Sweetgreen, Inc. (NYSE: SG), renowned for its mission-driven approach and commitment to offering healthy food on a large scale, has disclosed its financial performance for the first fiscal quarter concluding on March 31, 2024.
Key Financial Highlights for Q1 2024:
- Total revenue amounted to $157.9 million, reflecting a notable 26% increase from $125.1 million recorded in the corresponding period of the previous fiscal year.
- Same-Store Sales Change remained steady at 5%, aligning with the performance of the prior year.
- Average Unit Volume (AUV) held steady at $2.9 million compared to the previous year.
- Total Digital Revenue Percentage stood at 59%, with Owned Digital Revenue Percentage at 33%, showcasing a slight shift from the previous year.
- Loss from operations narrowed to $(26.9) million with a margin of (17)% compared to $(35.3) million and (28)% respectively in the prior year.
- Restaurant-Level Profit surged to $28.5 million with a margin of 18%, exhibiting significant growth from $16.9 million and 14% margin in the prior year.
- Net loss reduced to $(26.1) million with a margin of (17)% from $(33.7) million and (27)% respectively in the prior year.
- Adjusted EBITDA improved to $0.1 million with a margin of 0%, compared to $(6.7) million and (5)% respectively in the prior year.
- The quarter saw the opening of 6 net new restaurants, compared to 9 in the prior year period.
Sweetgreen’s Co-Founder and CEO, Jonathan Neman, expressed satisfaction with the robust performance, highlighting the 26% revenue growth and the expansion of Restaurant-Level Profit Margin to 18%. He attributed the positive Adjusted EBITDA during the typically slower first quarter to the company’s strategic positioning for both immediate success and sustainable long-term growth.
Total revenue for Q1 2024 reached $157.9 million, primarily driven by incremental revenue from 41 Net New Restaurant Openings during or following the first quarter of fiscal 2023. Additionally, menu price adjustments implemented after the prior year contributed to a 5% increase in Same-Store Sales Change.
Operational margins improved significantly, with the loss from operations decreasing to (17)% compared to (28)% in the prior year, and Restaurant-Level Profit Margin expanding by over 400 basis points to 18%. However, general and administrative expenses increased to $36.9 million, representing 23% of revenue, mainly due to increased marketing and advertising costs and management salaries and benefits.
The net loss for Q1 2024 narrowed to $(26.1) million compared to $(33.7) million in the prior year, driven by higher Restaurant-Level Profit and reduced pre-opening costs.
Looking ahead to fiscal year 2024, Sweetgreen anticipates opening 23-27 net new restaurants, with revenue ranging from $660 million to $675 million. Same-Store Sales Change is projected between 4-6%, with Restaurant-Level Profit Margin targeted at 18.5%-20% and Adjusted EBITDA expected to range between $10 million to $19 million. Reconciliation of these figures to GAAP measures is pending due to the inherent uncertainties and potential variability of reconciling items
