On August 8, 2024, Sweetgreen Inc (SG, Financial) released its 8-K filing detailing the financial results for the second fiscal quarter ended June 30, 2024. Sweetgreen Inc is a next-generation restaurant and lifestyle brand that serves healthy food at scale, focusing on plant-forward, seasonal, and earth-friendly meals.
Performance Overview
Sweetgreen Inc (SG, Financial) reported total revenue of $184.6 million for Q2 2024, a 21% increase compared to $152.5 million in the same period last year. This growth was driven by a 9% Same-Store Sales Change and the addition of 36 Net New Restaurant Openings since Q2 2023. The company's loss from operations narrowed to $16.2 million from $31.2 million in the prior year period, reflecting improved operational efficiencies.
Key Financial Achievements
Sweetgreen Inc (SG, Financial) achieved a Restaurant-Level Profit of $41.5 million, up from $31.1 million in Q2 2023, with a Restaurant-Level Profit Margin of 22%, an improvement from 20% in the prior year period. Adjusted EBITDA also saw a significant increase to $12.4 million from $3.3 million, with an Adjusted EBITDA Margin of 7%, up from 2% last year.
“I’m proud of the continued momentum we saw in the second quarter as we connected more communities to real food. Our commitment to innovation and operational execution delivered a strong quarter with same store sales growth of 9%, 22% restaurant-level margin and Adjusted EBITDA of $12.4 million,” said Jonathan Neman, Co-Founder and Chief Executive Officer.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $184.6 million | $152.5 million |
| Loss from Operations | $(16.2) million | $(31.2) million |
| Net Loss | $(14.5) million | $(27.3) million |
| Adjusted EBITDA | $12.4 million | $3.3 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Sweetgreen Inc (SG, Financial) reported total assets of $859.2 million, slightly up from $856.6 million at the end of 2023. The company maintained a strong cash position with $244.6 million in cash and cash equivalents. Net cash provided by operating activities was $22.5 million for the first half of 2024, compared to $4.8 million in the same period last year.
Operational Metrics
Sweetgreen Inc (SG, Financial) reported an Average Unit Volume (AUV) of $2.9 million, consistent with the prior year period. The Total Digital Revenue Percentage was 56%, and the Owned Digital Revenue Percentage was 31%, reflecting a slight decrease from 59% and 37%, respectively, in Q2 2023.
Analysis and Outlook
Sweetgreen Inc (SG, Financial) demonstrated robust revenue growth and improved profitability metrics in Q2 2024. The company's focus on operational efficiency and menu innovation has resonated well with customers, as evidenced by the 9% Same-Store Sales Change. However, challenges such as higher protein costs and staffing expenses remain. The company's ability to navigate these challenges while continuing to expand its restaurant footprint will be crucial for sustained growth.
“We delivered strong topline sales with year-over-year revenue growing 21%. This was complemented by strong Adjusted EBITDA driven by margin flow through and G&A leverage. Despite a heightened uncertain economic backdrop for the consumer, we are raising our guidance for 2024 given our results during the first half of the year,” said Mitch Reback, Chief Financial Officer.
For the full fiscal year 2024, Sweetgreen Inc (SG, Financial) has updated its financial guidance, expecting revenue to range between $670 million and $680 million, with a Same-Store Sales Change of 5-7% and an Adjusted EBITDA between $16 million and $19 million.
Explore the complete 8-K earnings release (here) from Sweetgreen Inc for further details.
