Gain of Sweetgreen (SG) Q1 2022

A Sweetgreen banner at the NYSE, November 18, 2021.

Source: NYSE

sweet green Thursday posted increasing losses for the first quarter, but sales rose 67%, fueled by more customer transactions and increases in menu prices.

Shares of the company were up more than 4% in extended trading.

Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts from Refinitiv:

  • Loss per share: 45 cents versus 41 cents expected
  • Revenue: $ 102.6 million versus $ 101.5 million expected

The salad chain reported a first-quarter net loss of $ 49.2 million, or 45 cents per share, higher than the net loss of $ 30 million, or $ 1.77 per share, a year earlier. Analysts interviewed by Refinitiv expected a loss per share of 41 cents.

Sweetgreen said a $ 21 million increase in stock-based compensation was the main reason for the increase in losses this quarter. Higher salaries and employee bonuses also weighed on the company’s restaurant-level margins, partially offset by its decision to discontinue its loyalty program.

Net sales rose 67% to $ 102.6 million, beating expectations of $ 101.5 million.

Sales in the same Sweetgreen store were up 35% in the quarter, after dropping 26% a year ago. The chain has credited more customer transactions and menu price increases. The company has raised its prices by 10% in the past year.

Sweetgreen reiterated its predictions for 2022, forecasting revenue between $ 515 million and $ 535 million and same store sales growth of 20% to 26%, and plans to open at least 35 new net locations.

Read the company’s earnings release here.