Sweetgreen Inc has reported a narrower second-quarter loss as it targets its first profit in 2024 and said it may reach break-even on underlying earnings by the end of 2023.
However, sales at the US casual restaurant chain specializing in salads fell short of expectations, sending its shares sharply lower on Friday.
Over the three months to June 25, 2023, the company opened a net 10 new restaurants, up from 8 in the prior year period, taking the total net new restaurant openings over the past year to 47.
Total revenue for the period rose 22% to $152.5 million, below the $156.7 million consensus estimate of analysts, according to Refinitiv.
Its net loss narrowed to $27.3 million from $40.5 million a year earlier, while adjusted underlying earnings (EBITDA) improved to $3.3 million from a $7.8 million loss in 2Q 2022.
It reported a net loss per share of $0.24 from $0.37 a year earlier.
“As we entered 2023, we doubled down on our commitment to durability – balancing high growth and profitability – and our second quarter performance put that commitment into action,” co-founder and CEO Jonathan Neman said in a statement.
“In the second quarter, we recorded our ninth consecutive quarter of over 20% sales growth year-over-year.”
Sweetgreen said it is planning 30 to 35 net new restaurant openings for fiscal 2023, with full-year revenue likely to range from $575 million to $595 million. It expects to report adjusted EBITDA of between zero and a $10 million loss.
The company’s shares were down 9.5% at $13.98 in early afternoon trade.
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