Sweetgreen witnessed a remarkable surge in its shares, climbing 35% on Friday, following the company’s surpassing of Wall Street’s revenue projections for the fiscal first quarter and its upward revision of the full-year forecast.
Additionally, the salad chain made headlines earlier in the week by announcing its foray into incorporating meat onto its menu for the first time.
For the fiscal first quarter, Sweetgreen reported $158 million in revenue, exceeding the consensus estimate of $152 million from LSEG. This marked a notable 26% increase from the year-ago period’s revenue of $125.1 million.
The company also achieved a 5% growth in same-store sales, maintaining consistency with the preceding year’s performance. Notably, Sweetgreen revised its revenue and adjusted EBITDA guidance for the entire fiscal year.
Year-to-date, the company’s shares have surged by an impressive 189% in 2024.
Jonathan Neman, CEO, and co-founder of Sweetgreen, highlighted the company’s expansion efforts during an earnings call with analysts, noting the opening of six new restaurants in the first quarter.
Neman particularly emphasized the successful launch of the South Lake Union location in Seattle, which experienced “one of the strongest opening weeks in the company’s recent history.”
Neman underscored the broader market potential for Sweetgreen’s innovative concept, stating, “Openings like these demonstrate that our brand has significantly greater reach than our current physical footprint and that there is massive white space for our category-defining concept.”
Sweetgreen had introduced robotic technology, known as the “Infinite Kitchen,” last year to automate tasks such as dispensing greens and preparing salads.
This initiative, initiated with the opening of the pilot store in Naperville, Illinois, in May 2023, has seen promising results.
Neman confirmed the company’s plans to continue deploying this technology, aiming to open approximately seven new automated Infinite Kitchen restaurants in 2024, with further expansion slated for the following year.
Analysts have expressed admiration for the early outcomes of these Infinite Kitchen locations, according to StreetAccount.
In a significant menu expansion move announced on Tuesday, Sweetgreen introduced steak as part of its protein offerings.
The new additions include a caramelized garlic steak protein plate, a steakhouse chopped warm bowl, and a kale Caesar steak salad.
Nicolas Jammet, Sweetgreen’s chief concept officer and co-founder, noted the positive response during the testing phase in Boston, with the caramelized garlic steak emerging as a popular dinner choice, constituting nearly one in five orders.
Jammet expressed enthusiasm about meeting customer demand across various meal times with these new offerings.
