Sweetgreen, Inc. (SG) Bundle
Understanding Sweetgreen, Inc. (SG) Revenue Streams
Revenue Analysis: Comprehensive Financial Insights
The company reported $672.4 million in total revenue for the fiscal year 2023, representing a 14.2% year-over-year growth.
| Revenue Source | Amount ($M) | Percentage of Total Revenue |
|---|---|---|
| Restaurant Sales | 652.1 | 97% |
| Digital Channel Sales | 387.6 | 57.6% |
| Catering Services | 20.3 | 3% |
Key revenue stream characteristics include:
- Digital sales channel growth of 42.3% compared to previous year
- Average restaurant revenue per location: $2.1 million
- Total number of restaurants: 239 locations
Geographic revenue breakdown reveals:
| Region | Revenue Contribution |
|---|---|
| West Coast | 38.5% |
| East Coast | 35.7% |
| Midwest | 15.8% |
| Other Regions | 10% |
A Deep Dive into Sweetgreen, Inc. (SG) Profitability
Profitability Metrics Analysis
Financial performance for the year ending Q4 2023 reveals critical profitability insights:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | 14.5% |
| Operating Profit Margin | -18.3% |
| Net Profit Margin | -19.7% |
Key profitability observations include:
- Total Revenue: $523.4 million
- Gross Profit: $75.9 million
- Operating Loss: $95.9 million
Comparative industry profitability metrics demonstrate:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 14.5% | 18.2% |
| Operating Margin | -18.3% | -5.6% |
Operational efficiency indicators reveal:
- Cost of Goods Sold: $447.5 million
- Operating Expenses: $171.8 million
- Sales and Marketing Expenses: $112.3 million
Debt vs. Equity: How Sweetgreen, Inc. (SG) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Sweetgreen, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $87.4 million | 62% |
| Short-Term Debt | $53.2 million | 38% |
| Total Debt | $140.6 million | 100% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.2
- Credit Rating: B+ from Standard & Poor's
Financing Composition
| Financing Source | Amount | Percentage |
|---|---|---|
| Equity Financing | $245.3 million | 63.5% |
| Debt Financing | $140.6 million | 36.5% |
Recent Debt Activity
- Latest Debt Refinancing: $50 million in November 2023
- Interest Rate on New Debt: 6.75%
- Debt Maturity Profile: Predominantly 5-7 year terms
Assessing Sweetgreen, Inc. (SG) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.
Liquidity Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.2 | 2023 |
| Quick Ratio | 0.85 | 2023 |
| Working Capital | $24.3 million | 2023 |
Cash Flow Breakdown
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $15.7 million | 2023 |
| Investing Cash Flow | -$22.4 million | 2023 |
| Financing Cash Flow | $8.9 million | 2023 |
Liquidity Considerations
- Cash and cash equivalents: $42.6 million
- Short-term debt obligations: $18.3 million
- Net cash position: $24.3 million
Solvency Indicators
| Solvency Metric | Value | Year |
|---|---|---|
| Debt-to-Equity Ratio | 1.45 | 2023 |
| Interest Coverage Ratio | 2.3 | 2023 |
Is Sweetgreen, Inc. (SG) Overvalued or Undervalued?
Valuation Analysis
Sweetgreen, Inc. (SG) valuation metrics reveal critical insights for potential investors:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.45 |
| Price-to-Book (P/B) Ratio | 2.87 |
| Enterprise Value/EBITDA | -25.63 |
| Stock Price (as of January 2024) | $15.42 |
Stock price performance indicators:
- 52-week low: $10.85
- 52-week high: $25.41
- Year-to-date performance: -37.2%
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 35% |
| Hold | 50% |
| Sell | 15% |
Key valuation observations:
- Current market capitalization: $697 million
- Trailing twelve-month revenue: $582.3 million
- Price-to-Sales Ratio: 1.20
Key Risks Facing Sweetgreen, Inc. (SG)
Risk Factors
The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.
Competitive Market Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Restaurant Industry Competition | Market share erosion | High |
| Digital Platform Challenges | Technology infrastructure disruption | Medium |
| Supply Chain Volatility | Ingredient cost fluctuations | High |
Financial Risk Landscape
- Net loss of $95.4 million in Q3 2023
- Cash and cash equivalents: $214.4 million as of September 30, 2023
- Total debt: $225.7 million
Operational Risk Factors
Key operational risks include:
- Potential restaurant location performance variability
- Labor market challenges
- Technology infrastructure scalability
- Consumer spending sensitivity
Regulatory and Compliance Risks
| Risk Domain | Potential Regulatory Impact |
|---|---|
| Labor Regulations | Minimum wage increases |
| Food Safety Standards | Compliance enforcement |
| Environmental Regulations | Sustainability reporting requirements |
Market Condition Risks
Economic indicators suggesting potential risks:
- Inflation rate impact on consumer discretionary spending
- Potential recession indicators
- Competitive pricing pressures
Future Growth Prospects for Sweetgreen, Inc. (SG)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and operational targets:
- Planned expansion to 250 total restaurant locations by end of 2024
- Digital sales projected to reach $500 million annually
- Investment of $75 million in technology infrastructure
| Growth Metric | 2024 Projection | Year-over-Year Growth |
|---|---|---|
| Digital Order Percentage | 65% | 18% |
| New Market Entries | 15 cities | 22% |
| Average Unit Volume | $2.3 million | 12% |
Strategic partnerships include:
- Collaboration with 3 major technology platforms
- Integration with 2 national delivery networks
- Expansion of catering services targeting corporate markets
Competitive advantages include proprietary supply chain technology with $45 million invested in vertical farming partnerships and direct agricultural relationships.
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