Q3 2024 Sweetgreen Inc Earnings Call Transcript
Key Points
- Sweetgreen Inc (SG) reported a 13% year-over-year sales growth, reaching $173.4 million for the third quarter.
- The company successfully opened five new restaurants, with three featuring the innovative Infinite Kitchen technology.
- Restaurant-level margins expanded by over 100 basis points to 20.2%, marking the seventh consecutive quarter of margin improvement.
- The Infinite Kitchen technology is delivering significant labor savings of 700 basis points and enhancing customer satisfaction.
- Sweetgreen Inc (SG) plans to open at least 40 new restaurants in 2025, with approximately half being Infinite Kitchens, indicating strong growth potential.
- Despite improvements, Sweetgreen Inc (SG) reported a net loss of $20.8 million for the quarter.
- The cost of implementing Infinite Kitchen technology adds an incremental $450,000 to $550,000 per unit, impacting overall build-out costs.
- Protein costs were slightly unfavorable, affecting the food, beverage, and packaging cost percentage.
- The company is still in the early stages of optimizing labor and operational efficiencies, indicating ongoing challenges.
- There is uncertainty regarding the broader macroeconomic impact on sales trends, as noted in the discussion about September and October performance.
Thank you for standing by. My name is Danica and I will be your conference operator today. At this time, I would like to welcome everyone to the Sweet Green Incorporated third quarter 2024 earnings call. (Operator Instructions)
I would now like to turn the call over to Rebecca Nounou, Vice President of Investor Relations.
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 including 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-looking
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