Shares of new concept fast-casual restaurant chain Sweetgreen Inc. (SG:NYSE) traded up 23% after the company released Q4/21 and FY21 financial results highlighting a revenue increase of 63% YoY in Q4/21.
Following the close of U.S. financial markets yesterday, fast-food operator Sweetgreen Inc. (SG:NYSE), which serves healthy foods made from local, seasonal and organic ingredients, announced its fourth quarter financial results. and the full year of 2021 ended December 26, 2021.
Sweetgreen Co-Founder and CEO Jonathan Neman said, “Our strong performance in the fourth quarter reflects our continued commitment to delivering sustainable results and great results for our customers, our communities and our business. We are extremely proud of our financial performance after a successful IPO. and remain focused on executing our growth strategies, including expanding and evolving our footprint and enhancing our digital experience with a focus on owned digital relationships.”
“I have so much gratitude for our team members and our network of more than 200 sustainable farmers and suppliers who fuel our mission every day to build healthier communities by connecting people to real food,” added the Neman CEO.
The company’s Chief Financial Officer, Mitch Reback, said, “Our fourth quarter results demonstrate continued recovery from the pandemic…We showed significant operating leverage as we experienced revenue growth, reduced our loss of operations, improved restaurant-level margins and leverage in our G&A, excluding equity compensation and non-recurring items As we enter 2022, we are well positioned to make further progress towards our goals. financial resources that prioritize the unit’s growth and profitability.
Sweetgreen reported that in Q4/21, total revenue increased 63% to $96.4 million from $59.2 million in Q4/20. The company reported Q4/21 comparable store sales increased 36% over Q4/20 data and noted that average unit volume (AUV) increased $0.4 million to $2. $.6 million, compared to $2.2 million for the corresponding period of the previous year. Sweetgreen said the 36% change in same-store sales was due to a 32% increase in transaction volume and a 4% increase in its menu prices.
The company said that in Q4/21 it recorded an operating loss of $47.8 million, compared to an operating loss of $40.1 million in Q4/20. The company noted; however, this restaurant-level profit in Q4/21 increased to $12.3 million from a loss of $2.4 million in Q4/20.
Sweetgreen reported adding 10 new (net) restaurants in Q4/21, compared to only 4 new (net) openings in Q4/20. For FY/21, the company opened 31 new (net) restaurants, 16 more than the 15 new (net) restaurants added during FY/20.
For fiscal 2021, the company reported that total revenue increased 54% year-over-year to $339.9 million, from $220.6 million in fiscal 2020. The company added that same-store sales in FY21 were up 25% year-over-year.
The company reported that for FY21 it had an operating loss of $134.4 million, compared to an operating loss of $141.6 million for FY20. Sweetgreen reported that for fiscal 2021, restaurant-level profit increased to $40.4 million from a loss of $8.7 million for fiscal 2020.
The company said it posted a net loss of $153.2 million in fiscal 2021, compared to a net loss of $141.2 million in fiscal 2020.
Sweetgreen offered forward guidance and said that for FY22, it plans to open at least 35 new (net) restaurants. The company said that for FY22, it expects revenue of $515 million to $535 million and comparable store sales growth of 20 to 26 percent.
The company added that due to the unique timing of its earnings release, it is also providing its expectations for Q1/22.
Sweetgreen said that in Q1/22, it plans to open 7 new (net) restaurants and estimates revenue of $100-102 million. The company added that it expects same-store sales to increase 30-33%.
Sweetgreen is based in Los Angeles, CA, and is dedicated to making real food convenient and accessible to everyone. The company operates approximately 150 restaurants in 13 states where “its team members create plant-based, seasonal and eco-friendly meals using fresh ingredients and produce that prioritizes organic, regenerative sourcing. and locally”. The company said it works to build healthier communities by connecting people to real food.
Sweetgreen started the day with a market capitalization of approximately $2.3 billion with approximately 107.0 million shares outstanding and a short position of approximately 6.0%. SG shares opened 16.5% higher today at $24.875 (+$3.525, +16.51%) from yesterday’s closing price of $21.35. The stock traded today between $24.00 and $27.2056 per share and is currently trading at $26.21 (+$4.86, +22.76%).
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