Despite reporting a 13% Q3 revenue increase, Los Angeles-based Sweetgreen saw a loss per share of 18 cents. Analysts projected a loss of 14 cents, according to Bloomberg.
Total revenue was $173.4 million, versus $153.4 million in the prior year period, and same-store sales were also up 6% over last year, said Jonathan Neman, co-founder and CEO, who was optimistic about the news.
“Our strong third-quarter performance demonstrates that our focus on menu innovation showcasing seasonal ingredients and driving operational execution is working,” he said in a company press release. “Top line revenue grew 13% with positive traffic and mix contributing to same-store sales growth of 6% — a testament to the dedication of our teams, the continued loyalty of our guests, and the strength of our brand as we continue to redefine fast food.
“Our expanded menu together with the performance of our 2024 class of new restaurant openings, growth in emerging markets and our successful deployment of the Infinite Kitchen gives us confidence in the reacceleration of our 2025 unit growth.”
Other Q3 highlights included:
- AUV of $2.9 million was consistent with the prior year period.
- Total digital revenue percentage of 55% and owned digital revenue percentage of 29%, versus total digital revenue percentage of 58% and owned digital revenue percentage of 37% in the prior year period.
- Loss from operations was $21.2 million and loss from operations margin was 12%
- Restaurant-level profit was $34.9 million and restaurant-level profit margin was 20%, versus $29.1 million and 19% in the prior year period.
- Net loss was $20.8 million and net loss margin was 12%, versus net loss of $25.1 million and net loss margin of (16)% in the prior year period.
“In the third quarter, we reported a 20.2% restaurant-level margin, a more than 100 basis point improvement from the third quarter of 2023 and marking our 7th consecutive quarter of year-over-year restaurant-level margin expansion,” CFO Mitch Reback said in the release. “Adjusted EBITDA for the quarter was $6.8 million, up from $2.5 million from the third quarter of 2023. Our year-to-date Adjusted EBITDA of $19.3 million versus a $1 million loss this time last year continues to demonstrate our focus on profitability.
We are encouraged by our performance nine months into the year on both the top and bottom line, which is why we are raising our fiscal year 2024 guidance.”
