Casual salad chain Sweetgreen (NYSE:SG) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Sweetgreen missed analysts’ revenue expectations last quarter, reporting revenues of $161.5 million, down 2.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ same-store sales 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 grow 4.5% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 9.3%, meeting analysts’ expectations, and Wingstop reported revenues up 6.4%, falling short of estimates by 2.4%. Chipotle traded up 12.5% following the results while Wingstop’s stock price was unchanged.
Read our full analysis of Chipotle’s results here and Wingstop’s results here.
Investors in the restaurants segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Sweetgreen is down 28.3% during the same time and is heading into earnings with an average analyst price target of $7.83 (compared to the current share price of $5.77).
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