U.S. stock futures were slightly lower this morning, with the Nasdaq futures falling around 0.2% on Friday.Shares of Sweetgreen, Inc. SG fell sharply in today's pre-market trading after the company reported worse-than-expected quarterly financial results.Sweetgreen reported a quarterly loss of 18 cents per share, compared to market expectations for a loss of 16 cents per share. The company reported quarterly sales of $173.400 million which missed the analyst consensus estimate of $175.533 million.Sweetgreen ...

[Glossary](index=4&type=section&id=Glossary) [Key Definitions](index=4&type=section&id=Glossary_Definitions) This section defines key terms, sales channels, and performance metrics including AUV, Same-Store Sales Change, Restaurant-Level Profit, and Adjusted EBITDA - The company defines its 'Comparable Restaurant Base' as all restaurants that have operated for at least twelve full months, excluding those with material temporary closures (no operations for a consecutive 30-day period)[10](index=10&type=chunk) - Sales channels are categorized into five types: In-Store, Marketplace (third-party), Native Delivery (own app/website), Outpost and Catering, and Pick-Up. 'Owned Digital Channels' include Pick-Up, Native Delivery, and Outpost/Catering[11](index=11&type=chunk)[15](index=15&type=chunk) - Key performance metrics include Net New Restaurant Openings, Average Unit Volume (AUV), Same-Store Sales Change, Total Digital Revenue Percentage, and Owned Digital Revenue Percentage. Non-GAAP measures used are Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted EBITDA Margin[17](index=17&type=chunk) [Part I Financial Information](index=6&type=section&id=Part%20I%20Financial%20Information) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Sweetgreen, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the periods ended September 29, 2024 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$858.0 million**, while total liabilities rose to **$394.7 million**, and stockholders' equity decreased to **$463.3 million** due to accumulated deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sept 29, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $234,623 | $257,230 | | Total current assets | $255,304 | $276,111 | | Property and equipment, net | $285,279 | $266,902 | | Total assets | $857,981 | $856,557 | | **Liabilities & Equity** | | | | Total current liabilities | $98,522 | $91,579 | | Total liabilities | $394,677 | $373,960 | | Accumulated deficit | ($846,328) | ($784,985) | | Total stockholders' equity | $463,304 | $482,597 | | **Total liabilities and stockholders' equity** | **$857,981** | **$856,557** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue grew **20%** to **$515.9 million** for the thirty-nine weeks ended September 29, 2024, with net loss improving to **$(61.3) million** or **$(0.54) per share** Statement of Operations Summary (in thousands, except per share data) | Metric | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Revenue | $515,922 | $431,015 | | Total restaurant operating costs | $410,925 | $353,876 | | Loss from operations | $(64,274) | $(93,055) | | Net loss | $(61,343) | $(85,970) | | Net loss per share | $(0.54) | $(0.77) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$37.3 million**, while net cash used in investing activities decreased to **$(63.2) million**, resulting in a **$20.1 million** decrease in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $37,271 | $17,556 | | Net cash used in investing activities | $(63,199) | $(79,372) | | Net cash provided by financing activities | $5,836 | $4,945 | | **Net decrease in cash** | **$(20,092)** | **$(56,871)** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, fair value measurements, and lease obligations, noting **236** restaurants operated and **15** Net New Restaurant Openings year-to-date - As of September 29, 2024, the company owned and operated **236** restaurants in 22 states and Washington, D.C. It had **5** Net New Restaurant Openings in Q3 2024 and **15** year-to-date[28](index=28&type=chunk) Revenue by Channel (in thousands) | Channel | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Owned Digital Channels | $158,727 | $161,347 | | In-Store Channel (Non-Digital) | $224,540 | $177,205 | | Marketplace Channel | $132,655 | $92,463 | | **Total Revenue** | **$515,922** | **$431,015** | - The fair value of the contingent consideration liability related to the Spyce acquisition increased to **$13.6 million** as of September 29, 2024, from **$8.4 million** at year-end 2023[39](index=39&type=chunk)[42](index=42&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth, a **7%** same-store sales increase, improved profitability with narrowed net loss, positive Adjusted EBITDA, and liquidity [Factors Affecting Our Business](index=27&type=section&id=MD%26A_Factors_Affecting_Business) Business performance is influenced by restaurant footprint expansion, macroeconomic conditions, seasonality, and sales channel mix, particularly the impact of delivery fees on margins - Expanding the restaurant footprint is a key driver of revenue growth. The company had **15** Net New Restaurant Openings in the first thirty-nine weeks of 2024, bringing the total to **236** restaurants[91](index=91&type=chunk) - Macroeconomic conditions and inflation pose risks, as consumers may reduce spending on premium fast-casual options. While the company has historically offset cost increases with price adjustments, future increases could negatively impact sales[93](index=93&type=chunk)[94](index=94&type=chunk) - Revenue is subject to seasonality, typically lower in Q1 and Q4. The sales channel mix also affects profitability, as delivery channels (Native and Marketplace) incur third-party fees that can negatively impact margins[97](index=97&type=chunk)[98](index=98&type=chunk) [Key Performance Metrics and Non-GAAP Financial Measures](index=28&type=section&id=MD%26A_Key_Metrics) Key performance metrics include a **7%** Same-Store Sales Change and **$2.9 million** AUV, with non-GAAP measures showing **$105.0 million** Restaurant-Level Profit and **$19.3 million** Adjusted EBITDA Key Performance Metrics | Metric | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Net New Restaurant Openings | 15 | 34 | | Average Unit Volume (AUV) | $2,907k | $2,905k | | Same-Store Sales Change (%) | 7% | 4% | | Total Digital Revenue Percentage | 56% | 59% | | Owned Digital Revenue Percentage | 31% | 37% | Reconciliation to Restaurant-Level Profit (in thousands) | Metric | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Loss from operations | $(64,274) | $(93,055) | | **Restaurant-Level Profit** | **$104,997** | **$77,139** | | Restaurant-Level Profit Margin | 20% | 18% | Reconciliation to Adjusted EBITDA (in thousands) | Metric | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Net loss | $(61,343) | $(85,970) | | **Adjusted EBITDA** | **$19,281** | **$(946)** | | Adjusted EBITDA Margin | 4% | 0% | [Results of Operations](index=36&type=section&id=MD%26A_Results_of_Operations) Revenue increased **20%** to **$515.9 million** driven by new restaurants and a **7%** same-store sales increase, leading to a narrowed net loss of **$(61.3) million** Revenue Performance | Metric | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Revenue | $515,922k | $431,015k | | Same-Store Sales Change | 7% | 4% | - The increase in revenue for the 39-week period was primarily due to **$51.7 million** from **50** Net New Restaurant Openings and **$28.9 million** from a **7%** increase in Comparable Restaurant Base revenue[135](index=135&type=chunk)[136](index=136&type=chunk) - Labor and related expenses decreased to **28%** of revenue from **29%** in the prior year period, driven by higher revenue, improved labor optimization, and a **$1.8 million** ERC benefit, which offset wage rate increases[140](index=140&type=chunk)[141](index=141&type=chunk)[143](index=143&type=chunk) - Pre-opening costs decreased by **48%** to **$4.3 million** due to opening only **15** new restaurants in the period compared to **37** in the prior-year period[156](index=156&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company holds **$234.6 million** in cash and equivalents and a **$43.1 million** revolving credit facility, with cash from operations increasing to **$37.3 million** and investing activities decreasing to **$(63.2) million** - The company holds **$234.6 million** in cash and cash equivalents and has access to a **$43.1 million** revolver, which management believes is sufficient for the next 12 months[170](index=170&type=chunk) Cash Flow Summary (in thousands) | Activity | Thirty-nine weeks ended Sep 29, 2024 | Thirty-nine weeks ended Sep 24, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $37,271 | $17,556 | | Net cash used in investing activities | $(63,199) | $(79,372) | | Net cash provided by financing activities | $5,836 | $4,945 | - The **$16.2 million** decrease in cash used for investing activities was primarily due to lower capital expenditures on property and equipment, reflecting **15** gross new restaurant openings in the period versus **37** in the prior year[180](index=180&type=chunk)[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposure have occurred since December 31, 2023, with primary risks remaining commodity prices, interest rates, inflation, and macroeconomic factors - There have been no material changes to the company's market risk exposure, which includes commodity prices, interest rates, inflation, and macroeconomic risks[185](index=185&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 29, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[186](index=186&type=chunk)[187](index=187&type=chunk) - There were no material changes to the company's internal control over financial reporting during the fiscal quarter ended September 29, 2024[189](index=189&type=chunk) [Part II Other Information](index=51&type=section&id=Part%20II%20Other%20Information) [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings, which management does not expect to materially affect its financial position or operations - The company does not expect that the resolution of any current legal proceedings will have a material effect on its financial position, operations, or capital resources[191](index=191&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been reported to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the 2023 Annual Report on Form 10-K[192](index=192&type=chunk) [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) A director and the CFO adopted Rule 10b5-1 trading plans for the potential sale of Class A common stock during the last fiscal quarter - Director Julie Bornstein and CFO Mitch Reback adopted Rule 10b5-1 trading plans for the sale of company securities[193](index=193&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, officer certifications, and XBRL data files - The filing includes officer certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act and Inline XBRL documents[195](index=195&type=chunk)

Sweetgreen, Inc. (SG) came out with a quarterly loss of $0.18 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.50%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced a loss of $0.13, delivering a surprise of -18.18%.Over the last four quarters, the company has not bee ...

The name Sweetgreen comes from froyo (frozen yogurt) and salad -- sweet green.Nicolas Jammet is the co-founder and chief concept officer of Sweetgreen, a health-minded fast-casual restaurant chain with more than 200 locations. In this podcast, Jammet joined Motley Fool host Mary Long for a conversation about:The future of automation and eating.Creating an "Apple-like" retail experience at a restaurant.Sweetgreen's balance between value and growing to become profitable.To catch full episodes of all The Motle ...

The market expects Sweetgreen, Inc. (SG) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be re ...

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Subscribers to Chart of the Week received this commentary on Sunday, October 6. Small cap stocks were a feel-good story back in the summer, a feather in the cap of a resilient economy. The Russell 2000 Index (RUT) was reclaiming $2,000 and looking to make a run at 2021's record highs near $2,400. The RUT, moving in lockstep with the S&P 500 up the charts, was even more noteworthy given how sensitive small caps are to sticky inflation data and the high interest-rate environment Wall Street was in just three ...

Sweetgreen (SG, Financial) has been rewarding investors with significant gains, recently hitting a new 52- week high. The stock has been on an upward trend since early March, and with its Q3 earnings report approaching, here's a detailed look at its recent performance and future prospects. Sweetgreen has consistently seen its stock rise post-earnings for the past three quarters. The Q3 results are expected in early November. In Q2, Sweetgreen reported a larger-than-expected loss, but investors focused on th ...

Sweetgreen, Inc. (SG) has set foot in North Carolina for the very first time, announcing its debut restaurant in the Uptown Charlotte location. The new location is expected to accommodate up to 42 diners inside and 26 diners on the restaurant's patio. SG stock dipped 1.4% during the trading hours but inched up 0.1% in the after-hours on Monday. More About Sweetgreen's New Location Following the latest menu launch of three limited-time-only menu items, this 2,479-square-foot restaurant in the Charlotte locat ...