Workflow
Sweetgreen(SG) - 2024 Q2 - Quarterly Results
SGSweetgreen(SG)2024-08-08 20:07

Financial Performance - Total revenue for Q2 2024 was 184.6million,a21184.6 million, a 21% increase from 152.5 million in Q2 2023[2] - Revenue for Q2 2024 was 184,641,000,representinga21184,641,000, representing a 21% increase from 152,525,000 in Q2 2023[27] - Revenue for the second quarter of 2024 reached 342.491million,a23.4342.491 million, a 23.4% increase from 277.587 million in the same period of 2023[29] - Same-Store Sales Change was 9%, up from 3% in the prior year period[2] - Same-store sales increased by 9% for the quarter, compared to a 3% increase in the same period last year[33] Profitability Metrics - Loss from operations was (16.2)million,improvingfrom(16.2) million, improving from (31.2) million in the prior year, with a loss margin of (9)% compared to (20)%[2][4] - Restaurant-Level Profit was 41.5million,withamarginof2241.5 million, with a margin of 22%, up from 31.1 million and 20% in the prior year[2] - Adjusted EBITDA was 12.4million,comparedto12.4 million, compared to 3.3 million in the prior year, with an Adjusted EBITDA Margin of 7% versus 2%[2][6] - Adjusted EBITDA for the thirteen weeks ended June 30, 2024, was 12,357,000,significantlyupfrom12,357,000, significantly up from 3,269,000 in the prior year, indicating a strong operational performance[38] - Net loss for the quarter was 40.527million,improvingfromanetlossof40.527 million, improving from a net loss of 60.915 million year-over-year[29] - Net loss for the thirteen weeks ended June 30, 2024, was 14,460,000,comparedtoanetlossof14,460,000, compared to a net loss of 27,258,000 for the same period in 2023, representing a 47% improvement[38] - Net loss margin improved to (8%) for the thirteen weeks ended June 30, 2024, compared to (18%) for the same period in 2023[38] - Adjusted EBITDA margin increased to 7% for the thirteen weeks ended June 30, 2024, up from 2% in the prior year, reflecting enhanced profitability[38] Expenses and Cost Management - General and administrative expenses decreased to 39.2million,or2139.2 million, or 21% of revenue, down from 40.4 million, or 26% of revenue in the prior year[5] - General and administrative expenses were 39,202,000,accountingfor2139,202,000, accounting for 21% of revenue in Q2 2024, down from 26% in Q2 2023[27] - Stock-based compensation for the thirteen weeks ended June 30, 2024, was 10,903,000, down from 14,402,000intheprioryear,suggestingcostmanagementefforts[38]−Restructuringchargesamountedto14,402,000 in the prior year, suggesting cost management efforts[38] - Restructuring charges amounted to 494,000 for the thirteen weeks ended June 30, 2024, a significant decrease from 4,998,000inthesameperiodlastyear,indicatingsuccessfulrestructuringinitiatives[38]AssetandLiabilityManagement−Totalcurrentassetsdecreasedto4,998,000 in the same period last year, indicating successful restructuring initiatives[38] Asset and Liability Management - Total current assets decreased to 265,789,000 in Q2 2024 from 276,111,000inQ22023[25]−Totalliabilitiesincreasedto276,111,000 in Q2 2023[25] - Total liabilities increased to 389,039,000 in Q2 2024 from 373,960,000inQ22023[25]−Cashandcashequivalentsdecreasedto373,960,000 in Q2 2023[25] - Cash and cash equivalents decreased to 244,583,000 in Q2 2024 from 257,230,000inQ22023[25]−Totalcashandcashequivalentsattheendoftheperiodwere257,230,000 in Q2 2023[25] - Total cash and cash equivalents at the end of the period were 245.158 million, down from 280.458millionayearago[31]OperationalHighlights−Thecompanyplanstoopen24−26newrestaurantsinfiscalyear2024[7]−Thecompanyopened4newrestaurantsinthequarter,bringingthetotalto10newopeningsfortheyear[33]−Thecompanyoperatesover225locationsacrosstheUnitedStates,aimingtobuildhealthiercommunitiesthroughrealfood[23]−Thecompanycontinuestoinvestinlocalfarmersandenhancethecustomerexperiencewithinnovativetechnology[23]−ThenewCaramelizedGarlicSteakhasquicklybecomeacustomerfavorite,contributingtothepositivesalesmomentum[2]−Thecompanyisfocusedonexpandingitsmenuanddrivinginnovationtoenhancecustomerexperienceandunlocklong−termvalue[10]DigitalRevenue−Digitalrevenueaccountedfor56280.458 million a year ago[31] Operational Highlights - The company plans to open 24-26 new restaurants in fiscal year 2024[7] - The company opened 4 new restaurants in the quarter, bringing the total to 10 new openings for the year[33] - The company operates over 225 locations across the United States, aiming to build healthier communities through real food[23] - The company continues to invest in local farmers and enhance the customer experience with innovative technology[23] - The new Caramelized Garlic Steak has quickly become a customer favorite, contributing to the positive sales momentum[2] - The company is focused on expanding its menu and driving innovation to enhance customer experience and unlock long-term value[10] Digital Revenue - Digital revenue accounted for 56% of total revenue, with owned digital revenue at 31%[33] Other Financial Metrics - Average unit volume (AUV) for the second quarter was 2,925, consistent with the previous year[33] - Cash provided by operating activities was 22.542million,asignificantincreasefrom22.542 million, a significant increase from 4.821 million in the prior year[31] - Interest income decreased to (2,920,000)forthethirteenweeksendedJune30,2024,comparedto(2,920,000) for the thirteen weeks ended June 30, 2024, compared to (3,251,000) in the prior year, reflecting changes in investment returns[38] - The company incurred 909,000inotherexpensesforthethirteenweeksendedJune30,2024,comparedto909,000 in other expenses for the thirteen weeks ended June 30, 2024, compared to (1,073,000) in the same period last year, highlighting fluctuations in operational costs[38] - The company reported a loss on disposal of property and equipment of 49,000forthethirteenweeksendedJune30,2024,comparedto49,000 for the thirteen weeks ended June 30, 2024, compared to 10,000 in the prior year, indicating asset management challenges[38]