Sweetgreen (SG) Q2 2022 profits meet estimates

A employee wears a Sweetgreen Inc. hat whilst making ready meals within the corporate’s eating place in Boston, Massachusetts.

Adam Glanzman | Bloomberg | Getty Images

Shares of Sweetgreen plunged greater than 20% in prolonged buying and selling Tuesday after the salad chain diminished its 2022 forecast.

The eating place corporate additionally stated it laid off 5% of its strengthen middle staff and can downsize to a smaller place of business development to decrease its working bills.

Sweetgreen’s inventory has fallen 37% since its preliminary public providing in November.

Here’s what the corporate reported in comparison with what Wall Street was once anticipating, in line with a survey of analysts by way of Refinitiv:

  • Loss according to proportion: 36 cents, consistent with estimates
  • Revenue: $124.9 million vs. $130.2 million anticipated

Sweetgreen gross sales softened round Memorial Day, main the corporate to revise its forecast decrease, CFO Mitch Reback stated in a observation.

As temperatures grew warmer, so did inflation, striking drive on customers’ spending. Other eating place chains, like Chipotle Mexican Grill, additionally famous the go back of seasonal tendencies as place of business employees and scholars resumed their pre-pandemic summer time routines.

In the quarter ended June 26, Sweetgreen’s web gross sales rose 45% to $124.9 million. Its same-store gross sales climbed 16%, boosted by way of 6% menu worth hikes.

For 2022, Sweetgreen now expects annual income of $480 million to $500 million, down from its prior forecast of $515 million to $535 million. The chain additionally revised its outlook for same-store gross sales, predicting expansion of 13% to 19%, down from the former projection of 20% to twenty-five%.

Moreover, Sweetgreen additionally modified its outlook for adjusted losses sooner than hobby, taxes, depreciation and amortization to a variety of $45 million to $35 million, wider than its earlier vary of $40 million to $33 million.

But the chain shared the stairs it is taking to succeed in profitability, together with layoffs and lowering its actual property footprint by way of transferring to a smaller place of business. Severance programs and comparable advantages are anticipated to price the corporate between $500,000 to $800,000, whilst the place of business transfer will value $8.4 million to $9.9 million. The fees are anticipated to have an effect on its third-quarter effects.

Sweetgreen reported a second-quarter web lack of $40 million, or 36 cents according to proportion, wider than a web lack of $26 million, or $1.55 according to proportion, a yr previous. The corporate blamed an building up in stock-based reimbursement for its expanding losses.

Read the full earnings report here.

This is a growing tale. Check again for updates.

Source Link: https://www.cnbc.com/2022/08/09/sweetgreen-stock-plummets-after-salad-chain-cuts-forecast-announces-layoffs.html

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