Sweetgreen(US:SG)2023-05-04 16:00Financial Performance - Revenue for the thirteen weeks ended March 26, 2023, was $125,062,000, representing a 22% increase from $102,591,000 for the same period in 2022[26] - Net loss for the same period was $33,657,000, compared to a net loss of $49,652,000 in the prior year, indicating a 32% improvement[26] - Total revenue for the thirteen weeks ended March 26, 2023, was $125.1 million, a 22.8% increase from $102.6 million for the same period in 2022[54] - The net loss for the thirteen weeks ended March 26, 2023, was $33,657,000, a 32% improvement from a net loss of $49,652,000 in the same period of 2022[151] - Adjusted EBITDA improved to $(6,694,000) from $(16,976,000) year-over-year, with an Adjusted EBITDA Margin of (5)% compared to (17)%[122] Revenue Breakdown - Revenue from owned digital channels reached $48.3 million, up 10.6% from $43.9 million in the prior year[54] - In-store channel revenue increased to $49.4 million, a 43.4% rise compared to $34.4 million in the same quarter of 2022[54] - Marketplace channel revenue grew to $27.4 million, reflecting a 13.0% increase from $24.2 million year-over-year[54] - Same-store sales increased by 5%, driven by a 3% benefit from menu price increases and a 2% increase from transactions, despite a $1.8 million negative impact from restaurant closures and remodels[152] Restaurant Operations - The company opened 9 net new restaurants during the thirteen weeks ended March 26, 2023, bringing the total to 195 restaurants across 16 states and Washington, D.C.[31] - The company had 19 facilities under construction as of March 26, 2023, all expected to open during fiscal year 2023[62] - Restaurant operating costs totaled $108,125,000 for the thirteen weeks ended March 26, 2023, up from $89,200,000 in the same period of 2022[26] - Restaurant-Level Profit increased to $16,937,000 with a margin of 14%, compared to $13,391,000 and a margin of 13% in the prior year[122] Cash and Liquidity - Cash and cash equivalents at the end of the period were $296,953,000, down from $436,790,000 at the end of the same period in 2022[30] - As of March 26, 2023, the company had cash and cash equivalents of $296.8 million, down from $331.6 million as of December 25, 2022[50] - The company has access to a $44.1 million revolving loan under its 2020 Credit Agreement, with no draws made as of March 26, 2023[187] Expenses and Costs - General and administrative expenses decreased by 30% to $34,907,000 from $50,199,000, primarily due to a $7.9 million decrease in stock-based compensation[162] - Labor and related expenses increased by 14% to $39,243,000, but as a percentage of total revenue, they decreased to 31% from 33%[155] - Other restaurant operating costs increased by 20% to $20,665,000, primarily due to the new restaurant openings and inflationary pressures[160] - Depreciation and amortization expenses increased by 23% to $13,110,000, attributed to the new restaurant openings[165] Market and Economic Conditions - Current macroeconomic conditions and inflation have negatively impacted revenue growth and consumer demand, leading to increased variability in customer traffic patterns[116] - The company has experienced supply chain disruptions, particularly in packaging, which have adversely affected operating costs and margins[117] Stock and Compensation - The company recognized stock-based compensation expense of $0.8 million for both the thirteen weeks ended March 26, 2023, and March 27, 2022, related to the vested portion of shares from the Spyce acquisition[84] - The total stock-based compensation expense for the thirteen weeks ended March 26, 2023, was $14.3 million, a decrease from $22.2 million in the same period of 2022[92] - Unrecognized compensation expense related to unvested stock-based compensation arrangements was $21.6 million, expected to be recognized over a weighted average period of 2.37 years[88] Future Outlook - The company continues to focus on expanding its market presence and enhancing its product offerings, aligning with its mission-driven approach to healthy food[31] - The company is focused on expanding its footprint in both existing and new U.S. markets, with plans for international growth over time[111] - Revenue growth has shown positive momentum, with preliminary results indicating an encouraging start to the second fiscal quarter[109]