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Dec 29, 2024
Sweetgreen Q4 2024 Earnings Report
Sweetgreen reported revenue growth but wider losses in Q4 2024.
Key Takeaways
Sweetgreen posted Q4 2024 revenue of $160.9 million, reflecting a 5% year-over-year increase. The company reported a net loss of $29.0 million and an adjusted EBITDA loss of $0.6 million. Same-store sales growth slowed to 4% compared to 6% in the prior year. Digital revenue remained a significant portion of total sales, with 56% of revenue coming from digital channels.
Total revenue increased 5% year-over-year to $160.9 million.
Net loss widened to $29.0 million, with a loss from operations margin of 20%.
Same-store sales increased by 4%, down from 6% in Q4 2023.
Total digital revenue percentage stood at 56%, with owned digital revenue at 29%.
Sweetgreen
Sweetgreen
Forward Guidance
Sweetgreen expects revenue growth in 2025, with a projected range of $760 million to $780 million and at least 40 new restaurant openings. However, same-store sales growth is expected to slow to 1-3%.
Positive Outlook
- Projected revenue of $760 million to $780 million for 2025.
- At least 40 net new restaurant openings, including 20 with Infinite Kitchen automation.
- Restaurant-level profit margin expected to improve to 19.8%-20.5%.
- New loyalty program and menu innovations expected to drive sales.
- Adjusted EBITDA expected to turn positive, projected at $32 million to $38 million.
Challenges Ahead
- Same-store sales growth expected to slow to 1-3% in 2025.
- Higher pre-opening costs due to aggressive restaurant expansion.
- Continued losses from operations expected in the near term.
- Potential impact of macroeconomic conditions on consumer spending.
- Increased marketing and operational expenses to support new initiatives.