Sweetgreen (SG) stock surged 39% Friday, based on its latest results, which saw it top quarterly revenue expectations.
The company posted a loss per share of ($0.23), $0.05 worse than the analyst estimate of ($0.18). However, revenue for the quarter came in at $157.9 million, rising 26% year-on-year and beating the consensus estimate of $151.61 million.
"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%," commented Jonathan Neman, Sweetgreen's co-founder and chief executive officer.
He added: "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."
Looking ahead, the company sees full-year 2024 revenue between $660 and $675 million, versus the consensus of $667 million, with the same-store sales change seen from 4% to 6% and adjusted EBITDA between $10 million to $19 million.
Reacting to the results, Morgan Stanley analysts lifted their price target for the Underweight-rated stock to $17 from $16.
The bank said the top line/margin improved again in the first quarter. They also noted that the quarter-to-date is "running a bit ahead of 4-6% comp range, a positive for stock."
"FY guide flows through 1Q beat, but could be conservative if trends hold and steak/plates build," wrote Morgan Stanley. "Longer term questions drive our view, but a good quarter overall."