Sweetgreen's Stock Jumps 23% As Sales Rise

11/19/2024 12:40:18 AM

(MENAFN- Baystreet) Sweetgreen's (SG) stock is up 23% after the restaurant chain that specializes in salads reported strong sales for this year's second quarter.

The Los Angeles, California-based company reported revenue of $184.6 million U.S., which was up 21% from a year earlier and ahead of Wall Street forecasts that called for $180.8 million U.S.

Sweetgreen, which held its initial public offering (IPO) in November 2021, opened four new restaurants during the quarter.

Management said that same-store sales rose 9% during Q2 of this year despite a difficult operating environment with consumers reigning in their spending.

The company, which is still not profitable, posted a net loss of $14.5 million U.S. in Q2, with a loss margin of 8%.

That's an improvement from a loss of $27.3 million U.S., representing 18% of sales, a year ago.

In terms of guidance, company executives raised their outlook for the remainder of this year. Sweetgreen now expects annual revenue of $670 million U.S. to $680 million U.S.

That's up from a previous estimate of $660 million U.S. to $675 million U.S.

Same-store sales are expected to grow 5% to 7% this year, up from a previous forecast of 4% to 6% growth.

Prior to today, Sweetgreen's stock had risen 92% over the last 12 months and was trading at $26.25 U.S. per share.

MENAFN19112024000212011056ID1108900070

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.