Sweetgreen (NYSE:SG) shares are up by double digits today after the restaurant operator delivered robust numbers for the fourth quarter and issued an optimistic financial outlook. Revenue jumped by nearly 29% year-over-year to $153 million. Further, its net loss per share narrowed to $0.24 from $0.44 in the year-ago period.
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During the quarter, same-store sales expanded by 6%. Importantly, Sweetgreen’s restaurant-level profit jumped to $24.8 million from $12.8 million a year ago. Concurrently, the company’s restaurant-level margin ballooned by nearly 500 basis points to 16%.
Sweetgreen opened 35 new outlets in 2023, taking its footprint to more than 220 locations in the U.S. Jonathan Neman, the CEO and Co-founder of Sweetgreen, noted, “We have a strong foundation to build off in 2024, and we will continue to focus on menu innovation, great restaurant operations, and the Infinite Kitchen to capture demand and drive traffic. I couldn’t be more optimistic and excited for the year ahead.”
For Fiscal Year 2024, Sweetgreen anticipates revenue in the range of $655 million to $670 million. Adjusted EBITDA for the year is seen landing between $8 million and $15 million. The company plans to open 23 to 27 net new locations during this period.
What Is the Price Target for Sweetgreen?
Shares of the company have rallied by nearly 28% over the past three months. Overall, the Street has a Moderate Buy consensus rating on Sweetgreen alongside an average price target of $13.40. However, analysts’ views on the stock could see a revision following its earnings report.
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