Sweetgreen (SG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 21% year-over-year to $184.6 million, driven by new restaurant openings and 9% same-store sales growth from menu price increases and positive traffic/mix.

• Net loss narrowed to $14.5 million from $27.3 million a year ago, reflecting improved operating and restaurant-level margins.

• Adjusted EBITDA for the quarter was $12.4 million, up from $3.3 million in the prior year period.

• Four new restaurants opened in Q2, including entry into New Hampshire, bringing the total to 231 locations across 20 states and Washington, D.C.

• Infinite Kitchen retrofits and new builds are progressing, with strong early results in throughput and team member satisfaction.

Financial highlights

• Total Q2 revenue was $184.6 million, up from $152.5 million in Q2 2023, a 21% increase year-over-year; first half 2024 revenue was $342.5 million, up 23%.

• Same-store sales grew 9% year-over-year, with 5% from menu price and 4% from traffic/mix.

• Restaurant-level profit margin was 22–22.5%, up from 20–20.4% a year ago; restaurant-level profit was $41.5 million, up over 30% year-over-year.

• Adjusted EBITDA margin increased to 7% from 2% in the prior year quarter.

• Ended Q2 with $245 million in cash and generated $22.5 million in positive operating cash flow in the first half of 2024.

Outlook and guidance

• FY 2024 guidance: 24–26 net new restaurant openings, revenue of $670–$680 million, same-store sales growth of 5–7%, restaurant-level margins of 19–20%, and Adjusted EBITDA of $16–$19 million.

• New unit growth rate expected to resume at 15–20% annually, with 2025 at the lower end and 2026+ at the upper end.

• Plans to integrate Infinite Kitchen into more new restaurants in 2024 and 2025.

• Sufficient liquidity and access to a $43.1 million revolving credit facility to fund operations and growth for at least the next 12 months.

• Majority of 2025 pipeline identified; cautious outlook for H2 2024 due to macroeconomic uncertainty.