Sweetgreen Is Finally Growing Again. Time To Buy?
Key PointsSweetgreen says its turnaround plan is delivering results.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
