Why Sweetgreen Stock Popped Today
Shares of salad restaurant chain Sweetgreen (NYSE: SG) popped on Friday after the company beat expectations across the board for its first quarter of 2024. As of 10 a.m. ET, Sweetgreen stock was up a stunning 40% and hitting 52-week highs.
Sweetgreen underpromised and overdelivered for its Q1. The company opened six new restaurants during the quarter, and same-store sales increased 5%, as opposed to management's guidance of 3%. This led to Q1 revenue of $158 million, which was better than management's guidance of $154 million at best.
Higher sales supported better restaurant-level profit margins for Sweetgreen in Q1. Its Q1 restaurant-level profit margin of 18% was up meaningfully from 14% in the prior-year period. This led to positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $100,000.
Source Fool.com
