Sweetgreen(US:SG)2023-02-22 16:00Financial Performance - The company reported a Restaurant-Level Profit of $235.3 million and Operating Lease Assets of $256.7 million as of December 25, 2022[486]. - Total revenue for the fiscal year ended December 25, 2022, was $470.1 million, representing a 38.3% increase from $339.9 million in the previous year[491]. - Net loss for the fiscal year was $190.4 million, compared to a net loss of $153.2 million in the previous year, reflecting a 24.3% increase in losses[491]. - The company reported a basic and diluted net loss per share of $1.73, compared to $5.51 in the previous year[491]. - The accumulated deficit grew to $671.6 million from $476.2 million, indicating ongoing financial challenges[490]. - The company reported a net loss of $190,441 thousand for the year ending December 26, 2021, compared to a net loss of $153,175 thousand for the previous year, indicating a worsening financial performance[494]. - For the fiscal year ended December 25, 2022, Sweetgreen reported a net loss of $190,441,000, compared to a net loss of $153,175,000 in the previous year, reflecting an increase in losses of approximately 24.3%[495]. Cash and Liquidity - The company had cash and cash equivalents of $331.6 million as of December 25, 2022, down from $472.0 million in the previous year[474]. - Total current assets decreased to $346.1 million from $506.7 million, primarily due to a reduction in cash and cash equivalents from $472.0 million to $331.6 million[490]. - Cash used in operating activities decreased to $43,169,000 in fiscal year 2022 from $64,529,000 in fiscal year 2021, indicating improved cash flow management[495]. - Total cash and cash equivalents at the end of fiscal year 2022 were $331,739,000, down from $472,299,000 at the end of fiscal year 2021, representing a decrease of approximately 29.7%[496]. Operating Costs and Expenses - Restaurant operating costs totaled $400.8 million, up 33.8% from $299.5 million in the prior year, with food, beverage, and packaging costs increasing by 38.9% to $130.1 million[491]. - General and administrative expenses rose to $187.4 million, a 49.9% increase from $125.0 million in the previous year[491]. - The company has implemented cost-cutting measures to mitigate the impact of inflation and rising wage rates on its Restaurant Level Profit[476]. - The company anticipates significant increases in operating expenses as it grows its business and opens new restaurants[34]. Growth and Expansion - The company opened 36 net new restaurants in fiscal year 2022, bringing the total to 186 restaurants across 16 states and Washington, D.C.[498]. - The company’s future growth is significantly dependent on its ability to open new restaurants and secure appropriate sites for expansion[34]. - The company is focusing on expanding its market presence and enhancing operational efficiencies to improve future performance[491]. Market and Economic Conditions - The company experienced supply chain disruptions for key ingredients, such as romaine, arugula, and tomatoes, leading to higher prices in Q4 of fiscal year 2022[473]. - The company’s revenue growth slowed in the latter half of fiscal year 2022, primarily due to macroeconomic conditions and the ongoing effects of the COVID-19 pandemic[476]. - The company is exposed to commodity price risks, which could adversely affect results if menu prices do not increase at the same rate as ingredient costs[472]. Stock and Equity - The total common stock outstanding increased to 111,132,993 shares by December 25, 2022, up from 109,345,697 shares at the end of 2021, indicating growth in equity financing[494]. - The company raised $384,692 thousand through the issuance of common stock in connection with its initial public offering, net of underwriting discounts and issuance costs[493]. - The Company issued and sold 14,950,000 shares of common stock at a price of $28.00 per share during the IPO, resulting in net proceeds of $384.7 million[617]. - The Company issued 6,669,146 shares of preferred stock, raising $108,858 thousand, net of issuance costs, to support its capital structure[493]. Impairment and Restructuring - The Company recorded non-cash impairment charges of $15.0 million for the fiscal year ended December 25, 2022, with $8.8 million related to property and equipment and $6.2 million related to operating lease assets[545]. - The Company evaluated its long-lived assets for impairment due to changing customer behavior trends and macroeconomic conditions, resulting in the need for impairment reviews[544]. - The Company incurred total pre-tax restructuring and related charges of approximately $14.4 million for fiscal year 2022, including a non-cash restructuring expense of $13.0 million[516]. Tax and Regulatory Matters - The Company has a full valuation allowance of $163.8 million against deferred tax assets as of December 25, 2022, reflecting an increase of $36.9 million year over year[657]. - The Company is subject to limitations under Section 382 of the Internal Revenue Code regarding the utilization of net operating loss carryforwards due to ownership changes[659]. - The Inflation Reduction Act of 2022 introduced a Corporate Alternative Minimum Tax (CAMT) that will affect tax years beginning after December 31, 2022, but is not expected to have a material impact on the Company for fiscal year 2022[663].