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 first
fiscal quarter ended March 31, 2024.
First quarter 2024 financial
highlights
For the first quarter of fiscal year 2024, compared to the first
quarter of fiscal year 2023:
- Total revenue was $157.9 million, versus $125.1 million in the
prior year period, an increase of 26%.
- Same-Store Sales Change of 5% was consistent with the prior
year period.
- AUV of $2.9 million was consistent with the prior year
period.
- Total Digital Revenue Percentage of 59% and Owned Digital
Revenue Percentage of 33%, versus Total Digital Revenue Percentage
of 61% and Owned Digital Revenue Percentage of 39% in the prior
year period.
- Loss from operations was $(26.9) million and loss from
operations margin was (17)%, versus loss from operations of $(35.3)
million and loss from operations margin of (28)% in the prior year
period.
- Restaurant-Level Profit(1) was $28.5 million and
Restaurant-Level Profit Margin was 18%, versus Restaurant-Level
Profit of $16.9 million and Restaurant-Level Profit Margin of 14%
in the prior year period.
- Net loss was $(26.1) million and net loss margin was (17)%,
versus net loss of $(33.7) million and net loss margin of (27)% in
the prior year period.
- Adjusted EBITDA(1) was $0.1 million, versus Adjusted EBITDA of
$(6.7) million in the prior year period; and Adjusted EBITDA Margin
was 0%, versus (5)% in the prior year period.
- 6 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 financial measures that are not calculated in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”). Reconciliations of
Restaurant-Level Profit, Restaurant-Level Profit Margin, Adjusted
EBITDA, and Adjusted EBITDA Margin 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.”
“Sweetgreen delivered strong first quarter results across the
board. Year-over-year, revenue grew 26% and Restaurant-Level Profit
Margin expanded by 400 basis points to 18%. We delivered positive
Adjusted EBITDA during a traditionally slower first quarter. We
remain confident that our strategy positions Sweetgreen for success
today as well as for long-term, capital efficient, profitable
growth,” said Jonathan Neman, Co-Founder and Chief Executive
Officer. “At the heart of our strategy and our business is our team
members. I want to take a moment to extend my gratitude to each of
them for their unrelenting drive to further our mission of
connecting people to real food.”
Results for the first quarter ended
March 31, 2024:
Total revenue in the first quarter of fiscal 2024 was $157.9
million, an increase of 26% versus the prior year period. This
increase was primarily due to an increase of $21.1 million of
incremental revenue associated with 41 Net New Restaurant Openings
during or subsequent to the first quarter of fiscal 2023. In
addition, $6.4 million of the increase was the result of Same-Store
Sales Change of 5% due to menu price increases that were
implemented subsequent to the prior year period. The remaining $5.3
million of the increase was due to additional fiscal year-over-year
comparable restaurant sales growth, which would have been reflected
in our Same-Store Sales Change had we not adjusted for the
misalignment in our comparable weeks resulting from fiscal year
2023 being a 53-week year, as described below.
Our loss from operations margin was (17)% for the first quarter
of fiscal 2024 versus (28)% in the prior year period.
Restaurant-Level Profit Margin was 18%, an increase of more than
400 basis points versus the prior year period, due to the impact of
menu price increases, and labor optimization, partially offset by a
benefit we received during the thirteen weeks ended March 26, 2023,
related to refundable employee retention tax credits (“ERC”) issued
as part of the Coronavirus Aid, Relief and Economic Security
Act.
General and administrative expense was $36.9 million, or 23% of
revenue for the first quarter of fiscal 2024, as compared to $34.9
million, or 28% of revenue in the prior year period. The increase
in general and administrative expense was primarily due to a $5.1
million benefit received in the first quarter of fiscal 2023 from
ERC and increases during the first quarter of fiscal 2024 of $0.9
million in marketing and advertising costs and $0.8 million in
management salaries and benefits, including bonus. These increases
were partially offset by a $4.6 million decrease in stock-based
compensation expense primarily related to the decrease in expense
associated with restricted stock units and performance-based
restricted stock units issued prior to our IPO.
Net loss for the first quarter of 2024 was $(26.1) million, as
compared to $(33.7) million in the prior year period. The decrease
in net loss was primarily due to an $11.6 million increase in our
Restaurant-Level Profit and a $1.9 million decrease in pre-opening
costs. The increase in Restaurant-Level Profit and the decrease in
pre-opening costs were partially offset by an increase in other
expenses related to the change in fair value of our contingent
consideration from our acquisition of Spyce, increases in general
and administrative expenses described above, and an increase in
depreciation and amortization associated with additional
restaurants.
Adjusted EBITDA, which excludes stock-based compensation expense
and certain other adjustments, was $0.1 million for the first
quarter of 2024, as compared to $(6.7) million in the prior year
period. This improvement was primarily due to an increase in
Restaurant-Level Profit partially offset by an increase in general
and administrative expenses.
Fiscal Year 2024 Outlook
For fiscal year 2024, we are updating our financial guidance to
reflect the strength of the first quarter.
- 23-27 Net New Restaurant Openings
- Revenue ranging from $660 million to $675 million
- Same-Store Sales Change between 4-6%
- Restaurant-Level Profit Margin of 18.5%-20%
- Adjusted EBITDA between $10 million to $19 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 call to discuss its financial
results and financial outlook today, May 9, 2024, 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 financial outlook for the second fiscal quarter and
full fiscal year 2024, including our expectations regarding the
number of Net New Restaurant Openings, including those that will
contain the Infinite Kitchen, as well as the timing of such
openings, and our revenue, Same-Store Sales Change,
Restaurant-Level Profit Margin and Adjusted EBITDA, in particular
our ability to achieve positive Adjusted EBITDA for the full fiscal
year in 2024; that our strategy positions us for success today as
well as for long-term, capital efficient, profitable growth; our
excitement about the future of Sweetgreen; our progress towards our
goal of redefining fast food; our future operational plans,
including our focus on expanding, and expectations regarding,
margins and our plan to re-accelerate unit growth in 2025; our
efforts to broaden our menu and drive menu innovation, which we
expect in turn to drive traffic, favorable product mix and check
size, create better customer and team member experiences, and
unlock long-term value for our shareholders; our efforts to reward
and retain a qualified workforce and to appropriately optimize our
workforce; the continued strength of our brand and our ability to
capture a massive whitespace for our category-defining concept; our
strategic priorities, growth strategy and business aspirations; our
plans regarding innovation and the resulting potential benefit to
our business; our expectations regarding Infinite Kitchen and its
financial and operational benefits and its ability to disrupt the
industry; our ability to achieve or maintain profitability and our
commitment to balancing growth and profitability; and management’s
other plans, priorities, initiatives, and strategies.
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 or phrases such as “anticipate,” “are confident
that,” “believe,” “contemplate,” “continue,” “could,” “estimate,”
“expect,” “intend,” “may,” “opportunity,” “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 and the related conference call 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,
uncertainties regarding changes in economic conditions and
geopolitical events, and the customer behavior trends they drive,
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 impact of severe weather conditions or natural
disasters on our restaurant sales and results of operations, 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, the impact of pandemics or
disease outbreaks, 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 31, 2023 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. The measure of
AUV allows us to assess changes in guest traffic and per
transaction patterns at our restaurants. Fiscal year 2023 was a
53-week year, and in order to provide a measurement period that is
consistent with comparable periods that span a 52-week year, rather
than simply excluding the extra week, we applied an averaging
methodology to the last period of fiscal 2023 to adjust for the
extra week.
- 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. A restaurant is considered to have had a
material, temporary closure if it had no operations for a
consecutive period of at least 30 days. No restaurants were
excluded from the Comparable Restaurant Base for the thirteen weeks
ended March 31, 2024. Two restaurants were excluded from the
Comparable Restaurant Base for the thirteen weeks ended March 26,
2023. Such adjustment did not result in a material change to our
AUV.
- 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 given 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
excluding the 14th week in any 14-week period and the 53rd week in
any 53-week period, as applicable; 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. Fiscal year 2023 was a 53-week year,
which resulted in a misalignment in our comparable weeks in fiscal
year 2024. To adjust for this misalignment, in calculating
Same-Store Sales Change for each fiscal quarter and the full fiscal
year 2024, we shifted each week within fiscal year 2023 forward by
one week to better align with the 2024 calendar year, specifically
to match the timing of holidays and achieve a more accurate
comparable Same-Store Sales Change to the prior period. During the
thirteen weeks ended March 31, 2024, three restaurants were
excluded from the calculation of Same-Store Sales Change. Such
adjustments did not result in a material change to Same-Store Sales
Change. This 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. Our Owned Digital Revenue Percentage is the
percentage of our revenue attributed to purchases made through our
Owned Digital Channels.
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 and
closure costs and restructuring charges. 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 corporate headquarters, which we refer to as
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 income
tax expense, interest income, interest expense, depreciation and
amortization, stock-based compensation expense, loss on disposal of
property and equipment, other (income) expense, Spyce acquisition
costs, our enterprise resource planning system (“ERP”)
implementation and related costs, and, in certain periods,
impairment and closure costs, restructuring charges and legal
settlements. 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; certain other expenses; Spyce acquisition
costs; ERP implementation and related costs; legal settlements;
and, in certain periods, impairment and closure costs and
restructuring charges; 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) is on a mission to build healthier
communities by connecting people to real food. Sweetgreen sources
the best quality ingredients from farmers and suppliers they trust
to cook food from scratch that is both delicious and nourishing.
They plant roots in each community by building a transparent supply
chain, investing in local farmers and growers, and enhancing the
total experience with innovative technology. Since opening its
first 560-square-foot location in 2007, Sweetgreen has scaled to
over 225 locations across the United States, and their vision is to
lead the next generation of restaurants and lifestyle brands built
on quality, community and innovation. To learn more about
Sweetgreen, its menu, and its loyalty program, visit
www.Sweetgreen.com. Follow @Sweetgreen on Instagram, Facebook and
X.
SWEETGREEN, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
per share amounts)
(unaudited)
As of
March 31,
2024
As of
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
243,756
$
257,230
Accounts receivable
5,590
3,502
Inventory
1,854
2,069
Prepaid expenses
6,773
5,767
Current portion of lease acquisition
costs
93
93
Other current assets
5,622
7,450
Total current assets
263,688
276,111
Operating lease assets
$
243,602
$
243,992
Property and equipment, net
267,132
266,902
Goodwill
35,970
35,970
Intangible assets, net
26,356
27,407
Security deposits
1,406
1,406
Lease acquisition costs, net
403
426
Restricted cash
125
125
Other assets
4,020
4,218
Total assets
$
842,702
$
856,557
LIABILITIES, AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of operating lease
liabilities
$
32,348
$
31,426
Accounts payable
19,722
17,380
Accrued expenses
22,003
20,845
Accrued payroll
10,122
13,131
Gift cards and loyalty liability
3,137
2,797
Other current liabilities
—
6,000
Total current liabilities
87,332
91,579
Operating lease liabilities, net of
current portion
$
272,053
$
271,439
Contingent consideration liability
10,377
8,350
Other non-current liabilities
799
819
Deferred income tax liabilities
1,863
1,773
Total liabilities
$
372,424
$
373,960
COMMITMENTS AND CONTINGENCIES (Note
14)
Stockholders’ equity:
Common stock, $0.001 par value per share,
2,000,000,000 Class A shares authorized, 100,338,733 and 99,700,052
Class A shares issued and outstanding as of March 31, 2024 and
December 31, 2023, respectively; 300,000,000 Class B shares
authorized, 12,871,027 and 12,939,094 Class B shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively
113
113
Additional paid-in capital
1,281,217
1,267,469
Accumulated deficit
(811,052
)
(784,985
)
Total stockholders’ equity
470,278
482,597
Total liabilities and stockholders’
equity
$
842,702
$
856,557
SWEETGREEN, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share and
per share amounts)
(unaudited)
Thirteen Weeks Ended
March 31,
2024
March 26,
2023
Revenue
$
157,850
100
%
$
125,062
100
%
Restaurant operating costs (exclusive of
depreciation and amortization presented separately below):
Food, beverage, and packaging
43,718
28
%
35,587
28
%
Labor and related expenses
45,766
29
%
39,243
31
%
Occupancy and related expenses
14,448
9
%
12,630
10
%
Other restaurant operating costs
25,381
16
%
20,665
17
%
Total restaurant operating costs
129,313
82
%
108,125
86
%
Operating expenses:
General and administrative
36,865
23
%
34,907
28
%
Depreciation and amortization
16,427
10
%
13,110
10
%
Pre-opening costs
1,432
1
%
3,366
3
%
Impairment and closure costs
157
—
%
190
—
%
Loss on disposal of property and
equipment
66
—
%
48
—
%
Restructuring charges
505
—
%
638
1
%
Total operating expenses
55,452
35
%
52,259
42
%
Loss from operations
(26,915
)
(17
)%
(35,322
)
(28
)%
Interest income
(3,016
)
(2
)%
(3,062
)
(2
)%
Interest expense
19
—
%
21
—
%
Other income
2,059
1
%
1,058
1
%
Net loss before income taxes
(25,977
)
(16
)%
(33,339
)
(27
)%
Income tax expense
90
—
%
318
—
%
Net loss
$
(26,067
)
(17
)%
$
(33,657
)
(27
)%
Earnings per share:
Net loss per share basic and diluted
$
(0.23
)
$
(0.30
)
Weighted average shares used in computing
net loss per share, basic and diluted
112,772,776
111,297,064
SWEETGREEN, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Thirteen weeks ended
March 31,
2024
March 26,
2023
Cash flows from operating activities:
Net loss
$
(26,067
)
$
(33,657
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
16,427
13,110
Amortization of lease acquisition
23
23
Amortization of loan origination fees
19
21
Amortization of cloud computing
arrangements
226
216
Non-cash operating lease cost
7,547
11,829
Loss on fixed asset disposal
66
48
Stock-based compensation
9,626
14,265
Non-cash impairment and closure costs
24
190
Non-cash restructuring charges
175
638
Deferred income tax expense
90
319
Change in fair value of contingent
consideration liability
2,027
1,052
Changes in operating assets and
liabilities:
Accounts receivable
(2,088
)
(1,820
)
Inventory
215
99
Prepaid expenses and other assets
775
(5,939
)
Operating lease liabilities
(5,820
)
(12,789
)
Accounts payable
1,884
7,012
Accrued payroll and benefits
(3,009
)
2,177
Accrued expenses
966
310
Gift card and loyalty liability
340
(180
)
Other non-current liabilities
(20
)
(54
)
Net cash provided by (used in) operating
activities
3,426
(3,130
)
Cash flows from investing activities:
Purchase of property and equipment
(13,410
)
(30,860
)
Purchase of intangible assets
(1,612
)
(1,525
)
Security and landlord deposits
—
6
Net cash used in investing activities
(15,022
)
(32,379
)
Cash flows from financing activities:
Proceeds from stock option exercise
1,990
767
Payment of contingent consideration
(3,868
)
—
Payment associated to shares repurchased
for tax withholding
—
(44
)
Net cash provided by (used in) financing
activities
(1,878
)
723
Net decrease in cash and cash equivalents
and restricted cash
(13,474
)
(34,786
)
Cash and cash equivalents and restricted
cash—beginning of year
257,355
331,739
Cash and cash equivalents and restricted
cash—end of period
$
243,881
$
296,953
Non-cash investing and financing
activities
Purchase of property and equipment accrued
in accounts payable and accrued expenses
$
7,474
$
5,907
Non-cash issuance of common stock
associated with Spyce milestone achievement
$
2,132
$
—
SWEETGREEN INC. AND
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL AND
OTHER DATA
(dollars in thousands)
(unaudited)
Thirteen weeks ended
March 31,
2024
March 26,
2023
SELECTED OPERATING DATA:
Net New Restaurant Openings
6
9
Average Unit Volume (as adjusted)(1)
$
2,889
$
2,932
Same-Store Sales Change (%) (as
adjusted)(2)
5
%
5
%
Total Digital Revenue Percentage
59
%
61
%
Owned Digital Revenue Percentage
33
%
39
%
(1)
No restaurants were excluded from the
Comparable Restaurant Base for the thirteen weeks ended March 31,
2024. Our results for the thirteen weeks ended March 26, 2023 have
been adjusted to reflect the temporary closures of two restaurants,
which were excluded from the Comparable Restaurant Base. Such
adjustments did not result in a material change to AUV.
(2)
Our results for the thirteen weeks ended
March 31, 2024 have been adjusted to reflect the temporary closures
of three restaurants, which were excluded from the calculation of
Same-Store Sales Change. Such adjustments did not result in a
material change to Same-Store Sales Change. No restaurants were
excluded from the calculation of Same-Store Sales Change during the
thirteen weeks ended March 26, 2023.
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
March 31,
2024
March 26,
2023
Loss from operations
$
(26,915
)
$
(35,322
)
Add back:
General and administrative
36,865
34,907
Depreciation and amortization
16,427
13,110
Pre-opening costs
1,432
3,366
Impairment and closure costs
157
190
Loss on disposal of property and
equipment(1)
66
48
Restructuring charges(2)
505
638
Restaurant-Level Profit
$
28,537
$
16,937
Loss from operations margin
(17
)%
(28
)%
Restaurant-Level Profit Margin
18
%
14
%
(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.
(2)
Restructuring charges are expenses that
are paid in connection with reorganization of our operations. These
costs primarily include lease and related costs associated with our
vacated former Sweetgreen Support Center, including the impairment
and the amortization of the operating lease asset.
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
March 31,
2024
March 26,
2023
Net loss
$
(26,067
)
$
(33,657
)
Non-GAAP adjustments:
Income tax expense
90
318
Interest income
(3,016
)
(3,062
)
Interest expense
19
21
Depreciation and amortization
16,427
13,110
Stock-based compensation(1)
9,626
14,265
Loss on disposal of property and
equipment(2)
66
48
Impairment and closure costs(3)
157
190
Other expense/(income)(4)
2,059
1,058
Spyce acquisition costs(5)
—
161
Restructuring charges(6)
505
638
ERP implementation and related
costs(7)
226
216
Legal Settlements(8)
21
—
Adjusted EBITDA
$
113
$
(6,694
)
Net loss margin
(17
)%
(27
)%
Adjusted EBITDA Margin
—
%
(5
)%
(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)
Includes costs related to impairment of
long-lived assets and store closures.
(4)
Other expense includes the change in fair
value of the contingent consideration. See Note 3 to our condensed
consolidated financial statements included elsewhere in our
Quarterly Report for the first quarter of fiscal 2024.
(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.
(6)
Restructuring charges are expenses that
are paid in connection with reorganization of our operations. These
costs primarily include lease and related non-cash expenses
associated with the vacated former Sweetgreen Support Center,
including the impairment and the amortization of the operating
lease asset.
(7)
Represents the amortization costs
associated to the implementation from our cloud computing
arrangements in relation to our new ERP.
(8)
Expenses recorded for accruals related to
the settlements of legal matters.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509480918/en/
Sweetgreen Contact, Investor Relations: Rebecca Nounou
ir@sweetgreen.com
Sweetgreen Contact, Media: Jenny Seltzer
press@sweetgreen.com
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