Sweetgreen stock opened 20% up on Friday: this is why

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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.

  • 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.

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Source: https://invezz.com/news/2022/03/04/sweetgreen-stock-opened-20-up-on-friday-this-is-why/