Sweetgreen Q3 Earnings & Revenues Miss Estimates, Rise Y/Y

Sweetgreen, Inc. SG reported third-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.SG’s Q3 Earnings & Revenue DiscussionIn the fiscal third quarter, Sweetgreen recorded an adjusted loss per share of 18 cents, wider than the Zacks Consensus Estimate of a loss of 16 cents. The company reported an adjusted loss per share of 22 cents in the prior-year quarter.Quarterly revenues of $173.4 million missed the consensus mark of $174 million. However, the top line increased 13% year over year. The upside was driven by new restaurant openings and an increase in Same-Store Sales (6% year over year). Same-Store sales growth comprised a 4% boost from menu price adjustments and a 2% rise in traffic/mix.Sweetgreen, Inc. Price, Consensus and EPS Surprise Sweetgreen, Inc. price-consensus-eps-surprise-chart | Sweetgreen, Inc. QuoteOperating ResultsThe restaurant-level profit margin was 20% in the fiscal third quarter (compared with 19% reported in the prior-year quarter). The upside was driven by same-store sales growth of 6%, labor optimization and reduced occupancy rates across recently opened stores. However, this was partially offset by higher protein costs and staffing expenses.During the fiscal third quarter, labor and related expenses increased 8.6% year over year to $47.5 million. Other operating costs during the quarter increased 13.5% year over year to $28.2 million.General and administrative expenses during the quarter came in at $36.8 million, compared with $36 million reported in the prior year quarter. The rise was due to increased spending at the Sweetgreen Support Center to support the company's restaurant expansion.Adjusted earnings before interest expenses, income taxes, depreciation and amortization (EBITDA) during the fiscal third quarter amounted to $6.8 million compared with $2.5 million reported in the prior-year quarter.Other Financial InformationAs of Sept. 29, 2024, Sweetgreen had cash and cash equivalents of $234.6 million compared with $257.2 million as of Dec. 31, 2023.2024 GuidanceFor fiscal 2024, the company expects total revenues to be in the range of $675-$680 million. The company anticipates same-store sales change to be between 6% and 7%. Restaurant-Level Profit Margin is projected to be in the range of 19.5-20%. The company expects adjusted EBITDA to be between $18 million and $20 million. For fiscal 2024, the company expects to open 24-26 new restaurants.SG’s Zacks RankSweetgreen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Retail-Wholesale ReleasesChipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Shake Shack, Inc. (SHAK): Free Stock Analysis Report Sweetgreen, Inc. (SG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks