Sweetgreen (SG) - ★★
Ranked #73 in Q3 2024 SMID Cap Equity Rankings
Sweetgreen (NYSE: SG) saw its stock price soar 27% during intraday trading following the release of its impressive third-quarter earnings report. The salad chain's shares are now trading in the $33 range, just 10% shy of its 52-week high of $36.72. This latest surge contributes to Sweetgreen's remarkable year-to-date performance, with the stock up an astounding 191%.
The company reported robust financial results that exceeded market expectations. Revenue for the quarter jumped 21% year-over-year to $184.6 million, surpassing the consensus estimate of $180.78 million. This growth was primarily driven by the addition of 36 net new restaurant openings since the same period last year, which contributed an extra $18.2 million to the top line.
source: TradingView
Same-store sales growth was also strong, increasing by 9% compared to the previous year. This uptick was attributed to a 5% boost from menu price hikes implemented after June 25, 2023, coupled with a 4% rise due to higher traffic and a favorable product mix. The company's average unit volume (AUV), as adjusted, reached $2.9 million.
The strong performance and positive market reaction highlight Sweetgreen's continued expansion and ability to attract customers despite inflationary pressures. As the company continues to grow its restaurant footprint and optimize its digital channels, investors will be watching closely to see if this momentum can be sustained in the coming quarters.
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