By Dhirendra Tripathi
Investing.com – Sweetgreen, Inc. (NYSE:SG) stock soared 17% Friday after the salad chain easily surpassed fourth quarter estimates for revenue, driven by consumer appetite for greens and healthy eating in a post-pandemic world.
Total revenue in the fourth quarter climbed 63% to top $96 million, aided by same-store sales change of 36% and 35 net new restaurant openings.
Higher footfalls at existing outlets and prices hikes contributed to the sales jump, according to the company.
The company terminated its loyalty program, a move that boosted margins. At restaurant level, profit margin improved to 13%. Sweetgreen said scheduling of staff is now more efficient and that’s helping the margins too, which are partially offset by higher wages in a tight labor market.
Net loss jumped more than 50% to over $66 million, owing to stock-based compensation and higher other expenses owing to its public debut in November. Loss was also wider than expected.
In the current year, the company expects to open 35 new restaurants on a net basis with revenue coming in at $525 million at the center of its guidance range. Revenue in the year ended December 26 was $340 million.
Sweetgreen said it’s a long-term focused company and plans on only giving annual guidance. However, as a one-time exception, it issued quarterly guidance, too. Revenue in the first quarter is seen at $101 million at the center of its guidance range.