A Sweetgreen banner on the NYSE, November 18, 2021.
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.
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.
That is breaking information. Please verify again for updates.