Sweetgreen(US:SG)2024-02-28 16:00Financial 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].