Sweetgreen (NYSE:SG) on Thursday reported quarterly sales that fell short of Wall Street’s expectations, but losses did narrow from the year-earlier period.
The company also raised its forecast for restaurant-level margins and said it could break even on its adjusted earnings before interest, taxes, depreciation and amortization this year. Sweetgreen, which went public in November 2021, is aiming to turn a profit for the first time by 2024.
Loss per share was 24 cents, versus estimates of 16 cents. Revenue proved to be $152.5 million vs. $156.7 million expected.
The salad chain reported a second-quarter net loss of $27.3 million, or 24 cents per share, narrower than its net loss of $40.5 million, or 37 cents per share, a year earlier.
The company reported an adjusted EBITDA of $3.3 million, swinging from a loss of $7.8 million in the year-ago period.
The chain’s restaurant-level profits expanded to 20% from 19% in the year-ago period.
Neman said the company’s improved restaurant-level margins were largely due to labor savings from less turnover and more efficient store staffing. He also said the company has been spending less on its ingredients.
“I think our supply chain procurement team did an awesome job around the cost of our goods, maintaining the high quality we expect, but doing it in a much more disciplined way,” Neman said.
Net sales rose 22% to $152.5 million, fueled by new restaurants.
The stock opened lower $1.55, or 10%, to $13.89 Friday.
