Sweetgreen Same Store Sales Jump 35%, Loss Widens
- May 6, 2022
- Scott Peters
Sweetgreen, Inc first quarter sales rose 35% and loss widened 67% on rising corporate expenses. The company reiterated its full-year revenue outlook.
Sweetgreen, Inc reported first quarter 2022 revenues increased 67% to $102 million and net loss expanded to $49.2 million from $30 million a year ago.
Diluted loss per share decreased to 49 cents on 109 million shares from $1.77 a year ago on 17 million shares.
The increase in loss was driven by an increase of $21.0 million stock-based compensation in general and administrative expenses.
Same store sales increased 35% consisted of a 25% increase from transactions and 10% from menu price increases.
Outlook and Guidance
For fiscal year 2022, the salad chain guided revenues between $515 million and $535 million and same store sales change between 20% and 26%.
The company also estimated restaurant level profit margin between 16% and 17% and adjusted operating loss between $40 million and $33 million.
Company and Stock
Sweetgreen, Inc headquartered in Los Angeles, California operates over 140 locations and about 550 pick-up only locations or outposts.
Sweetgreen priced its 13 million shares of public offering at $28 a share in November 2021
Sweetgreen stock had declined 36% in the year-so-far.
"We are encouraged by how the business performed during the first quarter despite Omicron headwinds. AUVs recovered to $2.8 million up from $2.1 million this time last year and now exceed the first quarter of 2019," added CFO, Mitch Reback.
"The path to recovery remains neither linear nor consistent; however, the strength of our brand, product, digital platform and team gives us confidence in reaching our goal of 1,000 restaurants across the United States by the end of the decade. We are well-equipped and keenly focused on building a sustainable business and our path to profitability."