Julie Bornstein, a director at Sweetgreen, Inc. (NYSE:SG), has reported the sale of 4,464 shares of the company's Class A common stock, according to a recent SEC filing. The transactions, executed on November 27, 2024, were carried out under a 10b5-1 plan dated August 20, 2024. The shares were sold at prices ranging from $41.86 to $42.57, generating a total value of $187,973. Following these sales, Bornstein retains ownership of 32,637 shares in the company.
In other recent news, Sweetgreen Incorporated showcased steady growth and strategic expansions during its Third Quarter 2024 Earnings Call. The company reported a 13% year-over-year increase in sales, reaching $173.4 million, and a 6% growth in same-store sales. Additionally, Sweetgreen managed to decrease its net loss to $20.8 million from the previous year's $25.1 million.
In the same quarter, Sweetgreen opened five new restaurants, bringing the total to 236. The company also announced plans to open at least 40 new restaurants in FY 2025, half of which will feature the Infinite Kitchen technology, a concept appreciated by TD Cowen for its potential in margin expansion and average unit volume growth.
TD Cowen, maintaining its Buy rating and $45.00 price target for Sweetgreen, highlighted the company's successful same-store sales strategy and the potential of its Infinite Kitchen concept. The firm also expressed confidence in Sweetgreen's growth strategy, leading to the company's elevation to TD Cowen's #2 pick.
Despite a slight rise in general and administrative expenses to $36.8 million, Sweetgreen raised its fiscal 2024 guidance, projecting revenue between $675 million to $680 million and same-store sales growth of 6% to 7%. As part of its growth plan, the company also intends to expand its menu and enhance marketing strategies to broaden its brand beyond salads.
InvestingPro Insights
As Julie Bornstein's recent stock sale unfolds, Sweetgreen's financial landscape presents a mix of challenges and opportunities. According to InvestingPro data, Sweetgreen boasts a market capitalization of $5.01 billion, reflecting its significant presence in the fast-casual restaurant sector. The company's revenue growth stands at an impressive 21.72% over the last twelve months as of Q3 2024, indicating strong customer demand for its healthy food offerings.
However, profitability remains a concern. InvestingPro Tips highlight that Sweetgreen is not profitable over the last twelve months, with analysts not anticipating profitability this year. This is further evidenced by the negative P/E ratio of -62.85 and an operating income margin of -13.46%.
Despite these challenges, Sweetgreen's stock has shown remarkable performance. An InvestingPro Tip notes a significant return over the last week, with data showing a 2.86% increase. More impressively, the stock has delivered a staggering 341.98% return over the past year, suggesting strong investor confidence in the company's long-term prospects.
It's worth noting that Sweetgreen operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing some financial stability. However, the stock is trading at high revenue and Price/Book multiples, indicating that investors are pricing in substantial future growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Sweetgreen, providing deeper insights into the company's financial health and market position.
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