Casual salad chain Sweetgreen (NYSE:SG) will be reporting earnings this Thursday after the bell. Here’s what investors should know.
Sweetgreen missed analysts’ revenue expectations last quarter, reporting revenues of $155.2 million, down 3.5% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.
Is Sweetgreen a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sweetgreen’s revenue to decline 1.3% year on year, a reversal from the 5.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sweetgreen has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sweetgreen’s peers in the modern fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 0.5%, and Portillo's reported revenues up 3.5%, in line with consensus estimates. Chipotle traded up 3% following the results.
Read our full analysis of Chipotle’s results here and Portillo’s results here.
Investors in the modern fast food segment have had steady hands going into earnings, with share prices flat over the last month. Sweetgreen is up 19.7% during the same time and is heading into earnings with an average analyst price target of $6.83 (compared to the current share price of $6.86).
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