Sweetgreen Reports Record Q1 Revenue, Projects First Profitable Year Ahead
Sweetgreen starts the year off strong
The salad restaurant chain opened six new restaurants in Q1, leading to a 5% increase in same-store sales, surpassing the management's guidance of 3%. Q1 revenue reached $158 million, outperforming the $154 million projection.
Positive Financial Performance
The higher sales drove a significant improvement in the restaurant-level profit margin to 18%, up from 14% in the previous year. The company achieved positive adjusted EBITDA of $100,000, signaling a positive outlook for the year.
Investment Considerations
Despite the strong performance, concerns arise due to the stock's high valuation of nearly six times projected sales for 2024. Investors are cautious about potential price corrections in the future and are advised to evaluate investment decisions carefully.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.