Sweetgreen Is Finally Growing Again. Time To Buy?
Sweetgreen posted same-store sales growth in October. Is it the beginning of a turnaround?
Sweetgreen, the fast-casual salad chain, has emerged from a period of declining same-store sales and is now showing signs of growth. The company's third-quarter performance was impacted by the Cyclospora outbreak, which caused a 6.4% decrease in same-store sales and a revenue increase of 2.1% to $176 million. However, management reported positive comparable sales in October, with same-store sales up 5% and traffic up 4%.
In response, Sweetgreen has raised its full-year guidance, projecting 3.4% growth in the fourth quarter and a net new restaurant opening of 10, along with an adjusted EBITDA loss of $20 million-$23 million. While the company remains far from its peak, the return to same-store sales growth presents an opportunity for Sweetgreen to improve profitability and expand its restaurant footprint.
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