Sweetgreen, Inc. (NYSE:SG) CEO Jonathan Neman recently sold shares of the company, according to a filing with the Securities and Exchange Commission. On December 5, Neman sold a total of 33,444 shares of Class A Common Stock, generating proceeds of approximately $1.34 million. The shares were sold at prices ranging from $40.12 to $40.64, as per the filing. The sale comes amid a remarkable year for Sweetgreen, which has seen its stock surge over 233% year-to-date. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with high volatility in price movements.
Following these transactions, Neman holds no shares of Class A Common Stock directly. However, he retains indirect ownership of a significant number of shares through various trusts, including the Jonathan Neman Revocable Trust and the JDRB Trust, among others.
These transactions were executed as part of a pre-arranged trading plan established under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for selling stocks.
In other recent news, Sweetgreen Inc. has been making significant strides in its growth plan. The company's recent third quarter 2024 earnings call revealed a 13% year-over-year increase in sales, reaching $173.4 million, and a 6% growth in same-store sales. The company also managed to decrease its net loss to $20.8 million from $25.1 million year-over-year.
In addition to these financial improvements, Sweetgreen opened five new restaurants in the third quarter, bringing the total to 236 locations. The company has ambitious plans to open at least 40 new restaurants in fiscal year 2025, half of which will feature the innovative Infinite Kitchen technology.
Analyst firm TD Cowen maintains a Buy rating on Sweetgreen shares, expressing confidence in the company's growth strategy and the potential of its Infinite Kitchen concept. The firm sees the Infinite Kitchen as a key factor in margin expansion over the medium term and predicts that the expansion of average unit volume through the Infinite Kitchen will be the next phase in Sweetgreen's growth narrative.
Finally, despite a slight rise in general and administrative expenses to $36.8 million, Sweetgreen raised its fiscal 2024 guidance, projecting revenue between $675 million to $680 million and same-store sales growth of 6% to 7%. The company also plans for menu expansions and enhanced marketing strategies to broaden its brand beyond salads. These are all part of the recent developments at Sweetgreen.
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