Sweetgreen’s stock price jumps 34% following revenue beat

Sweetgreen, a popular salad chain, saw its shares increase by nearly 34% after surpassing Wall Street’s revenue expectations for the first quarter of the fiscal year and raising its full-year forecast. The company reported $158 million in revenue, beating the LSEG consensus estimate of $152 million, with a 26% increase from the previous year. Despite a net loss of $26.1 million, or 23 cents per share, the company showed improvement from the year-ago quarter.

Sweetgreen’s CEO and co-founder, Jonathan Neman, attributed the success of the company to the opening of six new restaurants in the first quarter, with the South Lake Union location in Seattle experiencing strong sales during its opening week. The company has plans to expand its reach through the deployment of robots for tasks like dispensing greens and mixing salads, with the goal of opening seven new automated Infinite Kitchen restaurants in 2024.

In a move to broaden its menu offerings, Sweetgreen announced an expansion to include meat options for the first time, with a focus on steak. The addition of steak protein plates and salads was met with positive reception during testing in Boston, with steak becoming a popular choice for dinner orders. The company’s chief concept officer and co-founder, Nicolas Jammet, expressed excitement about providing customers with more options to satisfy their cravings throughout the day.

Investors reacted favorably to the news, pushing Sweetgreen’s shares up by 179% in 2024. The company’s revenue and adjusted EBITDA guidance for the full year was also raised, indicating confidence in its future performance. Accolades from analysts for the success of the Infinite Kitchen locations and the introduction of meat options further bolstered Sweetgreen’s position as a market leader in the fast-casual dining sector.

As Sweetgreen continues to innovate and expand its offerings, the company is poised for continued growth and success in the competitive restaurant industry. By staying ahead of consumer trends and leveraging technology like robotics, Sweetgreen is positioned to attract new customers and retain loyal patrons who value healthy, fresh, and customizable dining options.