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Key Takeaways
- Sweetgreen cut its second-quarter losses nearly in half and beat revenue estimates as it added new locations.
- The salad restaurant chain also had a 9% year-over-year gain in same-store sales.
- Sweetgreen raised the low end of its full-year outlook on several financial metrics.
Sweetgreen (SG) shares skyrocketed Friday, a day after the salad restaurant chain slashed its loss, boosted sales, and raised its guidance as it expanded locations.
Sweetgreen posted a second-quarter net loss of $14.5 million, nearly half of what it was a year earlier, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $12.4 million was better than expected. Revenue rose 21% year-over-year to $184.6 million, also more than estimates.
The company attributed the revenue jump primarily to the addition of 36 net new restaurant openings versus the same period in 2023, which contributed $18.2 million. Same-store sales gained 9%, pulling in $13.9 million.
CEO Says ‘Expanding Menu Is Hitting the Mark’
Co-founder and Chief Executive Officer (CEO) Jonathan Neman said Sweetgreen continues to open successful locations across the country, and its “expanding menu is hitting the mark with customers, delivering on craveability, quality and value.”
The firm made several updates to its full-year outlook. It now sees 24 to 26 net new restaurant openings (23 to 27 previously); revenue from $670 million to $680 million ($660 million to $675 million); same-store sales growth of 5% to 7% (4% to 6%); restaurant-level profit margin of 19% to 20% (18.5% to 20%); and adjusted EBITDA of $16 million to $19 million ($10 million to $19 million).
Shares of Sweetgreen jumped 25% to $32.74 as of 10 a.m. ET Friday. They have soared about 190% year-to-date.