Sweetgreen Inc (NYSE:SG) is near the top of the New York Stock Exchange (NYSE) today, last seen up 22.1% to trade at $32.09. While the health-centric, fast-casual restaurant reported a steeper-than-expected second-quarter loss, a revenue beat and increased same-store sales outlook is fueling the upside today. In response, four brokerages hiked their price targets, the highest coming from Oppenheimer to $36 from $34. The stock is no stranger to outsized post-earnings moves, gapping higher 34% after in May an ...

Sweetgreen, Inc. (NYSE:SG) Q2 2024 Earnings Call August 8, 2024 5:00 PM ET Company Participants Rebecca Nounou - Investor Relations Jonathan Neman - Co-Founder and Chief Executive Officer Mitch Reback - Chief Financial Officer Conference Call Participants Sharon Zackfia - William Blair Katherine Griffin - Bank of America Brian Mullan - Piper Sandler Logan Reich - RBC Capital Markets Jon Tower - Citi Brian Bittner - Oppenheimer & Co. Andrew Charles - TD Cowen Christine Cho - Goldman Sachs Brian Harbour - Mor ...

Revenue Performance - Revenue for the thirteen weeks ended June 30, 2024, was $184,641 thousand, compared to $152,525 thousand for the same period in 2023, representing a year-over-year increase of 21%[16] - Revenue for the twenty-six weeks ended June 30, 2024, was $342,491,000, an increase of $64,904,000 or 23% from $277,587,000 in the prior year[124] - The in-store channel revenue for the thirteen weeks ended June 30, 2024, was $81.760 million, up from $63.202 million in the prior year, marking a 29% increase[31] - The marketplace channel revenue increased to $46.533 million for the thirteen weeks ended June 30, 2024, compared to $32.698 million in the same period last year, reflecting a growth of 42%[31] - Same-store sales increased by 9% for the thirteen weeks ended June 30, 2024, compared to 3% for the same period in 2023, driven by a 5% benefit from menu price increases and a 4% increase due to traffic and favorable product mix[125] Cost and Expenses - Total restaurant operating costs for the thirteen weeks ended June 30, 2024, were $143,122 thousand, up from $121,436 thousand in the same period last year, reflecting an 18% increase[16] - Labor and related expenses for the thirteen weeks ended June 30, 2024, were $49,668,000, a 14% increase from $43,513,000 in the same period last year[130] - Food, beverage, and packaging costs for the thirteen weeks ended June 30, 2024, were $49,883,000, a 22% increase from $40,992,000 in the prior year, remaining at 27% of total revenue[128] - General and administrative expenses were $39,202 for the thirteen weeks ended June 30, 2024, slightly down from $40,350 in the prior year[101] - Occupancy and related expenses for the thirteen weeks ended June 30, 2024, increased to $15,021,000, an 11% rise from $13,526,000 for the same period in 2023, primarily due to 36 net new restaurant openings[134] Profit and Loss - Net loss for the thirteen weeks ended June 30, 2024, was $14,460 thousand, compared to a net loss of $27,258 thousand for the same period in 2023, indicating a 47% improvement in losses[16] - Loss from operations for the thirteen weeks ended June 30, 2024, was $16,184, compared to a loss of $31,246 for the same period in 2023, representing a 48.3% improvement[101] - Adjusted EBITDA for the thirteen weeks ended June 30, 2024, was $12,357, significantly up from $3,269 in the same period last year, marking a 277.5% increase[103] - The net loss margin improved to (8)% for the thirteen weeks ended June 30, 2024, compared to (18)% for the same period in 2023[103] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were $244,583 thousand, a decrease from $257,230 thousand as of December 31, 2023[15] - Cash flows from operating activities provided $22,542 thousand for the twenty-six weeks ended June 30, 2024, compared to $4,821 thousand for the same period in 2023, indicating a significant increase[23] - The company reported a net decrease in cash and cash equivalents of $12.2 million for the twenty-six weeks ended June 30, 2024[158] - The company’s liquidity and capital requirements are primarily for new restaurant development and initiatives to improve customer experience[153] Restaurant Expansion - The company opened 10 net new restaurants during the twenty-six weeks ended June 30, 2024, bringing the total to 231 restaurants across 20 states and Washington, D.C.[25] - The company had 13 facilities under construction as of June 30, 2024, compared to 7 facilities as of December 31, 2023, indicating expansion efforts[40] - The company opened 10 new restaurants during the twenty-six weeks ended June 30, 2024, with property and equipment purchases totaling $32.7 million[161] Stock and Compensation - The company reported a weighted average of 113,580,674 shares used in computing net loss per share for the thirteen weeks ended June 30, 2024[16] - Stock-based compensation expense decreased to $20,529 thousand for the twenty-six weeks ended June 30, 2024, from $28,667 thousand in the same period of 2023, reflecting a 28.5% reduction[23] - The company has $22.4 million in unrecognized compensation expense related to unvested stock-based compensation arrangements, expected to be recognized over a weighted average period of 2.14 years[65] Future Outlook - The company expects revenue to increase as it focuses on opening additional restaurants and expanding its menu offerings[104] - Labor and related expenses are anticipated to grow in line with revenue increases, influenced by minimum wage legislation and labor market conditions[109] - The company plans to increase investments in its Owned Digital Channels to attract new customers and enhance order frequency[105] - Pre-opening costs are expected to rise in fiscal year 2025 as the company accelerates its new restaurant growth rate[114]

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 June 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 releas ...

Investors should also take note of any recent adjustments to analyst estimates for Sweetgreen, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual ...

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Robot chefs Nevertheless, that operating margin spread is too wide to ignore. Sweetgreen management aims to open seven new Infinite Kitchen-equipped restaurants this year and retrofit three or four existing outlets with the system. That'll cost a pretty penny, sure, but the company's wallet is relatively fat. At the end of the aforementioned quarter it held nearly $244 million in cash in its coffers, and the machines clearly have vast, bottom-line-lifting potential. The improvements should continue. The com ...

The fast-casual salad chain was up thanks to a bullish note from an analyst. Shares of fast-casual salad chain Sweetgreen (SG 4.26%) were moving higher today as the company got a bullish note from a Wall Street analyst. The stock was up 4.5% at 1:50 p.m. ET. Sweetgreen stock could be a buy heading into its earnings report Oppenheimer analyst Brian Bittner weighed in on Sweetgreen this morning, calling the restaurant stock a top pick heading into its second-quarter earnings report on Aug. 8. A recent pullbac ...

During its testing phase in Boston, the Caramelized Garlic Steak quickly became a dinner-time favorite. In fact, 20% of all dinner orders included steak. The market test was an unbridled success as it started to roll out steak across all its restaurants. In 2021, Sweetgreen acquired Spyce, a restaurant that uses automated robots designed by MIT engineers to prepare lunch bowls. This acquisition was seen as a stepping stone for future restaurant concepts leading up to its IPO. Projected Earnings Growth Growi ...

Can either of these stocks become the next big restaurant chain and create shareholder value? If you enjoy a good fast-casual meal, you might have already sampled the Mediterranean-style offerings at Cava Group (CAVA)'s restaurants or the healthy-oriented fare at Sweetgreen (SG 1.38%). You might even have a favorite dish, but which of these hot stocks is the better buy? Healthy and growing Cava and Sweetgreen operate similar models. Both are small but growing restaurant chains with the fast-casual model and ...