A Sweetgreen banner on the NYSE, November 18, 2021.
Supply: NYSE
Sweetgreen on Thursday reported widening losses for its first quarter, however gross sales jumped 67% as employees returned to their places of work and resumed their previous lunchtime routines.
Shares of the corporate rose greater than 5% in prolonged buying and selling.
This is what the corporate reported in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by Refinitiv:
- Loss per share: 45 cents vs. 41 cents anticipated
- Income: $102.6 million vs. $101.5 million anticipated
The salad chain reported first-quarter web lack of $49.2 million, or 45 cents per share, wider than its web lack of $30 million, or $1.77 per share, a yr earlier. Analysts surveyed by Refinitiv had been anticipating a loss per share of 41 cents.
Sweetgreen mentioned a $21 million improve in stock-based compensation was the first purpose for its widening losses this quarter. Increased wages and worker bonuses additionally weighed on the corporate’s restaurant-level margins, partially offset by its choice to finish its previous loyalty program.
Web gross sales rose 67% to $102.6 million, beating expectations of $101.5 million. Digital orders accounted for two-thirds of its quarterly income. Greater than 40% of gross sales got here from Sweetgreen’s personal app and web site, somewhat than third events.
Sweetgreen’s same-store gross sales climbed 35% within the quarter, after falling 26% a yr in the past. The chain credited increased buyer transactions and menu value will increase. The corporate has raised costs 10% during the last yr, however executives mentioned that client habits hasn’t shifted in any respect.
Nonetheless, there’s one space the place clients have modified how they purchase Sweetgreen. As employees return to their places of work, the most well-liked day of the week for Sweetgreen purchases has shifted from Monday pre-pandemic to Tuesday, Wednesday and Thursday.
The chain’s common unit volumes, which measures common gross sales per location, elevated to $2.8 million within the quarter. A yr in the past, the metric fell to $2.1 million. This quarter’s common unit volumes surpass pre-pandemic ranges, in keeping with CFO Mitch Reback.
Co-founder and CEO Jonathan Neman touted the profitable take a look at of a brand new loyalty program, referred to as Sweetpass. Clients concerned within the pilot doubled the frequency of their visits and tripled their spending on Sweetgreen’s salads and heat bowls. This system prices $10 a month however provides customers a $3 credit score on each buy value no less than $9.95.
Sweetgreen reiterated its forecast for 2022, predicting income of $515 million to $535 million and same-store gross sales progress of 20% to 26%.It additionally expects to open no less than 35 web new areas.
“We’re seeing nothing not too long ago that might trigger us to alter our steering,” Reback instructed analysts on the convention name.
Different restaurant corporations, akin to Starbucks and Taco Bell proprietor Yum Brands, pulled their outlooks this quarter, citing inflation and situations in choose worldwide markets. Reback mentioned exterior components have precipitated some issues, however the chain’s robust efficiency this quarter led the corporate to reiterate its full-year forecast.
Learn the corporate’s earnings launch here.
