Company Overview - Sweetgreen, Inc. (SG) shares increased by 12.8% to $34.98 in the last trading session, with a notable trading volume and a 33.3% gain over the past four weeks [1][2] - The company is expected to report a quarterly loss of $0.12 per share, reflecting a year-over-year improvement of 40%, with revenues projected at $180.2 million, an 18.1% increase from the previous year [4] Financial Performance - The consensus EPS estimate for Sweetgreen has been revised 4.2% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3][4] - The increase in fiscal 2024 outlook, driven by new restaurant openings, favorable menu pricing, and operational excellence, has contributed to bullish investor sentiment [2] Industry Context - Sweetgreen operates within the Zacks Retail - Restaurants industry, which includes other companies like Meritage Hospitality Group Inc. (MHGU), whose stock closed 0.6% lower at $17.40, with a -5.8% return over the past month [5] - Meritage Hospitality Group's EPS estimate remains unchanged at $0.17, representing a year-over-year change of 156.7% [6]

Core Insights - Sweetgreen's stock surged 37% last month following a strong earnings report and the announcement of its expanding robotic kitchen program, Infinite Kitchen [2] - The company reported a 26% increase in revenue for the first quarter, reaching $157.9 million, surpassing estimates of $152 million [3] - Sweetgreen's comparable sales growth was 5%, indicating improved performance at existing stores and revenue growth through expansion [3] Financial Performance - The average unit volume for Sweetgreen's restaurants was $2.9 million, comparable to leading restaurant operators like Chipotle [3] - Adjusted EBITDA was $0.1 million, a significant improvement from a loss of $6.7 million in the same quarter last year [3] - The restaurant-level profit margin increased from 14% to 18%, while the GAAP per-share loss improved from $0.30 to $0.23, although it was worse than the expected loss of $0.16 [3] Future Outlook - Sweetgreen raised its revenue guidance for the year to $660 million to $675 million, up from a previous range of $655 million to $670 million [4] - The company also increased its same-store sales growth guidance from 3%-5% to 4%-6% and raised its restaurant-level profit margin forecast to 18.5%-20% [4] - The fast-casual salad market presents significant growth opportunities for Sweetgreen if it can achieve profitability [4]

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS pro ...

Key PointsSweetgreen is a fast-casual restaurant chain specializing in healthy, sustainable, locally sourced salads and bowls.Sweetgreen posted an adjusted EBITDA of $100,000 in Q1 2024, an improvement from a loss of $6.7 million in the year-ago period.Sweetgreen raised full-year 2024 revenue guidance to $660 million to $675 million, up from $655 to $670 million.5 stocks we like better than SweetgreenFast casual restaurant chain Sweetgreen Inc. NYSE: SG shares catapulted 34% on its Q1 2024 earnings report. ...

Sweetgreen shares surged 35% on Friday after the company topped Wall Street's revenue expectations for the first quarter.The salad chain reported $158 million in revenue, beating the LSEG consensus estimate of $152 million. It is an increase of 26% from the prior-year period, when it reported revenue of $125.1 million.Sweetgreen also raised revenue and adjusted EBITDA guidance for the full year. Shares of the company are up 189% so far in 2024.CEO and co-founder Jonathan Neman said on the earnings call with ...

Key TakeawaysSweetgreen beat revenue estimates and raised its outlook as new restaurants and a boost in menu prices drove up sales.Same-store sales and restaurant-level profit margin also rose.The news sent shares soaring to their highest level in more than two years. Shares of Sweetgreen (SG) skyrocketed over 40% in early trading Friday after the salad restaurant chain posted better-than-expected sales and boosted its guidance as it expanded operations and raised prices. The company reported first-quarter ...

The company is on track for its first full year of adjusted profits.Shares of salad restaurant chain Sweetgreen (SG 38.05%) popped on Friday after the company beat expectations across the board for its first quarter of 2024. As of 10 a.m. ET, Sweetgreen stock was up a stunning 40% and hitting 52-week highs.Sweetgreen starts the year off strongSweetgreen underpromised and overdelivered for its Q1. The company opened six new restaurants during the quarter, and same-store sales increased 5%, as opposed to mana ...

Sweetgreen (NYSE:SG) stock is on the move Friday after getting a price target increase from RBC Capital analysts.This has analysts at RBC Capital increasing their price target for SG stock from $20 per share to $35 per share. That’s a potential 48.5% upside compared to the stock’s prior closing price. It’s also bullish next to the analysts’ consensus price target of $23.13 per share.Investors will also note that the RBC Capital analysts maintained their “outperform” rating for Sweetgreen shares. To put that ...

Sweetgreen, Inc. (SG) reported $157.85 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 26.2%. EPS of -$0.23 for the same period compares to -$0.29 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $152.32 million, representing a surprise of +3.63%. The company delivered an EPS surprise of -9.52%, with the consensus EPS estimate being -$0.21.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $157.9 million, representing a 26% year-over-year growth from $125.1 million in Q1 2023 [90] - Same-store sales grew 5% year-over-year, with a 5% benefit from menu prices and flat traffic mix [60] - Restaurant-level profit for Q1 was $28.5 million, a nearly 70% increase from a year ago, with a restaurant-level margin of 18.1%, expanding over 400 basis points year-over-year [41][62] - Adjusted EBITDA for Q1 was $113,000, an improvement of $6.8 million from Q1 2023 [111] Business Line Data and Key Metrics Changes - The two Infinite Kitchens are tracking to an average unit volume of $2.6 million, with an average first-quarter margin of 28%, 10 points above the fleet average [50][19] - New restaurant openings in Q1 outpaced the existing fleet average in terms of weekly revenue [79] - Food, beverage, and packaging costs were 28% of revenue for the quarter, an 80 basis point improvement year-over-year [94] Market Data and Key Metrics Changes - The Southeast markets collectively grew double-digits as they continue to accelerate their ramp [92] - Digital sales represented 59% of total first-quarter revenue, with 56% of those sales coming via the company's own digital channels [78] Company Strategy and Development Direction - The company plans to open approximately seven new Infinite Kitchen restaurants and retrofit three to four large urban restaurants in 2024 [51] - The strategy includes a focus on menu innovation, with the recent launch of the Caramelized Garlic Steak aimed at broadening the customer base [53][58] - The company aims to return to a growth rate of 15% to 20% new unit growth per year starting in 2025 [52] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter started off slow due to weather but improved significantly by March, averaging about 5% growth [3][4] - The company is optimistic about the second quarter, tracking ahead of guidance and expecting positive results from the state launch and media efforts [4] - Management emphasized the importance of guest experience and operational efficiency as key drivers for future growth [88][97] Other Important Information - The company has seen a 19-point decrease in turnover compared to Q1 2023, stabilizing at the lowest level since before COVID [87] - The company is focused on capturing urban lunchtime demand and improving labor scheduling to enhance customer service [88] Q&A Session Summary Question: Insights on consumer demand and traffic trends - Management acknowledged a slow start in January but noted a significant improvement in traffic by March, with overall positive momentum in the second quarter [2][4] Question: Performance of Infinite Kitchens - Management reported strong performance metrics for Infinite Kitchens, with higher average checks and improved operating model benefits [81][50] Question: Labor pressure and wage increases - Management indicated minimal labor pressure in Q1, with a slight increase in wages due to California's minimum wage law, offset by a price increase [14][15] Question: Future growth and market expansion - Management expressed confidence in the growth potential of new markets and the effectiveness of their adjusted real estate targeting and marketing strategies [71][72]