Sweetgreen stock rallies more than 20% after Q4 sales beat

Sweetgreen Inc. reported mixed quarterly results late Thursday, and the stock rallied more than 20% after the fast-casual restaurant said it demonstrated “continued recovery from the pandemic” and benefited from higher prices for its salads and other health-minded meals. Sweetgreen said it lost $66.2 million, or $1.14 a share, in the fourth quarter, compared with a loss of $41.1 million, or $2.49 a share, in the year-ago period. Revenue rose 63% to $96.4 million, the company said. Analysts polled by FactSet expected a loss of 66 cents a share on sales of $84.7 million. Same-store sales rose 36%, benefiting from an increase in the number of transactions in addition to the menu price increases, the company said. Sweetgreen, which had its successful initial public offering in November, guided for 2022 sales between $515 million and $535 million and “at least” 35 net new restaurant openings, barring “no additional COVID headwinds,” it said. The company also issued a one-time quarterly guidance for its first quarter, saying it expects seven net new restaurant openings and revenue between $100 million and $102 million. Sweetgreen became a public company in November, with the stock opening nearly 90% above its upsized IPO price. The company is “proud of our financial performance following a successful IPO and remain laser focused on executing,” co-founder and Chief Executive Jonathan Neman said in a statement. Shares of Sweetgreen ended the regular trading day down 11%.

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