Sweetgreen Sees Shares Slip After Earnings Report – Los Angeles Business Journal

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Although it narrowed its net loss and increased revenue in the third quarter, it shares Sweetgreen Inc. After the release of the financing, it was still reduced.

The West Adams-based healthy food restaurant chain fell 12 percent from its $11.07 share price on Nov. 2 and closed at $9.73 the next day.

Shares have started yo-yoing, going down and then starting to rise, but as of Wednesday were still below pre-Q3 numbers.

The share price closed at 9.55 on November 22.

The company reported a net loss of $25 million (-22 cents a share) for the quarter ended September 24, half of the net loss of $51 million (-46 cents) in the same period last year. Revenue increased 24 percent to $153 million from last year’s third quarter.

The company attributed the increase in revenue to the increase in revenue associated with 54 net new restaurants from the third quarter of last year to the end of the third quarter of this year.

“Big market opportunity”.

Jonathan NeimanThe company’s co-founder and CEO said they were pleased with Sweetgreen’s third-quarter results.

“We are focused on driving long-term and profitable growth to capture a significant market opportunity,” Neiman said in a statement. I couldn’t be more excited about the future of Sweetgreen and the progress we’re making to redefine fast food.

On a conference call with analysts to discuss third-quarter earnings, Neiman said that sometimes improvements in business are not always visible to the outside world.

“And in many ways, we had to spend more time stabilizing our company than building it on the back of Covid,” Neiman said.

While we wait to restore the world,
Although the company has been somewhat slower than it would have liked, it has spent time strengthening its business base, addressing costs and focusing on driving margin expansion, he added.

“Of course, there’s always more work to be done, and we think you, our partners and our shareholders will see the fruits of that work in the coming quarters,” Neiman said. “While we still find ourselves in a complex and volatile environment, what I can say with certainty is that we believe that our return to the offensive and unit-level flows will result in significant returns on capital in the coming years.”

Brian Bittnerwith an analyst Oppenheimer & Co Inc. In New York, in a research note issued on November 3, outperform or buy on shares of Sweetgreen.

“(Sweet Green) reiterated its commitment to be positive for the second quarter (earnings before interest, taxes, depreciation and amortization) and positive for the full year (next year) EBITDA.” “As part of the new unit growth strategy[next year]management plans to begin rolling out non-automated kitchens with two to four remodels of existing units.”

During the conference call, Bittner asked specifically about the Infinite Kitchen retrofits.

“Perhaps they can help us understand the possibility of long-term rehabilitation?” he asked. “I know there’s a lot of opportunity in your new unit pipeline, but what are the main constraints or maybe even opportunities?

Neiman responded by saying that the company sees more restaurants that could eventually be restructured.

The technology can be modular in terms of positioning The Infinite Kitchen is installed according to the average unit size of the restaurant area, where it can be linear or square, or in terms of components to increase cost, Neiman said.

“What’s amazing about the Infinite Kitchen is that the cost of[technology]goes down as we scale,” Neiman added. “As we start to see economies of scale, we’re going to continue to decline, and we’re starting to see that.”

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