Q2 2024 Sweetgreen Inc Earnings Call Transcript
Key Points
- Sweetgreen Inc (SG) reported a strong second quarter with sales of $184.6 million, representing a 21% year-over-year growth.
- Same-store sales grew by 9%, driven by a 5% benefit from menu price increases and a 4% increase in positive traffic and mix.
- Restaurant-level margins expanded over 200 basis points year over year to 22.5%, marking one of the highest performances in the company's history.
- The company successfully opened four new restaurants in strategic locations, including a new market in New Hampshire, with new openings outperforming existing fleet averages.
- Sweetgreen Inc (SG) completed its first Infinite Kitchen retrofit at Penn Plaza, achieving high throughput levels and positive customer feedback, indicating potential for future scalability.
- Despite strong performance, Sweetgreen Inc (SG) remains cautious about the uncertain US economic backdrop, which could impact future growth.
- Net loss for the second quarter was $14.5 million, although this was an improvement from the previous year's loss.
- The company experienced a higher level of repair and maintenance expenses, particularly around HVAC systems, impacting other operating expenses.
- There is a degree of uncertainty regarding the scalability and cost efficiency of the Infinite Kitchen, as it is still in early stages of deployment.
- Sweetgreen Inc (SG) faces challenges in maintaining consistent average unit volumes (AUVs) despite strong same-store sales growth, partly due to new store dynamics.
Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sweetgreen Inc., second-quarter 2024 earnings call. (Operator Instructions)
I would now like to turn the conference over to Rebecca Nounou, Vice President, Head of Investor Relations. You may begin.
Thank you, and good afternoon, everyone. Speaking on today's call will be Jonathan Neman, Co-Founder and Chief Executive Officer; and Mitch Reback, Chief Financial Officer. Both will be available for questions during the Q&A session following the prepared remarks.
Today's call is being webcast live and recorded for replay. I'd like to remind everyone that the information under the heading, Forward-looking Statements, included in our earnings release also applies to our comments made during the call. These forward-looking statements are based on information as of today, and we assume no obligation to publicly update or revise our forward
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