Breaking Down Sweetgreen, Inc. (SG) Financial Health: Key Insights for Investors

Breaking Down Sweetgreen, Inc. (SG) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Restaurants | NYSE

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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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