Sweetgreen, Inc (NYSE: SG) experienced a notable surge in its stock performance during the recent weekend session, marking an increase of 28.41% to culminate at $16.36. This uptrend in Sweetgreen’s stock price ensued following the release of its quarterly financial results.
Sweetgreen (SG) disclosed its financial outcomes for the fourth fiscal quarter and the entire fiscal year concluding on December 31, 2023. Total revenue for the fourth quarter of 2023 amounted to $153.0 million, exhibiting a 29% growth compared to the corresponding period in the previous year.
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This expansion primarily stemmed from the additional revenue generated by the introduction of 45 Net New Restaurant Openings during or after the fourth quarter of 2022 through the end of the fourth fiscal quarter of 2023, alongside a 6% rise in Same-Store Sales Change.
The 6% growth in Same-Store Sales Change predominantly comprised a 5% advantage from menu price adjustments implemented subsequent to the prior year’s period, coupled with a 1% increase in traffic/mix. Furthermore, SG benefited from an additional week of revenue in fiscal year 2023. The net loss for the fourth quarter of 2023 amounted to $(27.4) million, as opposed to $(49.3) million recorded in the corresponding period of the prior year.
This alteration was chiefly attributed to a $12.0 million surge in its Restaurant-Level Profit, as mentioned earlier, a $6.4 million reduction in stock-based compensation expenses, and a decline in general and administrative expenses, partly offset by an escalation in depreciation and amortization linked with the introduction of additional restaurants.
Sweetgreen had a robust year, marked by sustained high growth, significant operational efficiency, and notable innovation across its operations. In the fourth quarter, SG expanded its restaurant-level profit margins by 500 basis points in 2023 compared to 2022, with projected guidance pointing towards Achieving Adjusted EBITDA profitability in 2024.
The company is well-positioned to capitalize on its strong foundation in 2024, with a continued emphasis on menu innovation, excellent restaurant management, and leveraging the Infinite Kitchen concept to meet demand and enhance footfall.
