Sweetgreen stock opened 20% up on Friday: this is why
- Sweetgreen reports a 63% year-over-year increase in its quarterly revenue.
- The salads company wants to open 35 net new restaurants in 2022.
- Shares of the fast-casual restaurant chain are up nearly 20% on Friday.
Sweetgreen Inc (NYSE: SG) shares opened nearly 20% up on Friday after the fast-casual restaurant said its sales noted a significant increase in the fiscal fourth quarter.
Sweetgreen Q4 earnings report
The salads expert attributed the uptick in sales to higher prices and continued recovery from the COVID crisis.
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- Net loss widened from last year’s $41.1 million to $66.2 million in Q4.
- Per-share loss still narrowed to $1.14 versus $2.49 in the same quarter of fiscal 2020.
- Revenue noted a year-over-year growth of 63% to $96.4 million.
- FactSet consensus was for 66 cents of per-share loss on $84.7 million in revenue.
- Comparable sales were up 36%, as per the earnings press release.
- Opened 10 net new restaurants, an increase from 4 in the comparable quarter of last year.
It was the first earnings report for Sweetgreen since going public at $28 a share in November. The stock is still down 10% from the IPO price.
Sweetgreen fiscal 2022 guidance
For the full financial year, Sweetgreen Inc forecasts up to $535 million in revenue, including $100 million to $102 million it expects in Q1.
The California-based company wants to open seven net new restaurants this quarter and “at least” 35 in 2022 as a whole. Its guidance assumes no additional headwinds from the pandemic. In the earnings press release, CEO Jonathan Neman said:
We remain laser focused on executing against our growth strategies, including expanding and evolving our footprint and enhancing our digital experience with a focus on owned digital relationships.