Sweetgreen shares nosedive 14% on weak outlook as Q4 results fall short of expectations

Published 26/02/2025, 22:36
Sweetgreen shares nosedive 14% on weak outlook as Q4 results fall short of expectations

NEW YORK - Sweetgreen Inc. (NYSE:SG) shares plunged 14.4% in after-hours trading on Wednesday after the salad chain reported fourth-quarter results that missed analyst expectations and provided weaker-than-anticipated guidance for 2025.

The company posted revenue of $160.9 million for the quarter ended December 29, 2024, up 5% YoY but below the consensus estimate of $163.4 million. Adjusted loss per share came in at -$0.25, worse than analysts’ projections of -$0.20.

While Sweetgreen saw same-store sales increase 4% in Q4, its outlook disappointed investors. For fiscal 2025, the company expects revenue between $760-$780 million, falling short of Wall Street’s forecast of $788.8 million. First-quarter revenue guidance of $163-$166 million also missed the $178.5 million analyst consensus.

"Our 2024 results exceeded our initial expectations, thanks to the strength of our menu innovation, technology, and overall guest experience," said Jonathan Neman, Co-Founder and CEO. "In 2025, we’re rolling out a new and improved loyalty program, introducing exciting new menu items, and strategically investing more in marketing to bring more people into our restaurants."

Despite the weak outlook, Sweetgreen highlighted its first full year of adjusted EBITDA profitability in 2024, with adjusted EBITDA of $18.7 million improving by $21.5 million over 2023. The company plans to open at least 40 new restaurants in 2025, with 20 featuring its new "Infinite Kitchen" automated assembly system.

Investors appear concerned about slowing growth, with 2025 same-store sales projected at just 1-3% compared to 6% in 2024. Management will likely face questions about the conservative outlook on the earnings call.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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