticipated top-line growth.Franchising to Favor EarningsDespite increased expenses related to the unit development and sales-building efforts, Potbelly’s second-quarter earnings are expected to have gained from the increased franchise initiatives. The consensus estimate pegs second-quarter earnings at 13 cents, reflecting 18.2% growth from the year-ago quarter. We note that refranchising a large portion of the system reduces the company’s capital requirements and facilitates earnings per share growth. Moreover, with a major portion of a business getting franchised, Potbelly will be less affected by food inflation than most of its peers.Our Model Doesn’t Suggest a BeatPlease note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Stocks with a Zacks Rank #4 or 5 (Sell-rated) are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Potbelly currently has a Zacks Rank #4 and an Earnings ESP of -4.00%, a combination that reduces the likelihood of an earnings beat.Potbelly Corporation Price and EPS Surprise Potbelly Corporation Price and EPS Surprise | Potbelly Corporation QuoteStocks to ConsiderHere are some companies in the restaurant space, which, per our model, have the right combination of elements to post an earnings beat in the to-be-reported quarter.Jack in the Box JACK has an Earnings ESP of +0.88% and it currently carries a Zacks Rank #3. The company is scheduled to report quarterly results on Aug 8.Brinker EAT, with a Zacks Rank #3, has an Earnings ESP of +2.03%. The company is expected to report quarterly results on Aug 9.Dave & Buster’s PLAY has an Earnings ESP of +10.72% and it presently carries a Zacks Rank #2. The company is anticipated to report quarterly results on Sep 4.Looking for Stocks With Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jack In The Box Inc. (JACK): Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY): Free Stock Analysis Report Brinker International, Inc. (EAT): Free Stock Analysis Report Potbelly Corporation (PBPB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research