Operations

Sweetgreen reports mixed Q1 results

Sweetgreen is opening a digital-only location in August in Washington, D.C. Provided

May 6, 2022

Despite Sweetgreen's Q1 revenue growing 67% year-over-year, it reported a 4-cent loss per share as analysts predicted a 41-cent loss, but the quarter ended with a 45-cent loss. Revenue, however, exceeded expectations coming in at $102.6 million vs. the $101.5 million predicted.

Sweetgreen said a $21 million increase in stock-based compensation was the primary reason for its widening losses this quarter. Higher wages and employee bonuses also hindered the numbers, but Co-Founder and CEO Jonathan Neman remained positive.

"This performance underscores the strength of our team, the power of our brand, our unique supply chain, and our digital ecosystem," he said in a company press release. "The strength of our 8 new restaurant openings continues to reinforce our confidence in the development pipeline. We remain well-positioned to achieve our vision of being as ubiquitous as traditional fast food, but with the transparency and quality that consumers increasingly expect."

CFO Mitch Reback said he was encouraged by how the business performed during the first quarter despite Omicron headwinds.

"AUVs recovered to $2.8 million up from $2.1 million this time last year and now exceed the first quarter of 2019," he said in the release. "The path to recovery remains neither linear nor consistent; however, the strength of our brand, product, digital platform and team gives us confidence in reaching our goal of 1,000 restaurants across the United States by the end of the decade. We are well-equipped and keenly focused on building a sustainable business and our path to profitability."

The chain expects the following for the remainder of 2022.