Sweetgreen (SG) Q2 2023 earnings

Sweetgreen on Thursday reported quarterly sales that fell short of Wall Street’s expectations, but narrowing losses.

The company also raised its forecast for restaurant-level margins and said it could break even on its adjusted earnings before interest, taxes, depreciation and amortization this year. Sweetgreen, which went public in November 2021, is aiming to turn a profit for the first time by 2024.

Here’s what the company reported:

• Loss per share: 24 cents (That’s not comparable to an estimate of 16 cents, according to Refinitiv consensus estimates.)
• Revenue: $152.5 million vs. $156.7 million expected by analysts polled by Refinitiv

The salad chain reported a second-quarter net loss of $27.3 million, or 24 cents per share, narrower than its net loss of $40.5 million, or 37 cents per share, a year earlier.

The company reported an adjusted EBITDA of $3.3 million, swinging from a loss of $7.8 million in the year-ago period.

Net sales rose 22% to $152.5 million, fueled by new restaurants.

The company’s same-store sales grew 3% in the quarter, bolstered by price hikes.

For 2023, Sweetgreen now expects restaurant-level margins of 16% to 18%, up from its prior range of 15% to 17%. It also expects adjusted EBITDA in a range of a $10 million loss to breaking even. The company previously said is adjusted EBITDA would be a loss of $13 million to $3 million.

The company reiterated the rest of its outlook, projecting revenue of between $575 million and $595 million and same-store sales growth of 2% to 6%.