The most recent trading session ended with Sweetgreen, Inc. (SG) standing at $33, reflecting a +0.79% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.The company's stock has dropped by 8.75% in the past month, falling short of the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31%.The investment community will be closely monitoring the performance of Sweet ...

Investment Thesis - Sweetgreen (NYSE: SG) is reiterated with a buy rating due to new evidence suggesting potential for accelerated growth despite a recent drop in share price [1] Analyst Background - The analyst is an individual investor with a diverse investing background, including fundamental, technical, and momentum investing approaches [1] - The analyst uses Seeking Alpha as a platform to track investment ideas and connect with like-minded investors [1] Disclosure - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2] - Seeking Alpha's disclosure states that past performance is no guarantee of future results and no investment advice is being given [3] - Seeking Alpha analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body [3]

Performance Overview - Sweetgreen Inc (NYSE: SG) significantly outperformed the broader market in 2024, delivering a return of over 14% compared to the S&P 500's 8% return [1] Market Comparison - The company's stock performance has been strong, with a notable 14% return since the last article, surpassing the S&P 500's 8% return [1] Analyst Position - The analyst holds a beneficial long position in Sweetgreen through stock ownership, options, or other derivatives [2]

When we think of value stocks, a high-flying restaurant chain that has seen its share price triple year-to-date hardly comes to mind. And yet at the same time, I believe Sweetgreen (NYSE: SG ) to be undervalued.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha si ...

When searching for buying opportunities, investors might immediately look at stocks that have crushed the market and are putting up exceptional recent returns. One particular business has done just that. So far in 2024, this monster restaurant stock has skyrocketed 236%, substantially outperforming the broader S&P 500 by an incredibly wide margin. Does this strong momentum mean the company should be in your portfolio right now? Here's what investors need to know.Healthy eatingI'm not talking about Chipotle ...

Sweetgreen (NYSE: SG ) is not just another fast-casual salad chain. The recent launch of Caramelized Garlic Steak was just the beginning of a series of innovations 'outside the bowl' that are I'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. ...

For the most part so far in the Q3 earnings season, winning “bandwagon” stocks have continued their rallies fiercely after releasing earnings, especially on news of a beat-and-raise. The fast-casual salad chain Sweetgreen (NYSE: SG ), however, was a notable holdout, with theWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the indus ...

Financial Data and Key Metrics - Q3 2024 revenue was $173 4 million, up 13% YoY [7] - Same-store sales grew 6%, with 4% from menu price increases and 2% from positive traffic and mix [8] - Restaurant-level margin expanded by over 100 basis points to 20 2% [9] - Adjusted EBITDA for the quarter was $6 8 million [9] - Net loss improved to $20 8 million from $25 1 million in Q3 2023 [34] - Year-to-date adjusted EBITDA was $19 3 million, compared to a $1 million loss in the same period last year [35] - Cash balance at the end of Q3 was $235 million, with positive operating cash flow of $37 million for the first nine months of 2024 [36] Business Line Data and Key Metrics - Five new restaurants were opened in Q3, bringing the total to 236 [7] - Three of the new restaurants are powered by the Infinite Kitchen [10] - The Infinite Kitchen has led to a 700 basis point labor savings at the Penn Plaza location [16] - Turnover for Infinite Kitchen locations was lower than the fleet average in September [16] - The company plans to open at least 40 new restaurants in fiscal 2025, with approximately half powered by the Infinite Kitchen [13] Market Data and Key Metrics - Emerging markets, including the Midwest, Texas, and the Southeast, saw double-digit same-store sales growth [8] - The average unit volume (AUV) in Q3 was $2 9 million [29] - The Penn Plaza Infinite Kitchen retrofit has resulted in faster order fulfillment and increased guest frequency [15] Company Strategy and Industry Competition - The company is focused on broadening its menu beyond salads, with new protein plates and seasonal offerings driving dinner and weekend sales [18] - Sweetgreen is testing new menu items like ripple fries and exploring opportunities in desserts and handheld options [20] - The company is rolling out an AI-driven labor scheduling system to improve team member experience and operational efficiency [23] - Sweetgreen aims to redefine fast food through a focus on culinary and technology innovation, with a goal of 15% to 20% unit growth annually [38] Management Commentary on Operating Environment and Future Outlook - Management highlighted the success of the Infinite Kitchen in improving guest experience and operational efficiency [14] - The company is optimistic about the potential for menu innovation and digital sales growth, particularly with the upcoming loyalty program launch in 2025 [16] - Sweetgreen raised its 2024 guidance, expecting revenue between $675 million and $680 million, same-store sales growth of 6% to 7%, and adjusted EBITDA of $18 million to $20 million [37] Other Important Information - The company is retrofitting two high-volume restaurants, Willis Tower in Chicago and Wall Street in New York, with the Infinite Kitchen, expected to be completed by the end of Q4 2024 [17] - Sweetgreen is simplifying back-of-house operations to reduce complexity and improve throughput [21] - The company is investing in leadership training and career development for team members, with a focus on promoting from within [25] Q&A Session Summary Question: Brand awareness and broadening appeal - Sweetgreen is focused on expanding its menu to attract a wider demographic, with protein plates and new menu items driving dinner and weekend sales [42][43][44] - The company is testing ripple fries and exploring opportunities in desserts and handheld options [46][47] Question: In-store productivity improvements - Sweetgreen is simplifying prep processes and reducing operational complexity to create room for menu innovation [49][50] - The company expects iterative improvements in prep, quality, and labor savings [52] Question: Same-store sales trends and marketing approach - September was the strongest month in Q3, with momentum carrying into October [55] - Sweetgreen is evolving its marketing approach, focusing on a full-funnel strategy and community engagement [56][57] Question: Infinite Kitchen retrofits - The company is prioritizing retrofits based on AUVs and labor market challenges [61][62] - Labor savings from Infinite Kitchen retrofits are expected to improve over time [63] Question: AUVs at Infinite Kitchen stores - Sweetgreen expects AUVs to grow over time at Infinite Kitchen locations due to faster throughput and higher customer satisfaction [66][67] Question: Labor optimization and inflation - Labor optimization has driven year-over-year favorability, with further improvements expected from AI scheduling tools [69][70] - Food and labor inflation was approximately 2% in Q3 [70] Question: Reinvesting labor savings - Near-term labor savings from Infinite Kitchen will drop to the company's margin [75] - The new AI labor tool aims to improve both customer and team member experience [76][77] Question: Menu expansion and operational complexity - Sweetgreen is focused on simplifying operations to make room for new menu items [78][79] Question: Same-store sales in mature markets - The company does not break out same-store sales by market but reported a 6% comp overall [83] Question: Cost of Infinite Kitchen retrofits - Retrofits typically take six to seven weeks, with costs varying by store [85] Question: Impact of steak on COGS - Steak has a higher COGS but did not significantly impact overall COGS in Q3 [86] Question: Infinite Kitchen manufacturing costs - Sweetgreen expects to see manufacturing cost savings as it scales Infinite Kitchen production [88][89] Question: Sales trends in September and October - Sales accelerated in September and October, driven by seasonal menu items and emerging markets [93][95] Question: New unit economics - Infinite Kitchen units have higher build-out costs but offer a 700 basis point margin improvement [97] Question: Margin expansion outlook - Sweetgreen is not providing 2025 margin guidance at this time but expects to do so in the next earnings call [103]

Key TakeawaysSweetgreen reported a wider-than-expected loss for the third quarter as costs rose.The company spent more as it expanded its locations, and also faced higher labor expenses.Shares tumbled Friday, though even with Friday's drop, they've more than tripled in value since the start of the year. Shares of Sweetgreen (SG) tumbled in Friday afternoon trading after the salad restaurant chain reported a wider-than-anticipated loss as costs rose. Sweetgreen posted a third-quarter loss of 18 cents per sh ...

Sweetgreen, Inc. (SG) reported third-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.SG’s Q3 Earnings & Revenue DiscussionIn the fiscal third quarter, Sweetgreen recorded an adjusted loss per share of 18 cents, wider than the Zacks Consensus Estimate of a loss of 16 cents. The company reported an adjusted loss per share of 22 cent ...