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Mar 26, 2023

Sweetgreen Q1 2023 Earnings Report

Sweetgreen demonstrated strong sales and reduced losses, supported by positive traffic growth.

Key Takeaways

Sweetgreen reported a 22% increase in total revenue, reaching $125.1 million, and a same-store sales increase of 5%. The company also reduced its net loss to $(33.7) million, driven by increased restaurant-level profit and decreased general and administrative expenses. Sweetgreen is focused on launching its loyalty program and expanding its menu to drive further growth.

Total revenue increased by 22% to $125.1 million compared to the prior year.

Same-store sales increased by 5%, driven by menu price increases and transaction growth.

Net loss decreased to $(33.7) million from $(49.7) million in the prior year.

Restaurant-level profit margin improved to 14% due to sales leverage and improved labor efficiencies.

Total Revenue
$125M
Previous year: $103M
+21.9%
EPS
-$0.3
Previous year: -$0.45
-33.3%
Same-Store Sales Change
5%
Previous year: 35%
-85.7%
AUV
$2.9M
Previous year: $2.8M
+3.6%
Net New Restaurant Openings
9
Previous year: 8
+12.5%
Gross Profit
$16.9M
Previous year: $13.3M
+27.4%
Cash and Equivalents
$297K
Previous year: $437M
-99.9%
Free Cash Flow
-$34M
Previous year: -$35.4M
-3.9%
Total Assets
$896K
Previous year: $738M
-99.9%

Sweetgreen

Sweetgreen

Forward Guidance

Sweetgreen reiterates its full year guidance, with the exception of adjusted EBITDA loss, which now includes the $6.9 million benefit from employee retention credits.

Positive Outlook

  • 30-35 Net New Restaurant openings
  • Revenue ranging from $575 million to $595 million
  • Same-Store Sales between 2% and 6%
  • Restaurant-Level Profit Margin between 15%-17%
  • Adjusted EBITDA between $(13) million to $(3) million