Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven,
next generation restaurant and lifestyle brand that serves healthy
food at scale, today announced financial results for its second
fiscal quarter ended June 26, 2022.
“Thanks to our team’s execution, second quarter revenue grew 45%
year over year and restaurant level margins increased to 18.5%,”
said Co-Founder and CEO Jonathan Neman. “The team remains laser
focused on operational discipline and our path to profitability. We
will continue to invest in our key strategic initiatives to drive
long term growth and are committed to being a positive force on the
food system, while creating a sustainable and durable brand and
business loved by customers.”
“We are pleased with our Q2 performance. From a profitability
standpoint, we delivered above our expectations. Restaurant-level
margin and Adjusted EBITDA on both a year over year basis and since
Q1 ’22 saw meaningful improvements,” added CFO, Mitch Reback.
“However, we began to see softness in revenue around Memorial Day
and are therefore lowering our 2022 guidance. We will continue to
manage corporate overhead and efficiently run our restaurants as we
work towards profitability.”
Second Quarter 2022 Financial
Results
For the second quarter of fiscal year 2022, compared to the
second quarter of fiscal year 2021:
- Total revenue was $124.9 million versus $86.2 million in the
prior year period, an increase of 45%.
- Same-Store Sales Change of 16% versus Same-Store Sales Change
of 86% in the prior year period.
- AUV of $2.9 million versus AUV of $2.4 million in the prior
year period.
- Total Digital Revenue Percentage of 62% and Owned Digital
Revenue Percentage of 40%, versus Total Digital Revenue Percentage
of 68% and Owned Digital Revenue Percentage of 47% in the prior
year period.
- Loss from operations was $(42.2) million and loss from
operations margin was (34)% versus loss from operations of $(24.2)
million and loss from operations margin of (28)% in the prior year
period.
- Restaurant-Level Profit(1) was $23.0 million and
Restaurant-Level Profit Margin was 18%, versus Restaurant-Level
Profit of $12.8 million and Restaurant-Level Profit Margin of 15%
in the prior year period.
- Net loss was $(40.0) million versus net loss of $(26.9) million
in the prior year period.
- Adjusted EBITDA(1) was $(7.4) million versus Adjusted EBITDA of
$(13.8) million in the prior year period and Adjusted EBITDA Margin
was (6)% versus (16)% in the prior year period.
- 8 Net New Restaurant Openings versus 9 Net New Restaurant
Opening in the prior year period.
(1) Restaurant-Level Profit, Restaurant-Level Profit Margin,
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures.
Reconciliations of Restaurant-Level Profit, Restaurant-Level Profit
Margin, and Adjusted EBITDA to the most directly comparable
financial measures presented in accordance with GAAP, are set forth
in the schedules accompanying this release. See “Reconciliation of
GAAP to Non-GAAP Measures.”
Results for the second quarter ended
June 26, 2022:
Total revenue in the second quarter of 2022 was $124.9 million,
an increase of 45% versus the prior year period, primarily due to
Same-Store Sales Change of 16% and additional revenue associated
with 46 Net New Restaurant Openings during or subsequent to the
second quarter of 2021 through the end of the second fiscal quarter
of 2022. The Same-Store Sales Change of 16% consisted of a 10%
increase from transactions and a 6% benefit from menu price
increases that were implemented subsequent to the prior year
period.
Our loss from operations margin was (34)% for the second quarter
of 2022 versus (28)% in the prior year period. Restaurant-Level
Profit Margin was 18%, an increase of roughly 300 basis points
versus the prior year period, primarily due to greater sales
leverage associated with our recovery from the impact of COVID-19
pandemic compared to the prior year period, a 6% benefit from menu
pricing increases that were implemented subsequent to the prior
year period, and the termination of our loyalty program. These
increases were partially offset by increases in the prevailing wage
rates across the country, continued inflationary pressures and
higher freight related surcharges.
General and administrative expense was $51.3 million, or 41% of
revenue for the second quarter of 2022, as compared to $26.1
million, or 30% of revenue in the prior year period. The increase
in general and administrative expense was primarily due to a $21.3
million increase in stock-based compensation expense, primarily
related to restricted stock units and performance-based restricted
stock units issued prior to our initial public offering. General
and administrative expense was also impacted by $3.5 million
related to an increase in research and development costs associated
with our investment in Spyce, of which $0.2 million is
non-recurring acquisition-related costs, and approximately $1.7
million of increased costs related to our transition to operating
as a public company. General and administrative expenses were also
impacted by an increase in office systems, as we continue to focus
on growth and scalability, an increase in rent, and an increase in
marketing and advertising. These increases were partially offset by
a decrease in management salaries and benefits, including accrued
bonus, a decrease in COVID-19 related costs, and a decrease in
other general and administrative costs.
Net loss for the second quarter of 2022 was $(40.0) million, as
compared to $(26.9) million in the prior year period. The increase
in net loss was primarily due to the $21.3 million increase in
stock-based compensation expense previously discussed, partially
offset by the increase in overall revenue previously discussed.
Adjusted EBITDA, which excludes stock-based compensation and
certain other adjustments, was $(7.4) million for the second
quarter of 2022, as compared to $(13.8) million in the prior year
period. This improvement was primarily due to increased
Restaurant-Level Profit, Net New Restaurant Openings, sales
leverage, and the impact of menu pricing increases described above.
This was partially offset by an increase in general and
administrative costs primarily driven by our transition to
operating as a public company and investment in Spyce related
research and development.
Recent Events
On August 8, 2022, we took a number of steps to manage operating
expenses, with a focus of achieving profitability on an Adjusted
EBITDA basis (the “Plan”), which included workforce reductions
affecting approximately 5% of employees at the sweetgreen Support
Center, and a reduction of our real estate footprint by vacating
the premises for the existing sweetgreen Support Center and moving
to a smaller office space adjacent to our existing location (the
“Office Move”). We expect to incur total pre-tax restructuring and
related charges of approximately $8.9 million to $10.7 million,
including approximately $0.5 million to $0.8 million of severance
and related benefits costs and approximately $8.4 million to $9.9
million of non-cash expenses due to the Office Move. We expect to
recognize these expenses primarily in the third quarter of fiscal
year 2022. The charges that we expect to incur are subject to a
number of assumptions, primarily related to estimated time to
sublease the vacated portion of our Support Center and related
sublease rent received, and actual expenses may differ materially
from the estimates disclosed above.
2022 Outlook
For fiscal year 2022, we now anticipate the following:
- At least 35 Net New Restaurant Openings
- Revenue ranging from $480 million to $500 million
- Same-Store Sales Change of between 13% and 19%
- Restaurant-Level Profit Margin between 15% and 17%
- Adjusted EBITDA between $(45) million to $(35) million
We have not reconciled our expectations as to Restaurant-Level
Profit Margin and Adjusted EBITDA to their most directly comparable
GAAP measures as a result of uncertainty regarding, and the
potential variability of, reconciling items. Accordingly,
reconciliation is not available without unreasonable effort,
although it is important to note that these factors could be
material to our results computed in accordance with GAAP.
Conference Call
Sweetgreen will host a conference all to discuss its financial
results today, August 9, 2022, at 2:00 p.m. Pacific Time. A live
webcast of the call can be accessed from Sweetgreen’s Investor
Relations website at investor.sweetgreen.com. An archived version
of the webcast will be available from the same website after the
call.
Forward-Looking
Statements
This press release and the related conference call, webcast and
presentation contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements may relate to, but are not limited to, statements
regarding our revised financial outlook for the full fiscal year
2022, including the expected number of Net New Restaurant Openings,
expected revenue, expected Same-Store Sales Change, expected
Restaurant-Level Profit Margin and expected Adjusted EBITDA; our
expectations regarding our sales channel mix and impact on our
margins and business; our expectations regarding the COVID-19
pandemic and the impact on our business and results of operations;
our expectations about customer behavior trends, including during
and following the COVID-19 pandemic and as a result of inflation;
our expectations regarding the effect of inflation and increased
interest rates on our business, including on labor rates and supply
chain costs, as well as any future pricing actions taken in an
effort to mitigate the effects of inflation; our growth strategy
and business aspirations, including our goal of operating 1,000
restaurants by the end of the decade; our expectations regarding
the effects of the Plan we implemented in August 2022 to manage
operating expenses; our ability to achieve or maintain
profitability; and our vision of being as ubiquitous as traditional
fast food, but with the transparency and quality that consumers
increasingly expect; management’s plans, priorities, initiatives
and strategies; and our expectations regarding the impacts of the
COVID-19 pandemic. Forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “toward,” “will,” or
“would,” or the negative of these words or other similar terms or
expressions. You should not put undue reliance on any
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at
the time those statements are made and are based on current
expectations, estimates, forecasts, and projections as well as the
beliefs and assumptions of management as of that time with respect
to future events. These statements are subject to risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control, that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These risks and uncertainties include
our ability to compete effectively, the impact of pandemics or
disease outbreaks, such as the COVID-19 pandemic, uncertainties
regarding changes in economic conditions and the customer behavior
trends they drive, including long-term customer behavior trends
during and following the COVID-19 pandemic, our ability to open new
restaurants, our ability to effectively identify and secure
appropriate sites for new restaurants, our ability to expand into
new markets and the risks such expansion presents, the
profitability of new restaurants we may open, and the impact of any
such openings on sales at our existing restaurants, our ability to
preserve the value of our brand, food safety and foodborne illness
concerns, the effect on our business of increases in labor costs,
labor shortages, and difficulties in hiring, training, rewarding
and retaining a qualified workforce, our ability to achieve
profitability in the future, our ability to identify, complete, and
integrate acquisitions, the effect on our business of governmental
regulation and changes in employment laws, the effect on our
business of expenses and potential management distraction
associated with litigation, potential privacy and cybersecurity
incidents, the effect on our business of restrictions and costs
imposed by privacy, data protection, and data security laws,
regulations, and industry standards, and our ability to enforce our
rights in our intellectual property. Additional information
regarding these and other risks and uncertainties that could cause
actual results to differ materially from the Company's expectations
is included in our SEC reports, including our Annual Report on Form
10-K for the fiscal year ended December 26, 2021 and subsequently
filed quarterly reports on Form 10-Q. Except as required by law, we
do not undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments, or otherwise.
Additional information regarding these and other factors that
could affect the Company’s results is included in the Company’s SEC
filings, which may be obtained by visiting the SEC's website at
www.sec.gov. Information contained on, or that is referenced or can
be accessed through, our website does not constitute part of this
document and inclusions of any website addresses herein are
inactive textual references only.
Glossary
- Average Unit Volume (“AUV”) - AUV is defined as
the average trailing revenue for the prior four fiscal quarters for
all restaurants in the Comparable Restaurant Base.
- Comparable Restaurant Base - Comparable
Restaurant Base for any measurement period is defined as all
restaurants that have operated for at least twelve full months as
of the end of such measurement period, other than any restaurants
that had a material, temporary closure during the relevant
measurement period. Historically, a restaurant has been considered
to have had a material, temporary closure if it had no operations
for a consecutive period of at least 30 days. As a result of
material, temporary closures in fiscal year 2020 due to the
COVID-19 pandemic, 19 restaurants were excluded from our Comparable
Restaurant Base for the thirteen and twenty-six weeks ended June
27, 2021. No restaurants were excluded from the Comparable
Restaurant Base for the thirteen and twenty-six weeks ended June
26, 2022.
- Net New Restaurant Openings - Net New Restaurant
Openings reflect the number of new sweetgreen restaurant openings
during a given reporting period, net of any permanent sweetgreen
restaurant closures during the same period.
- Same-Store Sales Change - Same-Store Sales Change
reflects the percentage change in year-over-year revenue for the
relevant fiscal period for all restaurants that have operated for
at least 13 full fiscal months as of the end of such fiscal period;
provided, that for any restaurant that has had a temporary closure
(which historically has been defined as a closure of at least five
days during which the restaurant would have otherwise been open)
during any prior or current fiscal month, such fiscal month, as
well as the corresponding fiscal month for the prior or current
fiscal year, as applicable, will be excluded when calculating
Same-Store Sales Change for that restaurant. As a result of
temporary closures of 19 restaurants due to the COVID-19 pandemic
during fiscal year 2020, Same-Store Sales Change has been adjusted
for the thirteen and twenty-six weeks ended June 27, 2021.
Additionally, as a result of temporary closures of 56 restaurants
due to civil disturbances that occurred during one week in the
second fiscal quarter of fiscal year 2020, we excluded only one
week from the calculation of Same-Store Sales Change for the
thirteen and twenty-six weeks ended June 27, 2021. This is because
excluding an entire fiscal month for these restaurants, which
represented a significant portion of our restaurant fleet, would
result in a Same-Store Sales Change figure that is not
representative of our business as a whole. This financial measure
highlights the performance of existing restaurants, while excluding
the impact of new restaurant openings and closures.
- Total Digital Revenue Percentage and Owned Digital Revenue
Percentage - Our Total Digital Revenue Percentage is the
percentage of our revenue attributed to purchases made through our
total digital channels (which includes our owned digital channels
and our marketplace channel). Our Owned Digital Revenue Percentage
is the percentage of our revenue attributed to purchases made
through our owned digital channels (which includes our pick-up
channel, native delivery channel, and outpost channel, as well as
purchases made in our in-store channel via digital
scan-to-pay).
Non-GAAP Financial
Measures
In addition to our consolidated financial statements, which are
presented in accordance with GAAP, we present certain non-GAAP
financial measures, including Restaurant-Level Profit,
Restaurant-Level Profit Margin, Adjusted EBITDA, and Adjusted
EBITDA Margin. We believe these measures are useful to investors
and others in evaluating our performance because these
measures:
- facilitate operating performance comparisons from period to
period by isolating the effects of some items that vary from period
to period without any correlation to core operating performance or
that vary widely among similar companies. These potential
differences may be caused by variations in capital structures
(affecting interest expense), tax positions (such as the impact on
periods or companies of changes in effective tax rates or NOL), and
the age and book depreciation of facilities and equipment
(affecting relative depreciation expense);
- are widely used by analysts, investors, and competitors to
measure a company’s operating performance; are used by our
management and board of directors for various purposes, including
as measures of performance, as a basis for strategic planning and
forecasting; and
- are used internally for a number of benchmarks including to
compare our performance to that of our competitors.
We define Restaurant-Level Profit as loss from operations
adjusted to exclude general and administrative expense,
depreciation and amortization, pre-opening costs, loss on disposal
of property and equipment, and, in certain periods, impairment of
long-lived assets and closed-store costs. Restaurant-Level Profit
Margin is Restaurant-Level Profit as a percentage of revenue. As it
excludes general and administrative expense, which is primarily
attributable to our sweetgreen Support Center, we evaluate
Restaurant-Level Profit and Restaurant-Level Profit Margin as a
measure of profitability of our restaurants.
We define Adjusted EBITDA as net loss adjusted to exclude
interest income, interest expense, provision for income taxes,
depreciation and amortization, stock-based compensation expense,
loss on disposal of property and equipment, Spyce acquisition
costs, other income, and, in certain periods, impairment of
long-lived assets and closed-store costs. Adjusted EBITDA Margin is
Adjusted EBITDA as a percentage of revenue.
Restaurant-Level Profit, Restaurant-Level Profit Margin,
Adjusted EBITDA, and Adjusted EBITDA Margin have limitations as
analytical tools, and you should not consider them in isolation or
as substitutes for analysis of our results as reported under GAAP.
In particular, Restaurant-Level Profit and Adjusted EBITDA should
not be viewed as substitutes for, or superior to, loss from
operations or net loss prepared in accordance with GAAP as a
measure of profitability. Some of these limitations are:
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future, and Restaurant-Level Profit and Adjusted EBITDA do
not reflect all cash capital expenditure requirements for such
replacements or for new capital expenditure requirements;
- Restaurant-Level Profit and Adjusted EBITDA do not reflect
changes in, or cash requirements for, our working capital
needs;
- Restaurant-Level Profit and Adjusted EBITDA do not reflect the
impact of the recording or release of valuation allowances or tax
payments that may represent a reduction in cash available to
us;
- Restaurant-Level Profit and Adjusted EBITDA do not consider the
potentially dilutive impact of stock-based compensation;
- Restaurant-Level Profit is not indicative of overall results of
the Company and does not accrue directly to the benefit of
stockholders, as corporate-level expenses are excluded;
- Adjusted EBITDA does not take into account any income or costs
that management determines are not indicative of ongoing operating
performance, such as stock-based compensation, loss on disposal of
property and equipment, Spyce acquisition costs, certain other
expenses, and, in certain periods, impairment of long-lived assets
and closed-store costs; and
- other companies, including those in our industry, may calculate
Restaurant-Level Profit and Adjusted EBITDA differently, which
reduces their usefulness as comparative measures.
Because of these limitations, you should consider
Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted
EBITDA and Adjusted EBITDA Margin alongside other financial
performance measures, loss from operations, net loss, and our other
GAAP results.
About sweetgreen
Sweetgreen (NYSE: SG) passionately believes that real food
should be convenient and accessible to everyone. Every day, across
its 160+ restaurants, their team members create plant-forward,
seasonal, and earth-friendly meals from fresh ingredients and
produce that prioritizes organic, regenerative, and local sourcing.
Sweetgreen strongly believes in harnessing the power of technology
to enhance the customer experience, and leverages their app to
create an omnichannel experience to meet their customers where they
are. Sweetgreen’s strong food ethos and investment in local
communities have enabled them to grow into a national brand with a
mission to build healthier communities by connecting people to real
food.
SWEETGREEN, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share and
per share amounts)
(unaudited)
Thirteen Weeks Ended
June 26, 2022
June 27, 2021
Revenue
$
124,918
100
%
$
86,212
100
%
Restaurant operating costs (exclusive of
depreciation and amortization presented separately below):
Food, beverage, and packaging
33,897
27
%
23,156
27
%
Labor and related expenses
37,013
30
%
26,735
31
%
Occupancy and related expenses
15,826
13
%
11,817
14
%
Other restaurant operating costs
15,134
12
%
11,669
14
%
Total restaurant operating costs
101,870
82
%
73,377
85
%
Operating expenses:
General and administrative
51,262
41
%
26,081
30
%
Depreciation and amortization
11,305
9
%
8,408
10
%
Pre-opening costs
2,520
2
%
2,506
3
%
Closed-store costs
152
—
%
—
—
%
Loss on disposal of property and
equipment
11
—
%
5
—
%
Total operating expenses
65,250
52
%
37,000
43
%
Loss from operations
(42,202
)
(34
) %
(24,165
)
(28
) %
Interest income
(593
)
—
%
(109
)
—
%
Interest expense
22
—
%
23
—
%
Other income
(1,618
)
(1
) %
2,804
3
%
Net loss before income taxes
(40,013
)
(32
) %
(26,883
)
(31
) %
Income tax expense
20
—
%
—
—
%
Net loss
$
(40,033
)
(32
) %
$
(26,883
)
(31
) %
Earnings per share:
Net loss per share, Class S and Common
stock basic and diluted
$
(0.36
)
$
(1.55
)
Weighted average shares used in computing
net loss per share, Class S and Common stock basic and diluted
109,679,467
17,359,717
SWEETGREEN, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share and
per share amounts)
(unaudited)
Twenty-Six Weeks Ended
June 26, 2022
June 27, 2021
Revenue
$
227,509
100
%
$
147,604
100
%
Restaurant operating costs (exclusive of
depreciation and amortization presented separately below):
Food, beverage, and packaging
61,003
27
%
40,424
27
%
Labor and related expenses
71,315
31
%
49,027
33
%
Occupancy and related expenses
30,626
13
%
21,865
15
%
Other restaurant operating costs
28,218
12
%
21,350
14
%
Total restaurant operating costs
191,162
84
%
132,666
90
%
Operating expenses:
General and administrative
100,934
44
%
49,462
34
%
Depreciation and amortization
21,982
10
%
16,255
11
%
Pre-opening costs
5,032
2
%
3,468
2
%
Closed-store costs
152
—
%
—
—
%
Loss on disposal of property and
equipment
19
—
%
56
—
%
Total operating expenses
128,119
56
%
69,241
47
%
Loss from operations
(91,772
)
(40
) %
(54,303
)
(37
) %
Interest income
(761
)
—
%
(221
)
—
%
Interest expense
45
—
%
42
—
%
Other income
(1,863
)
(1
) %
2,804
2
%
Net loss before income taxes
(89,193
)
(39
) %
(56,928
)
(39
) %
Income tax expense
40
—
%
—
—
%
Net loss
$
(89,233
)
(39
) %
$
(56,928
)
(39
) %
Earnings per share:
Net loss per share, Class S and Common
stock basic and diluted
$
(0.81
)
$
(3.32
)
Weighted average shares used in computing
net loss per share, Class S and Common stock basic and diluted
109,575,841
17,162,245
SWEETGREEN INC. AND
SUBSIDIARIES
SELECTED BALANCE SHEET, CASH
FLOW AND OPERATING DATA
(dollars in thousands)
(unaudited)
As of June 26,
2022
As of December 26,
2021
SELECTED BALANCE SHEET DATA:
Cash and cash equivalents
$
406,976
$
471,971
Total assets
$
727,471
$
762,649
Total liabilities
$
115,288
$
109,532
Total stockholders’ equity
$
612,183
$
653,117
Twenty-six weeks ended
June 26, 2022
June 27, 2021
SELECTED CASH FLOW:
Net cash used in operating activities
(17,916
)
(27,582
)
Net cash used in investing activities
(50,115
)
(41,423
)
Net cash provided by financing
activities
2,927
115,926
Net (decrease) increase in cash and cash
equivalents and restricted cash
$
(65,104
)
$
46,921
Thirteen weeks ended
Twenty-six weeks ended
June 26, 2022
June 27, 2021
June 26, 2022
June 27, 2021
SELECTED OPERATING DATA:
Net New Restaurant Openings
8
9
16
10
Average Unit Volume (as adjusted)(1)
$
2,881
$
2,447
$
2,881
$
2,447
Same-Store Sales Change (%)(2)
16
%
86
%
24
%
9
%
Restaurant-Level Profit
$
23,048
$
12,835
$
36,347
$
14,938
Restaurant-Level Profit Margin (%)
18
%
15
%
16
%
10
%
Adjusted EBITDA
$
(7,366
)
$
(13,822
)
$
(23,907
)
$
(34,840
)
Adjusted EBITDA Margin (%)
(6
) %
(16
) %
(11
) %
(24
) %
Total Digital Revenue Percentage
62
%
68
%
64
%
72
%
Owned Digital Revenue Percentage
40
%
47
%
41
%
50
%
(1)
Our results for the thirteen and
twenty-six weeks ended June 27, 2021 have been adjusted to reflect
the material, temporary closures of 19 restaurants in fiscal year
2020 due to the COVID-19 pandemic by excluding such restaurants
from the Comparable Restaurant Base. Without these adjustments, AUV
would have been $2.2 million as of June 27, 2021. No restaurants
were excluded from the Comparable Restaurant Base for the thirteen
and twenty-six weeks ended June 26, 2022.
(2)
Our results for the thirteen and
twenty-six weeks ended June 27, 2021 have been adjusted to reflect
the temporary closures of 19 restaurants in fiscal year 2020 due to
the COVID-19 pandemic and the temporary closures of 56 restaurants
due to civil disturbances that occurred during one week in the
second fiscal quarter of fiscal year 2020. Without these
adjustments, Same Store Sales Change would have been 106% and 16%
for the thirteen and twenty-six weeks ended June 27, 2021,
respectively.
SWEETGREEN, INC. AND
SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP Measures
(dollars in thousands)
(unaudited)
The following table sets forth a
reconciliation of our loss from operations to Restaurant-Level
Profit, as well as the calculation of loss from operations margin
and Restaurant-Level Profit Margin for each of the periods
indicated:
Thirteen weeks ended
Twenty-six weeks ended
June 26, 2022
June 27, 2021
June 26, 2022
June 27, 2021
Loss from operations
$
(42,202
)
$
(24,165
)
$
(91,772
)
$
(54,303
)
Add back:
General and administrative
51,262
26,081
100,934
49,462
Depreciation and amortization
11,305
8,408
21,982
16,255
Pre-opening costs
2,520
2,506
5,032
3,468
Closed-store costs
152
—
152
—
Loss on disposal of property and
equipment(1)
11
5
19
56
Restaurant-Level Profit
$
23,048
$
12,835
$
36,347
$
14,938
Loss from operations margin
(34
)%
(28
)%
(40
)%
(37
)%
Restaurant-Level Profit Margin
18
%
15
%
16
%
10
%
(1)
Loss on disposal of property and equipment
includes the loss on disposal of assets related to retirements and
replacement or write-off of leasehold improvements or
equipment.
The following table sets forth a reconciliation of our net loss
to Adjusted EBITDA, as well as the calculation of net loss margin
and Adjusted EBITDA Margin for each of the periods indicated:
Thirteen weeks ended
Twenty-six weeks ended
June 26, 2022
June 27, 2021
June 26, 2022
June 27, 2021
Net loss
$
(40,033
)
$
(26,883
)
$
(89,233
)
$
(56,928
)
Non-GAAP adjustments:
Income tax expense
20
—
40
—
Interest income
(593
)
(109
)
(761
)
(221
)
Interest expense
22
23
45
42
Depreciation and amortization
11,305
8,408
21,982
16,255
Stock-based compensation(1)
23,207
1,877
45,372
3,099
Loss on disposal of property and
equipment(2)
11
5
19
56
Closed-store costs(3)
152
—
152
—
Other expense/(income)(4)
(1,618
)
2,804
(1,863
)
2,804
Spyce acquisition costs(5)
161
53
340
53
Adjusted EBITDA
$
(7,366
)
$
(13,822
)
$
(23,907
)
$
(34,840
)
Net loss margin
(32
)%
(31
)%
(39
)%
(39
)%
Adjusted EBITDA Margin
(6
)%
(16
)%
(11
)%
(24
)%
(1)
Includes non-cash, stock-based
compensation.
(2)
Loss on disposal of property and equipment
includes the loss on disposal of assets related to retirements and
replacement or write-off of leasehold improvements or
equipment.
(3)
Closed-store costs include non-cash
restaurant charges such as up-front expensing the net present value
of unpaid rent remaining on the life of a lease offset by assumed
sublease income.
(4)
Other expense/(income) includes the change
in fair value of the contingent consideration.
(5)
Spyce acquisition costs includes one-time
costs we incurred in order to acquire Spyce including, severance
payments, retention bonuses, and valuation and legal expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005841/en/
sweetgreen Contact, Investor Relations:
Rebecca Nounou ir@sweetgreen.com
sweetgreen Contact, Media:
Maude Michel press@sweetgreen.com
Sweetgreen (NYSE:SG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sweetgreen (NYSE:SG)
Historical Stock Chart
From Apr 2023 to Apr 2024