Sweetgreen Shares Up 35% After Beating Revenue Expectations

Sweetgreen shares ( SG ) surged by 35% on Friday after the company reported better-than-expected revenue results for its fiscal first quarter. The salad chain also raised its revenue and adjusted EBITDA guidance for fiscal year 2024. The company announced earlier this week that it is adding steak to its menu in an expansion of its protein offerings.

Sweetgreen ( SG ) reported $158 million in revenue, beating the LSEG consensus estimate of $152 million. Revenue jumped 26% from $125.1 million in the year-earlier period. Same-store sales grew 5%, which the company noted was consistent with the prior-year period. Sweetgreen ( SG ) also raised revenue and adjusted EBITDA guidance for the full year.

Shares of the company are up 189% so far in 2024. On an earnings call with analysts, Sweetgreen CEO and co-founder Jonathan Neman said that the company opened six new restaurants in the first quarter, highlighting the success of the South Lake Union location in Seattle. The company began deploying robots for tasks like dispensing greens and mixing salads in its restaurants last year, dubbed the "Infinite Kitchen," which was first implemented in May 2023 with the opening of the company's pilot store in Naperville, Illinois.

Sweetgreen remains "on track" to open about seven new automated Infinite Kitchen restaurants in 2024 and plans to establish more next year. Analysts were impressed by the early results from the Infinite Kitchen locations, according to StreetAccount.

Earlier this week, the company announced it is adding steak to its menu in an expansion of its protein offerings with a caramelized garlic steak protein plate, a steakhouse chopped warm bowl, and a kale Caesar steak salad.

Sweetgreen ( SG ) beat revenue estimates and raised its outlook as new restaurants and a boost in menu prices drove up sales. Same-store sales and restaurant-level profit margin also rose. The news sent shares soaring to their highest level in more than two years.

Technical Outlook
Sweetgreen stock ( SG ) is up 33% on Friday market trading with a Relative Strength Index (RSI) of 75 which is largely overbought. The stock daily price chart depicts an upward gapping due to the earnings beat.