A password will be e-mailed to you.

Sweetgreen is going to be public, filed paper with SEC
Should You Buy Sweetgreen (SG) IPO Stock?

Sweetgreen has announced that it has going to be public and filed a registration statement with the Securities and Exchange Commission relating to the Initial public offering.

Sweetgreen is seen as a healthier alternative to fast food. A planned debut had been rumored for years, but it comes as the coronavirus pandemic fueled an increase in its digital sales.

There is nothing disclosed such as no. of shares that will be offered for sale or on which date IPO will be open, nothing has been revealed yet. The company filed confidentially for this IPO.

However, through this IPO, Sweetgreen plans to raise around $100 million. It was filed in June 2021.

Sweetgreen stock will list a trade under the symbol “SG” on the NYSE. The pricing for the share for its IPO has not been disclosed yet.

Goldman Sachs, J.P. Morgan, Allen and Company, and Morgan Stanley are joint book-runners for this IPO.

About the company

An outlet of Sweetgreen

Sweetgreen is a fast-casual food chain and restaurants chain service and best known for its salads. It was founded in August 2007. They offer a “plant-forward” menu featuring salads and bowls that change depending on the season and the restaurant’s location. Sweetgreen invested in its mobile app and redesigned its restaurant chain to make picking up online orders as easy as possible.

Sweetgreen claims to be one of the fastest-growing restaurant chains in the U.S. in terms of revenue. The company operates 140 restaurants in 13 states. Sweetgreen plans to double its footprint over the next few years.

The chain, which operates in 13 states, saw its same-store sales decline 26% in 2020, with losses of $142 million that year. This year, same-store sales have turned positive 21%, with $87 million in losses.

Financial Overview

Sweetgreen stated in its filing that their revenue is caused by the pandemic and now they are working hard to regain their growth rapidly.

The salad chain is on board for an aggressive unit growth strategy, adding about 21 locations in the past year. Sweetgreen mentioned in its filing that they are planning to double its current number of stores over the next three to five years.

“We plan to diversify our store formats by adding drive-thru and pick-up only locations to densify our markets, and to bring Sweetgreen into a wide variety of neighborhoods,” the brand said.

 

In their S-1 filing, the company said they served more than 1.3 million customers in the 90 days before its filing and raked in revenues of over $300 million.

Although Sweetgreen is not a profitable business, it is unclear when it will be profitable. As companies spend their cash by building new restaurants and making acquisition Spyce, which makes service robots, this ends up making Sweetgreen’s salads.

Sweetgreen told The New York Times that it’s 2019 revenue topped $300 million.

Companies revenue is soared by 50 percent from last third quarter which was $161 million to $243 million in this respective quarter. The total revenue is fell by 20 percent on a year-on-year basis from 2020-2021.

The let loss was also increased by more than 50 percent from $67 million to $141 million on a Y-o-Y basis from 2020 to 2021.

 

Fiscal Year Ended Thirteen Weeks
Ended
Thirty-Nine Weeks
Ended
Dec. 27,
2020
Dec. 29,
2019
Dec. 30,
2018
Dec. 31,
2017
Dec. 25,
2016
Dec. 27,
2015
Dec. 28,
2014
Sept. 26,
2021
Sept. 27,
2020
Sept. 26,
2021
Sept. 27,
2020
(in thousands)
Consolidated Statements of Operations Data:
Revenue $ 220,615 $ 274,151 $ 220,494 $ 170,500 $ 113,208 $ 62,284 $ 42,107 $ 95,844 $ 55,549 $ 243,448 $ 161,435
Restaurant operating costs (exclusive of depreciation and amortization presented separately below):
Food, beverage, and packaging 66,154 83,966 66,088 55,227 36,625 20,221 13,628 26,701 16,939 67,125 48,857
Labor and related expenses 83,691 86,547 65,373 53,276 34,494 17,382 11,854 30,316 22,727 79,343 61,348
Occupancy and related expenses 43,775 37,050 32,334 24,159 14,781 7,854 5,388 14,053 11,301 35,919 32,268
Other restaurant operating costs 35,697 22,613 16,617 13,677 10,488 5,567 3,246 11,640 9,288 33,001 25,306
Total restaurant operating costs 229,317 230,176 180,412 146,339 96,388 51,024 34,116 82,710 60,255 215,388 167,779
Operating expenses:
General and administrative 99,142 88,818 49,585 39,072 24,979 17,616 9,179 28,944 23,335 78,395 72,168
Depreciation and amortization 26,851 19,416 16,775 12,194 6,635 4,123 2,500 9,303 6,624 25,558 18,831
Pre-opening costs 4,551 5,405 1,839 4,612 6,214 2,499 737 2,789 1,741 6,256 3,592
Impairment of long-lived assets 1,456 115 239 4,415 4,415
Loss on disposal of property and equipment 891 409 313 387 271 197 41 441 56 586
Total operating expenses 132,891 114,048 68,512 56,265 38,099 24,550 12,696 45,451 32,141 114,680 95,177
Loss from operations (141,593 ) (70,073 ) (28,430 ) (32,104 ) (21,279 ) (13,290 ) (4,705 ) (32,317 ) (36,847 ) (86,620 ) (101,521 )
Interest income (1,018 ) (2,724 ) (500 ) (32 ) (77 ) (85 ) (48 ) (78 ) (128 ) (299 ) (940 )
Interest expense 404 88 3,200 976 18 111 176 23 140 65 306
Other expense 245 480 111 (2,196 ) 608 (731 )
Net loss before income taxes (141,224 ) (67,917 ) (31,130 ) (33,048 ) (21,220 ) (13,316 ) (4,944 ) (30,066 ) (36,859 ) (86,994 ) (100,156 )
Income tax provision
Net loss $ (141,224 ) $ (67,917 ) $ (31,130 ) $ (33,048 ) $ (21,220 ) $ (13,316 ) $ (4,944 ) $ (30,066 ) $ (36,859 ) $ (86,994 ) $ (100,156 )

 

 

 

 

 

 

 

Comments

comments

No more articles
Send this to a friend