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Jun 26, 2022

Sweetgreen Q2 2022 Earnings Report

Sweetgreen's financial performance in Q2 2022 showed revenue growth and improved restaurant-level margins, but also revealed a net loss and lowered full-year guidance due to revenue softness.

Key Takeaways

Sweetgreen reported a 45% increase in revenue for Q2 2022, reaching $124.9 million, and an improvement in restaurant-level margins to 18.5%. However, the company experienced a net loss of $40.0 million and has lowered its 2022 guidance due to softness in revenue observed around Memorial Day.

Total revenue increased by 45% year-over-year, reaching $124.9 million.

Same-store sales increased by 16% compared to the prior year.

Restaurant-level profit margin improved to 18%, up from 15% in the prior year.

The company lowered its 2022 revenue guidance due to recent softness in sales.

Total Revenue
$125M
Previous year: $12.8M
+873.2%
EPS
-$0.36
Previous year: -$1.55
-76.8%
Same-Store Sales Change
16%
Previous year: 86%
-81.4%
AUV
$2.9M
Previous year: $2.4M
+20.8%
Net New Restaurant Openings
8
Previous year: 9
-11.1%
Gross Profit
$11.7M
Previous year: $86.2M
-86.4%
Cash and Equivalents
$407M
Previous year: $150M
+171.9%
Free Cash Flow
-$29.2M
Previous year: -$32.5M
-10.1%
Total Assets
$727M

Sweetgreen

Sweetgreen

Forward Guidance

For fiscal year 2022, Sweetgreen anticipates at least 35 net new restaurant openings, revenue ranging from $480 million to $500 million, same-store sales change of between 13% and 19%, restaurant-level profit margin between 15% and 17%, and adjusted EBITDA between $(45) million to $(35) million.

Positive Outlook

  • At least 35 Net New Restaurant Openings
  • Revenue ranging from $480 million to $500 million
  • Same-Store Sales Change of between 13% and 19%
  • Restaurant-Level Profit Margin between 15% and 17%