Sweetgreen Inc Reports Strong Q2 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Sweetgreen, Inc. Reports Strong Q2 2024 Financial Results
Sweetgreen, Inc. (NYSE: SG), the mission-driven, next-generation restaurant and lifestyle brand, has announced its financial results for the second fiscal quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue (in $M) | 184.6 | 152.5 | +21% | N/A |
| Loss from Operations (in $M) | (16.2) | (31.2) | +48% | N/A |
| Loss from Operations Margin (%) | (9) | (20) | +11 pp | N/A |
| Net Loss (in $M) | (14.5) | (27.3) | +47% | N/A |
| Adjusted EBITDA (in $M) | 12.4 | 3.3 | +275% | N/A |
| Adjusted EBITDA Margin (%) | 7 | 2 | +5 pp | N/A |
Interpretation: Sweetgreen's financial performance in Q2 2024 reflects significant improvement compared to Q2 2023, with a 21% increase in total revenue and a notable reduction in net loss. The company also achieved a substantial increase in Adjusted EBITDA, indicating improved operational efficiency.
Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | YoY Change | Previous Guidance |
|---|---|---|---|---|
| Digital Revenue (%) | 56 | 59 | -3 pp | N/A |
| Owned Digital Revenue (%) | 31 | 37 | -6 pp | N/A |
| Same-Store Sales Change (%) | 9 | 3 | +6 pp | N/A |
Interpretation: Sweetgreen saw a 9% increase in same-store sales, up from 3% in the prior year period, driven by both menu price increases and positive changes in customer traffic and product mix. Digital revenue percentages declined, indicating a shift in purchase channels.
Operational Data
| Key Operational Metrics | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Average Unit Volume (AUV) (in $M) | 2.9 | 2.9 | 0% |
| Net New Restaurant Openings | 4 | 10 | -60% |
Interpretation: With a stable AUV and a reduced number of net new restaurant openings compared to the prior year, the company focuses on optimizing current operations and expanding selectively.
Comments from Company Officers
Jonathan Neman, Co-Founder and CEO, highlighted the company’s ongoing innovation and strong operational execution, contributing to the company's solid results. CFO Mitch Reback attributed the strong top-line sales and robust EBITDA margins to effective margin flow-through and G&A leverage, despite uncertain economic conditions.
Dividends and Share Repurchase Program
No information on dividends or share repurchase programs was provided.
Forward Guidance
For fiscal year 2024, Sweetgreen updated its guidance with an expectation of 24-26 net new restaurant openings, revenue ranging from $670 million to $680 million, a same-store sales change between 5-7%, a restaurant-level profit margin of 19-20%, and Adjusted EBITDA between $16 million to $19 million.
Stock Price Movement
Following the earnings release, Sweetgreen’s stock experienced a modest increase of approximately 1.67%.
In summary, Sweetgreen demonstrated notable year-over-year improvements in several key financial metrics for Q2 2024, signaling effective operational strategies and resilience in a challenging economic environment.
