Sweetgreen, Inc., a mission-driven restaurant and lifestyle brand dedicated to serving healthy food at scale, has released its financial results for the second fiscal quarter ending June 30, 2024.
Second Quarter 2024 Financial Highlights:
- Total Revenue: $184.6 million, up 21% from $152.5 million in the same period last year.
- Same-Store Sales Growth: Increased by 9%, compared to 3% in the previous year.
- Average Unit Volume (AUV): $2.9 million, consistent with the prior year.
- Digital Revenue: 56% of total revenue, with Owned Digital Revenue at 31%, compared to 59% and 37%, respectively, in the previous year.
- Loss from Operations: $(16.2) million, improving from $(31.2) million, with a margin of (9)% versus (20)%.
- Restaurant-Level Profit: $41.5 million, with a margin of 22%, compared to $31.1 million and a 20% margin last year.
- Net Loss: $(14.5) million, a significant improvement from $(27.3) million, with a margin of (8)% compared to (18)%.
- Adjusted EBITDA: $12.4 million, up from $3.3 million, with a margin of 7% compared to 2%.
Jonathan Neman, Co-Founder and CEO, stated: “We’re thrilled with the progress made in the second quarter, marked by a 9% same-store sales growth and a 22.5% restaurant-level margin. Our innovation and operational excellence are resonating with customers, as seen in the success of our new Caramelized Garlic Steak. I’m grateful for our team’s dedication, which has driven these impressive results.”
Mitch Reback, CFO, added: “Our robust revenue growth of 21% and strong Adjusted EBITDA reflect effective margin management and G&A leverage. Despite economic uncertainties, we are raising our 2024 guidance based on our strong performance in the first half of the year.”
Second Quarter 2024 Results:
Revenue increased by 21% to $184.6 million, driven by $18.2 million from 36 new restaurant openings and a $13.9 million boost from a 9% same-store sales increase. This growth included a 5% boost from menu price increases and a 4% increase from traffic and product mix.
Loss from operations improved to (9)% compared to (20)% in the prior year. The Restaurant-Level Profit Margin rose to 22% due to higher same-store sales, labor optimization, and reduced occupancy rates, though partially offset by higher protein costs and staffing expenses.
General and administrative expenses were $39.2 million (21% of revenue), down from $40.4 million (26% of revenue) in the previous year. This decrease was due to reduced stock-based compensation and increased marketing investment.
Net loss decreased to $(14.5) million from $(27.3) million, attributed to higher Restaurant-Level Profit and lower restructuring and pre-opening expenses. The reduction in general and administrative expenses was partly offset by increased depreciation and amortization.
Adjusted EBITDA improved to $12.4 million from $3.3 million, driven by higher Restaurant-Level Profit and lower pre-opening and administrative expenses.
Fiscal Year 2024 Outlook:
Sweetgreen is updating its financial guidance for 2024 based on strong first-half results:
- Net New Restaurant Openings: 24-26
- Revenue: $670 million to $680 million
- Same-Store Sales Growth: 5-7%
- Restaurant-Level Profit Margin: 19%-20%
- Adjusted EBITDA: $16 million to $19 million
Due to potential variability in reconciling items, the company has not provided reconciliations for Restaurant-Level Profit Margin and Adjusted EBITDA to their most directly comparable GAAP measures.
