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Sweetgreen (SG) This fall 2021 earnings

A Sweetgreen banner on the NYSE, November 18, 2021.

Supply: NYSE

Sweetgreen on Thursday reported widening losses however sturdy fourth-quarter gross sales development and promising efficiency at its eating places in its first quarterly report since its preliminary public providing.

The salad chain additionally issued a powerful gross sales outlook for 2022, though it does not anticipate to show a revenue but.

Shares of the corporate soared 20% in prolonged buying and selling. After a powerful debut on the general public markets in mid-November, the inventory has struggled as buyers query the corporate’s lack of profitability, a rarity for publicly traded eating places.

Sweetgreen shares have shed greater than 50% since debuting on the general public market, dragging its market worth right down to roughly $2.2 billion. The inventory closed Thursday down roughly 11% earlier than spiking in prolonged buying and selling on the again of its outcomes.

The chain reported a fourth-quarter internet lack of $66.2 million, or $1.14 per share, in contrast with a lack of $41.1 million, or $2.49 per share, a yr earlier. The corporate recorded a $21.5 million enhance in stock-based compensation. Sweetgreen additionally mentioned that worth hikes and killing off its loyalty program helped restaurant-level margins, though larger wages and worker bonuses weighed on its backside line.

Internet gross sales rose 63% to $96.4 million, topping expectations of $84.7 million, in line with a survey of analysts by Refinitiv.

The chain reported same-store gross sales development of 36% for the quarter. Within the year-ago interval, the corporate noticed its same-store gross sales shrink by 28% because the pandemic took a toll on demand for its heat bowls and salads.

Many of the credit score for the quarterly leap in same-store gross sales comes from a rise in orders, though the chain additionally reported a 4% profit from worth hikes.

Sweetgreen mentioned 65% of its gross sales got here from digital orders. Whereas spectacular when put next towards the broader restaurant business, that marks a lower for the corporate, as greater than three-quarters of its transactions got here from on-line orders through the year-ago interval.

This quarter, extra prospects opted to order by means of third events like DoorDash and Grubhub, which cost heftier charges for pick-up and supply orders and might dig into Sweetgreen’s margins.

Waiting for the primary quarter, Sweetgreen mentioned it anticipates income of between $100 million and $102 million and same-store gross sales development of 30% to 33%. It is also anticipating adjusted losses earlier than curiosity, taxes, depreciation and amortization of between $18 million and $20 million.

For the complete yr, Sweetgreen anticipates income of $515 million to $535 million and same-store gross sales development of 20% to 26%. Wall Road is anticipating the chain to see internet gross sales of $513.1 million in 2022, although analyst protection on the inventory is gentle.

The corporate expects to see adjusted losses earlier than curiosity, taxes, depreciation and amortization of $33 million to $40 million for 2022. It is also planning on opening at the very least 35 new areas through the yr.

Read the full earnings report here.

That is breaking information. Please verify again for updates.

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