Revenue Performance - Revenue for the thirteen weeks ended March 31, 2024, was $157,850,000, representing a 26.2% increase from $125,062,000 for the same period in 2023[25]. - Total revenue for the thirteen weeks ended March 31, 2024, was $157.85 million, a 26.2% increase from $125.06 million for the same period in 2023[41]. - Owned digital channels revenue increased to $51.81 million, up 7.1% from $48.26 million year-over-year[41]. - In-store channel revenue rose to $64.93 million, a 31.5% increase compared to $49.39 million in the prior year[41]. - Marketplace channel revenue grew significantly to $41.11 million, up 50% from $27.41 million in the same quarter last year[41]. - The company recognized $664,000 in revenue from gift card liability during the thirteen weeks ended March 31, 2024, compared to $325,000 in the same period of 2023[42]. Net Loss and Profitability - The net loss for the thirteen weeks ended March 31, 2024, was $26,067,000, compared to a net loss of $33,657,000 for the same period in 2023, indicating a 22.5% improvement[25]. - The company reported a net loss of $26.067 million for the thirteen weeks ended March 31, 2024, compared to a net loss of $33.657 million for the same period in 2023, representing a 22.5% improvement[89]. - Restaurant-Level Profit for the thirteen weeks ended March 31, 2024, was $28,537,000, compared to $16,937,000 in the prior year[123]. - Adjusted EBITDA for the same period was $113,000, a significant improvement from a loss of $6,694,000 in the previous year[127]. - The loss from operations margin improved to (17)% from (28)% year-over-year[123]. Restaurant Expansion - The company opened 6 net new restaurants during the thirteen weeks ended March 31, 2024, bringing the total to 227 restaurants across 19 states and Washington, D.C.[31]. - For the thirteen weeks ended March 31, 2024, net new restaurant openings were 6, down from 9 in the same period of 2023[112]. - The company plans to return to a new restaurant growth rate of 15-20% per year starting in fiscal year 2025[114]. - The company had 9 facilities under construction as of March 31, 2024, all expected to open during fiscal year 2024[50]. Financial Position - Total current assets decreased to $263,688,000 as of March 31, 2024, from $276,111,000 as of December 31, 2023, a decline of 4.5%[24]. - Total liabilities decreased slightly to $372,424,000 as of March 31, 2024, from $373,960,000 as of December 31, 2023[24]. - Cash and cash equivalents at the end of the period were $243,881,000, down from $296,953,000 at the end of the same period in 2023, reflecting a decrease of 17.9%[29]. - Cash and cash equivalents as of March 31, 2024, were $243.76 million, down from $257.23 million as of December 31, 2023[39]. - As of March 31, 2024, the company had $243.8 million in cash and cash equivalents, down from $257.2 million at the end of 2023[174]. - The company has access to a $43.1 million revolving loan under its 2020 Credit Agreement, with no draws made as of March 31, 2024[174]. Operating Expenses - Food, beverage, and packaging costs increased to $43,718,000, a 23% rise from $35,587,000, maintaining 28% of total revenue[152]. - Labor and related expenses rose to $45,766,000, a 17% increase from $39,243,000, decreasing as a percentage of revenue from 31% to 29%[154]. - Occupancy and related expenses increased to $14,448,000, a 14% rise from $12,630,000, with a decrease in percentage of revenue from 10% to 9%[156]. - Other restaurant operating costs increased to $25,381,000, a 23% rise from $20,665,000, decreasing as a percentage of revenue from 17% to 16%[158]. - General and administrative expenses were $36,865,000, a 6% increase from $34,907,000[150]. - Depreciation and amortization expenses increased to $16,427,000, a 25% rise from $13,110,000[150]. - Pre-opening costs decreased to $1,432,000, a 57% decline from $3,366,000[150]. - Impairment and closure costs decreased by 17% to $0.16 million, reflecting closure costs related to previously closed restaurants[166]. - Restructuring charges fell by 21% to $0.51 million, associated with the former Sweetgreen Support Center[167]. Stock and Compensation - As of March 31, 2024, the Company had 14,569,140 stock options outstanding, with a weighted average exercise price of $8.63[77]. - The Company recognized stock-based compensation expense of $0.8 million related to the vested portion of shares from the Spyce acquisition for the thirteen weeks ended March 26, 2023[74]. - The weighted-average fair value of options granted during the thirteen weeks ended March 31, 2024, was $7.58, compared to $8.43 for the same period in 2023[78]. - As of March 31, 2024, there was $23.4 million in unrecognized compensation expense related to unvested stock-based compensation arrangements, expected to be recognized over a weighted average period of 2.22 years[79]. - The total stock-based compensation expense for the thirteen weeks ended March 31, 2024 was $9.626 million, a decrease of 32.5% from $14.265 million for the same period in 2023[84]. - Unrecognized compensation expense related to performance stock units (PSUs) was $22.8 million as of March 31, 2024, expected to be recognized over a weighted average period of 1.25 years[82]. Market and Operational Challenges - The company experienced a disruption in packaging supply during the first fiscal quarter of 2023, negatively impacting restaurant operating costs[106]. - Revenue is derived from five sales channels, with historical fluctuations impacting margins, particularly in Native Delivery, Outpost and Catering, and Marketplace Channels[109]. - Company operates solely within the United States, facing market risks including commodity price risks, interest rate risk, inflation effects, and macroeconomic risks[197].

Sweetgreen, Inc. Announces First Quarter 2024 Financial Results LOS ANGELES--(BUSINESS WIRE)-- Sweetgreen, Inc. (NYSE: SG) (the "Company"), the mission-driven, next generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its first fiscal quarter ended March 31, 2024. First quarter 2024 financial highlights For the first quarter of fiscal year 2024, compared to the first quarter of fiscal year 2023: (1) Restaurant-Level Profit, Restaurant-Level Profi ...

Are investors hyped for the wrong "salad stock"?In the first quarter of 2024, restaurant company Sweetgreen (SG -1.15%) was among the stock market's top performers. As of this writing, shares of the salad-centric chain are up 115% year to date and have doubled in only the past month. It's a nice reprieve for shareholders, considering Sweetgreen stock has largely trended downwards since it went public in 2021.Sweetgreen stock started skyrocketing for fundamental reasons, which is good. On Feb. 29, the compan ...

EMS-FORSTER-PRODUCTIONS/DigitalVision via Getty ImagesInvestment overview I give a buy rating for Sweetgreen (NYSE:SG) as I am bullish on the two key growth strategies that management has implemented: Sweetpass and menu innovations. Both of these have seen positive traction so far, and I expect management to continue providing positive updates on these fronts. As SG continues to grow and turn profitable, I expect its valuation to gradually improve to its peers’ level, providing attractive upside. Busine ...

Sweetgreen, Inc. (SG) shares rallied 7.9% in the last trading session to close at $21.37. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 67.8% gain over the past four weeks.Sweetgreen’s rally is buoyed by optimism regarding the company’s strength in menu innovation, supply chain advancements and cutting-edge technology integration. Also, emphasis on strategic initiatives aimed at increasing traffic to drive ...

Shares of Sweetgreen (SG 28.81%) popped Friday morning after the fast-casual salad specialist posted strong results in its fourth-quarter report.The company beat revenue estimates, made progress on the bottom line, and offered first-quarter guidance that was better than the analysts' consensus view. As of noon ET, the stock was up 30.3%. Sweetgreen stock gets more appetizingIn Q4, Sweetgreen's revenue jumped 29% to $153 million. That growth was primarily driven by new restaurant openings, as same-store sale ...

Financial Data and Key Metrics Changes - In 2023, the company reported sales of $584 million, representing a 24% year-over-year growth [5] - Total revenue for Q4 2023 was $153 million, up from $118.6 million in Q4 2022, growing 29% year-over-year [20] - Restaurant-level margin for the fiscal year was 17.5%, with a Q4 margin of 16.2%, a more than 500 basis point improvement from Q4 2022 [21] - Adjusted EBITDA loss for Q4 was $1.8 million, an improvement of $16.1 million from a loss of $17.9 million in Q4 2022 [24] - The company ended the year with a cash balance of $257 million [24] Business Line Data and Key Metrics Changes - The average unit volume in Q4 was $2.9 million, with same-store sales growing 6% year-over-year [42] - Digital sales represented 59% of total fiscal year revenue, with over 60% of those sales coming via the company's own digital channels [34] - The company opened 35 net new restaurants in 2023, including 4 in Q4, and plans to open 23 to 27 new restaurants in 2024 [43][46] Market Data and Key Metrics Changes - The company entered 3 new markets in 2023: Milwaukee, Tampa, and Rhode Island, with positive tracking towards financial targets [35] - The introduction of Protein Plates has positively impacted sales, particularly in new markets such as Texas and the Southeast [37] Company Strategy and Development Direction - The strategic priorities include building the brand through great products and guest experiences, and expanding restaurant operations [6] - The company is focused on traffic-driving initiatives, including culinary innovation and increasing advertising spend in 2024 [16] - The Infinite Kitchen is expected to unlock revenue growth and restaurant-level margin expansion, with a clear path to 20%-plus margins [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, guiding towards adjusted EBITDA profitability and emphasizing disciplined capital-efficient growth [27] - The company anticipates a strong performance in new markets and plans to balance new and existing market growth [68] - Management noted that while Sweetpass has not yet had a significant impact, there is potential for future growth through optimizations [90] Other Important Information - The company launched Protein Plates and two Infinite Kitchens in 2023, contributing to operational improvements and customer satisfaction [19] - The average ticket at locations with the Infinite Kitchen is more than 10% higher than their respective markets [36] Q&A Session Summary Question: What are the sources of margin improvement in 2024? - Management identified three sources: labor schedule optimization, strong performance from new markets, and price leverage [29] Question: What are the costs associated with the Infinite Kitchen? - The cost for the Infinite Kitchen is guided to be between $450,000 and $550,000, with expectations for economies of scale to reduce costs over time [31][47] Question: How did sales trends progress in Q4? - Sales were sluggish in October but improved in November and December, with January impacted by weather but showing signs of recovery [66] Question: What is the balance of new and existing markets for future growth? - The company plans to open three new markets in 2024 while continuing to densify existing markets, aiming for at least 15% unit growth per year [68][70] Question: What are the priorities for the new COO? - The COO will focus on driving transaction growth, reaccelerating the pipeline with great unit economics, and improving margins [80][74]

Sweetgreen, Inc. (SG) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this company would post a loss of $0.19 per share when it actually produced a loss of $0.22, delivering a surprise of -15.79%.Over the last four quarters, the company has surpasse ...

Financial Performance - Total revenue for the fiscal year ended December 31, 2023, was $584,041,000, representing a 24% increase from $470,105,000 in 2022[512]. - Net loss for the fiscal year 2023 was $113,384,000, compared to a net loss of $190,441,000 in 2022, showing a 40% improvement[512]. - The company reported a basic and diluted net loss per share of $1.01 for 2023, compared to $1.73 in 2022[512]. - Cash provided by operating activities was $26.480 million, compared to cash used of $43.169 million in the previous year[515]. - The company incurred stock-based compensation expenses of $49.532 million in 2023, down from $78.736 million in 2022[515]. - The company reported depreciation and amortization expenses of $59.491 million for the fiscal year 2023, an increase from $46.471 million in 2022[515]. - The total number of common shares outstanding as of December 31, 2023, was 112,639,146, with total stockholders' equity of $482.597 million[514]. Cash and Liquidity - The company reported a cash and cash equivalents balance of $257.2 million as of December 31, 2023, down from $331.6 million as of December 25, 2022[495]. - Total current assets decreased to $276,111,000 in 2023 from $346,149,000 in 2022, a decline of 20%[511]. - Cash and cash equivalents decreased to $257,230,000 in 2023 from $331,614,000 in 2022, a drop of 22%[511]. - The company has a revolving credit facility with a borrowing capacity of up to $45 million, with no outstanding balance as of December 31, 2023[626]. Operating Costs and Expenses - Restaurant operating costs totaled $482,121,000 in 2023, up from $400,819,000 in 2022, indicating a 20% increase[512]. - General and administrative expenses decreased to $146,762,000 in 2023 from $187,367,000 in 2022, a reduction of 22%[512]. - Marketing expenses for the fiscal year 2023 were $14.3 million, slightly down from $14.5 million in 2022 but significantly higher than $9.9 million in 2021[577]. Growth and Expansion - The company’s future growth is highly dependent on its ability to open new restaurants, which is subject to unpredictable factors[33]. - The company’s long-term success relies on effectively identifying and securing appropriate sites for new restaurants[33]. - As of December 31, 2023, the company operated 221 restaurants across 18 states and Washington, D.C., with 35 net new restaurant openings in fiscal year 2023[518]. Supply Chain and Commodity Risks - The company experienced supply chain disruptions for key ingredients, such as romaine and tomatoes, due to extreme weather conditions, leading to higher prices for those products[493]. - The company has been experiencing supply chain disruptions for bowls and plates since the beginning of 2023, resulting in the use of alternative packaging solutions[494]. - The company is exposed to commodity price risks, with potential adverse effects on results if ingredient prices increase and menu prices do not adjust accordingly[492]. - The company’s ability to offset inflationary pressures through menu price increases is uncertain, particularly if competitive conditions limit pricing flexibility[496]. Regulatory and Compliance Risks - The company is subject to rapidly changing laws and regulations regarding data privacy and security, which could lead to regulatory actions and negatively impact operations[35]. Tax and Deferred Tax Assets - The company recorded an income tax expense of $0.4 million for the fiscal year ended December 31, 2023[676]. - The total provision for income taxes for the fiscal year ended December 31, 2023, was $379,000, a decrease from $1,345,000 in 2022[677]. - The company recorded a full valuation allowance of $184.9 million against deferred tax assets as of December 31, 2023, an increase of $21.1 million year over year[679]. - As of December 31, 2023, the company had U.S. Federal net operating loss carryforwards of $754.0 million, with $652.1 million eligible for indefinite carryforward[680]. Acquisitions and Investments - The Company acquired 100% of Spyce for approximately $37.5 million, issuing 1,843,493 Class S shares, with $6.8 million classified as post-business combination compensation expense[615]. - The fair value of total assets acquired from Spyce was $51.315 million, including $20.05 million in developed technology and $29.695 million in goodwill[616]. - The company invested $89.672 million in property and equipment during the fiscal year 2023[515]. Stock and Equity - The Company completed its IPO by issuing 14,950,000 shares of common stock at a public price of $28.00 per share, resulting in net proceeds of $384.7 million after deducting underwriting discounts and commissions[642]. - The Company issued 6,669,146 shares of Series J Preferred Stock at a price of $17.10 per share, generating proceeds of $114.0 million net of issuance costs[644]. - The Class B common stock is entitled to 10 votes per share, compared to 1 vote per share for Class A common stock, reflecting a dual-class structure implemented during the IPO[640].

[Sweetgreen, Inc. Announces Fourth Quarter and Fiscal Year 2023 Financial Results](index=1&type=section&id=Sweetgreen%2C%20Inc.%20Announces%20Fourth%20Quarter%20and%20Fiscal%20Year%202023%20Financial%20Results) Sweetgreen reported strong Q4 and FY2023 financial results, showing significant revenue growth and improved profitability [Fourth Quarter 2023 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) In the fourth quarter of 2023, Sweetgreen's total revenue increased by 29% year-over-year to **$153.0 million**, driven by a 6% rise in same-store sales, significantly improving profitability by narrowing its net loss to **$(27.4) million** and increasing its Restaurant-Level Profit Margin to **16%** from 11% Q4 2023 vs. Q4 2022 Key Financial Metrics | Metric | Q4 2023 (Millions USD) | Q4 2022 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $153.0 | $118.6 | +29% | | Same-Store Sales Change | 6% | 4% | +2 p.p. | | Restaurant-Level Profit | $24.8 | $12.8 | +93.8% | | Restaurant-Level Profit Margin | 16% | 11% | +5 p.p. | | Net Loss | $(27.4) | $(49.3) | Improved | | Adjusted EBITDA | $(1.8) | $(17.9) | Improved | - The company opened **1** net new restaurant in Q4 2023, compared to **10** in the same period last year[3](index=3&type=chunk) - Total Digital Revenue Percentage was **58%** and Owned Digital Revenue Percentage was **34%**, down from **61%** and **40%** respectively in the prior year period[3](index=3&type=chunk) [Full Year Fiscal 2023 Financial Highlights](index=1&type=section&id=Full%20Year%20Fiscal%202023%20Financial%20Highlights) For the full fiscal year 2023, total revenue grew by **24%** to **$584.0 million**, with profitability metrics showing substantial improvement as net loss reduced to **$(113.4) million** and Adjusted EBITDA neared breakeven at **$(2.8) million** Fiscal Year 2023 vs. 2022 Key Financial Metrics | Metric | Fiscal Year 2023 (Millions USD) | Fiscal Year 2022 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $584.0 | $470.1 | +24% | | Same-Store Sales Change | 4% | 13% | -9 p.p. | | Restaurant-Level Profit | $101.9 | $69.3 | +47.0% | | Restaurant-Level Profit Margin | 17% | 15% | +2 p.p. | | Net Loss | $(113.4) | $(190.4) | Improved | | Adjusted EBITDA | $(2.8) | $(49.9) | Improved | | Net New Restaurant Openings | 35 | 36 | -1 | - Average Unit Volume (AUV) remained consistent with the prior year at **$2.9 million**[3](index=3&type=chunk) [Management Commentary and Operational Review](index=2&type=section&id=Management%20Commentary%20and%20Operational%20Review) Management highlights strong 2023 performance, driven by operational improvements and strategic initiatives, focusing on future profitability [CEO Commentary and Q4 Performance Details](index=2&type=section&id=CEO%20Commentary%20and%20Q4%20Performance%20Details) Management highlighted 2023 as a strong year of high growth and significant operating leverage, with a **500 basis point** expansion in restaurant-level profit margins, driven by **29%** Q4 revenue growth and a **$6.4 million** reduction in stock-based compensation - CEO Jonathan Neman stated that the company's guidance calls for **Adjusted EBITDA profitability in 2024**, with a focus on menu innovation, restaurant operations, and the Infinite Kitchen to drive traffic[4](index=4&type=chunk) - Q4 2023 revenue growth of **29%** was primarily due to **45** net new restaurant openings since Q4 2022 and a **6%** same-store sales increase[5](index=5&type=chunk) - Restaurant-Level Profit Margin increased by **over 500 basis points** in Q4 2023 versus the prior year, attributed to menu price increases, labor optimization, and improved supply chain sourcing[6](index=6&type=chunk) - General and administrative expense decreased to **23%** of revenue in Q4 2023 from **37%** in Q4 2022, largely due to a **$6.4 million** decrease in stock-based compensation expense[7](index=7&type=chunk) [2024 Outlook](index=2&type=section&id=2024%20Outlook) The company provides its 2024 financial outlook, projecting continued revenue growth and a path to Adjusted EBITDA profitability [Full Year 2024 Outlook](index=2&type=section&id=Full%20Year%202024%20Outlook) For the full fiscal year 2024, Sweetgreen anticipates achieving positive Adjusted EBITDA between **$8 million** and **$15 million**, planning **23-27** net new restaurants and projecting revenue in the range of **$655 million** to **$670 million** Fiscal Year 2024 Guidance | Metric | Guidance Range (Millions USD) | | :--- | :--- | | Net New Restaurant Openings | 23 - 27 | | Revenue | $655 - $670 | | Same-Store Sales Change | 3% - 5% | | Restaurant-Level Profit Margin | 18.0% - 19.5% | | Adjusted EBITDA | $8 - $15 | [First Quarter 2024 Outlook](index=2&type=section&id=First%20Quarter%202024%20Outlook) For the first quarter of 2024, the company forecasts revenue between **$150 million** and **$154 million** and a same-store sales increase of approximately **3%**, with an Adjusted EBITDA loss of **$(2) million** to **$(4) million** expected First Quarter 2024 Guidance | Metric | Guidance Range (Millions USD) | | :--- | :--- | | Net New Restaurant Openings | 5 - 6 | | Revenue | $150 - $154 | | Same-Store Sales Change | ~3% | | Restaurant-Level Profit Margin | 16% - 17% | | Adjusted EBITDA | $(4) - $(2) | [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated financial statements, including operations, balance sheet, and cash flow data [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements of operations for Q4 and fiscal year 2023 show year-over-year revenue growth and significant reductions in operating and net losses, with full-year revenue increasing **24%** to **$584.0 million** and net loss improving to **$(113.4) million** Q4 Statement of Operations Highlights (in thousands) | Account | Q4 2023 (Thousands USD) | Q4 2022 (Thousands USD) | | :--- | :--- | :--- | | Revenue | $153,026 | $118,570 | | Loss from operations | $(29,289) | $(47,711) | | Net loss | $(27,414) | $(49,258) | | Net loss per share | $(0.24) | $(0.44) | Full Year Statement of Operations Highlights (in thousands) | Account | FY 2023 (Thousands USD) | FY 2022 (Thousands USD) | | :--- | :--- | :--- | | Revenue | $584,041 | $470,105 | | Loss from operations | $(122,344) | $(193,337) | | Net loss | $(113,384) | $(190,441) | | Net loss per share | $(1.01) | $(1.73) | [Selected Balance Sheet, Cash Flow and Operating Data](index=9&type=section&id=Selected%20Balance%20Sheet%2C%20Cash%20Flow%20and%20Operating%20Data) As of December 31, 2023, Sweetgreen held **$257.2 million** in cash and cash equivalents, demonstrating a significant turnaround by generating **$26.5 million** in cash from operations in 2023, while key operating metrics like AUV remained stable Selected Balance Sheet Data (in thousands) | Account | Dec 31, 2023 (Thousands USD) | Dec 25, 2022 (Thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $257,230 | $331,614 | | Total assets | $856,557 | $908,935 | | Total liabilities | $373,960 | $367,709 | | Total stockholders' equity | $482,597 | $541,226 | Selected Cash Flow Data (in thousands) | Activity | FY 2023 (Thousands USD) | FY 2022 (Thousands USD) | | :--- | :--- | :--- | | Net cash from operating activities | $26,480 | $(43,169) | | Net cash used in investing activities | $(95,665) | $(102,023) | | Net cash (used in) from financing activities | $(5,199) | $4,632 | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP measures, including Restaurant-Level Profit and Adjusted EBITDA, for a clearer view of core operational performance [Reconciliation of Loss from Operations to Restaurant-Level Profit](index=10&type=section&id=Reconciliation%20of%20Loss%20from%20Operations%20to%20Restaurant-Level%20Profit) This reconciliation adjusts GAAP loss from operations to Restaurant-Level Profit by adding back corporate expenses, showing a substantial increase to **$101.9 million** (**17% margin**) in fiscal year 2023, demonstrating improved store-level profitability Restaurant-Level Profit Reconciliation - Full Year (in thousands) | Line Item | FY 2023 (Thousands USD) | FY 2022 (Thousands USD) | | :--- | :--- | :--- | | Loss from operations | $(122,344) | $(193,337) | | Add back: G&A, D&A, etc. | $224,264 | $262,623 | | **Restaurant-Level Profit** | **$101,920** | **$69,286** | | **Restaurant-Level Profit Margin** | **17%** | **15%** | [Reconciliation of Net Loss to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) This table reconciles GAAP net loss to Adjusted EBITDA by excluding non-cash expenses and other specific items, showing dramatic improvement from a loss of **$(49.9) million** in fiscal 2022 to **$(2.8) million** in fiscal 2023, indicating strong progress towards profitability Adjusted EBITDA Reconciliation - Full Year (in thousands) | Line Item | FY 2023 (Thousands USD) | FY 2022 (Thousands USD) | | :--- | :--- | :--- | | Net loss | $(113,384) | $(190,441) | | Add back: Adjustments* | $110,589 | $140,507 | | **Adjusted EBITDA** | **$(2,795)** | **$(49,934)** | | **Adjusted EBITDA Margin** | **0%** | **(11)%** | *Adjustments include taxes, interest, D&A, stock-based compensation, etc. - The largest adjustment in the reconciliation for FY 2023 was stock-based compensation expense of **$49.5 million**, followed by depreciation and amortization of **$59.5 million**[40](index=40&type=chunk) [Glossary and Definitions](index=4&type=section&id=Glossary%20and%20Definitions) This section defines key performance indicators and non-GAAP financial measures used to evaluate the company's operational and financial performance [Key Performance Indicators and Non-GAAP Measures](index=4&type=section&id=Key%20Performance%20Indicators%20and%20Non-GAAP%20Measures) This section defines key operational metrics like Average Unit Volume (AUV) and Same-Store Sales Change, along with non-GAAP financial measures such as Restaurant-Level Profit and Adjusted EBITDA, explaining their composition and rationale - Key operational metrics are defined, including **Average Unit Volume (AUV)**, **Same-Store Sales Change**, and **Net New Restaurant Openings**[17](index=17&type=chunk) - **Restaurant-Level Profit** is defined as loss from operations adjusted to exclude general and administrative expenses, depreciation and amortization, and other specific costs to measure the profitability of restaurants[18](index=18&type=chunk) - **Adjusted EBITDA** is defined as net loss adjusted for items including interest, taxes, depreciation, amortization, and stock-based compensation to facilitate operating performance comparisons[19](index=19&type=chunk)